Throughout the automotive industry, there are numerous methodologies in the advertising, marketing, and sales techniques hemisphere. However, in this vast market with tremendous competition, there are certain dealership “basics” which can be easily overlooked. These small details, which exist in the most successful dealerships, are often neglected and can result in a quite large downfall in the dealership’s reputation, and brand image. Recently, we at CRMSuite conducted a survey with 25 random nationwide dealerships, all in an effort to test 3 basic dealership methods that should exist in the consumer’s experience, from the very beginning of their car buying process. It involved a rating system from the initial greeting, follow-up email, and survey. The results left much to be desired, with 25 out of the 25 dealerships not adhering to the all 3 of these three details. In addition, the professionalism of EVERY dealership was left lacking, with more of a casual complacency rather than that of a professional workplace.

These basics should be implemented every day, at every store. However, without the knowledge of how these should be presented to the dealership personnel correctly, the basic details will never be satisfied. Covering the three areas to look for will help the store’s brand, as well as its reputation to the consumer.

• The initial greeting of every customer is the easiest step in the success of the customers’ first experience. Yet, it rarely occurs in the form that makes the customer more comfortable. The consumer already has a preexisting idea of what the dealership experience is, and it’s up to each specific store to change this. An initial greeting from a receptionist is one area, but this usually occurs properly, much more than that of the sales team. When the majority of dealership greetings come from a salesperson, ALL sales personnel must be skilled in this area. All staff, especially sales personnel, should always present their greeting while maintaining a well-dressed attire, and using a professional voice to greet every customer. This professional mannerism does not just exist in the physical sense. This mentality is also attributed to the online greeting when departments contact interested customers. Using a professional voice, on the lot or on the web, is the first step to a successful brand and reputation.

• Emails that are not checked for professionalism and proper grammar, should not be sent. When speaking with a customer, the odd mispronunciation is allowed. However, in emailing, even texting, there is no room for error on either. Emails, or any form of written communication, can present the staff member AND the dealership with a professionalism that its competitors will desire. Spelling and grammar are functions that even if not done correctly at first, can be checked by a plethora programs available. These attributes go back to the reputation and branding of the dealership itself; a poorly written email/text will not only not impress the consumer, but it will belittle the dealership’s reputable personnel. In many cases, an email is the first form of proper communication many consumers will receive from the dealership. If the communication was poorly written, the chances of that consumer stepping foot in the dealership will decrease.
   
• Customer experience customer surveys create a birds eye view of the dealerships performance. Many dealerships survey, yes, however it’s about the right way to survey, as well a what the dealership gets out of it. The most lucrative survey, one that will assess the dealership and provide analytical results, is that of a CSI survey. No matter if this is a written or verbal survey, ALL dealerships should be utilizing this type of review system, mainly for the reason of brand and reputation internal awareness. Satisfaction surveys not only allow the dealership to assess areas of possible improvement, but they also provide the opportunity to use incentives toward the customer. By filling a survey out, the customer provides quality information, but also will be drawn back to the dealership, depending on the incentive for filling one out.

The most successful dealerships, as stated before, will build a brand awareness and reputation using the basics. The disbursement methods may change; however, the basic ideology will always stay the same. Using a professional greeting and correspondence will build and protect a dealerships reputation, and utilizing satisfaction surveys will provide useful feedback to correct any issues or areas of improvement. With 25 out of 25 Dealerships surveyed, and all failing at least one of the three details listed above...It appears time has come to get back to basics.

Today begins a new series on providing dealers with a comprehensive look at specific vendor products. All in an effort to bring a better customer experience to each store. Beginning with Call Monitoring, this will be focusing on two of the premier call monitoring solutions; CallRevu’s Call Monitoring & DealerSpecials’ CallWatch Call Monitoring. Taking a comprehensive look at both will allow the dealership the chance to view the pro’s, con’s, and abilities that these two products bring to dealers nationwide

First however, let’s look at call monitoring itself. Inside the dealership call monitoring is a tried and tested method of monitoring all of the calls that are received by the dealership, and being provided a summary of the outcomes. However, the successful dealership will deploy these products where they can not only monitor phone calls, but also have the ability to review, revise, and report on the happenings of the dealerships' positive AND negative calls. Simply said, call monitoring is the act of listening to dealerships calls, summarizing content in a written format, and notifying the dealership of ALL outcomes.

Starting with CallRevu’s Call Monitoring, here are the main points of interest relating to their product, from their viewpoint.

•   24 Pre-set data points

•   Available on desktop, tablet, or mobile

•   Written summary of calls

•   Real-time dynamic dashboard

•   Performance reports

•   In-store coaching

•   Dedicated Performance Managers

•   Alerts for negative outcomes

Moving to DealerSpecials’ CallWatch Call Monitoring solution, here are the standout reasons for purchasing their product, again from their viewpoint.

•   Unlimited data points

•   Available on desktop, tablet, or mobile

•   Written summary of calls

•   Monitoring of sales representative’s direct lines

•   Customizable dashboard, alerts, and reporting in real-time

•   Forward alert functions

•   Dedicated Performance Managers

•   Alerts for positive AND negative outcomes

These are the product’s abilities. However, to find the best fit for the dealership, there needs to be a deep-dive into what each can do that the other cannot; the pro’s and con’s essentially. What are the largest product features that each does that the other does not, or better yet, how do each apply to the same scenario. This is where the differences will stand out dramatically.

How does each CallRevu provide guidance to the dealership?

•   CallRevu provides coaching. Their product model identifies problems, and helps the dealership to correct those problems. Developing better phone techniques. CallRevu will apply a 24 pre-set collection of their own flags that will be applied to calls. For example, a flag or tag will be applied to certain areas, and if that specific tag is found the dealership is notified. The concluding outcome will be an alert when something negative occurs, that needs attention of some kind. 

How does CallRevu guide dealerships? By coaching, providing fixed tags, and alerting the negatives of dealership calls.

How does each CallWatch provide guidance to the dealership?

•   CallWatch does not inform dealers what pre-set areas they will apply, instead the dealer decides what keywords, tags, flags, should be applied; Anything can be applied. With CallWatch, tags are attached to every single call, where applicable. In doing this, they will track not just negative outcomes, but also the positives as well. For example, if a Toyota dealer is looking to find out which calls are phoning into the dealership with a Prius inquiry, there is a tracking capability to focus primarily on that facet of calls. This creates an aggregate data on phone-ups, which gives a view into the point of entry of the dealership, which previously had no visibility. Whatever the dealership cares about monitoring, can be tracked. 

How does CallWatch guide dealerships? By providing unlimited customizable tags, and informing the dealer of the good, the bad, and the ugly. In addition, CallWatch uses this data to compile an aggregate amount of data that can be used to exemplify trends in the dealerships market.

How does each compare on price? This is where there lays a large difference between the two.

CallWatch is LESS THAN HALF the price of CallRevu per call. Second, and most important, is in the way that the calls and pricing are correlated. CallRevu will cost you per call, whether you get an alert or not. The dealership will pay for alerts, not calls. For example, if the dealership is charged $3 per call by CallRevu, and gets a negative alert every 10 calls, it suddenly costs the dealership $30 before any results were seen. On the other side, with CallWatch, you’re paying for every call, because there is data being aggregated for every call, whether it’s positive or negative. Allowing the dealership to create subsections of data to look for better trending aspects of their call monitoring.

Conclusion.

Both CallRevu and DealerSpecials CallWatch monitoring provide the dealership with the opportunity to monitor calls, with dynamic reporting and real-time alerts. However, if the dealership is looking to create a viewpoint of the entire dealership and not just the negative calls, and have a constant guidance to their call tracking capabilities, there is only one standout product; CallWatch.

For more information on today’s standout, visit DealerSpecials.com

Recently, I found myself inside a dealership for personal reasons; I was purchasing a new car. However, and I normally do not speak in the first person, I found myself being spoken to about political beliefs, and even worse so, I was informed as to the personal beliefs of the salesperson, and the sales manager. It took less time for me to decide to leave the conversation, and the dealership, than it takes me to decide lunch. However, it does pose the question of, if it’s alright to converse with others in the dealership about the upcoming election. The answer to that question, is obviously NO.

America may be in one of the most polarized times in its electoral history. America may also be in one of the most hotly contested elections in recent decades, splitting lines between parties and splitting parties within themselves. However, ANY talk of this election, or any election for that matter, should not be discussed inside the dealership. While speaking with other dealership personnel about politics should already be frowned upon, discussing it with the consumer should be absolutely nonexistent. This type of conversation can lead to not only an unstable work environment; such conversation can lead to the loss of a sale.

Conversing about politics with personnel creates divisiveness among the staff.When coworkers speak about politics, including this election and their candidates of choice, it creates an informal and dislikable environment. This type of conversation can not only create rifts between employees, it also can affect the management as well. People begin to think less of others when certain personal issues are voiced, and this can lead to one of many negative outcomes. For instance, if two individuals go to lunch and come back sweltering in anger because they find themselves on two separate ends of the political spectrum, they may not be able to work well together again. With this election separating the parties to such a drastic end, it is not unlikely that such an event could occur. If employees are not able to work in a team mentality any longer, it can affect the entire dealership and how it grows before, during, and after the election.

Speaking about politics to the consumer can lead to a lost sale, and a negative review. This is the key, because no dealership wants its employees to bicker about politics, but moreover no dealership wants to lose a potential sale. ESPECIALLY not because a salesperson informs the customer of their personal political viewpoints. When a sales staff member decides to inform the customer of their beliefs, especially in this election, they have only a 33.3% chance of hitting a common ground. I say this with the idea that out of 3 people, 1 will pick one or the other party, and 1 will be undecided or not bothered. No matter if the customer has the same views as the salesperson, the customer did not enter the dealership and speak to a salesperson to speak about personal viewpoints, they are there to purchase or lease a vehicle. Simple. In addition, consumers rely on reviews to make their initial decisions, and when politics are involved, for or against, the consumer is far more likely to review the dealership, negatively. Any personal ideologies must be kept at home, in the car, or at the specific candidate’s rally and nowhere else. Losing a sale to a competitor is tough enough on the dealership, but losing a sale due to employee incompetence is unacceptable.

No matter the viewpoint of the dealership’s employees, left, right, middle, it doesn’t matter. Political views are not sports teams; they have a drastic effect on what people think about others. Therefore, ALL conversation pertaining to politics or this election, must not be spoken about in conversation with personnel and especially not with customers.

This summer, Beepi, along with the Harris Poll, conducted a dealership survey attributed to the American consumers’ attitude towards car dealerships. This survey was sectioned off into a wide range of demographics. This included millennials vs. seniors, men vs. women, and parents with children vs. parents without children. The results were surely going to be somewhat negative, given the previous year’s attitude towards dealerships nationwide, however these results are more than astounding, they’re absolutely horrible. But why is this still the case with all of the different methods to connect with the customer? And also why is this possible with the creative abilities that can be utilized in advertising and marketing means? There still lacks an ability in many dealerships to adhere to the current times and what that means for the automotive industry. By looking at these statistics, the dealership marketplace can be modified in a fashion where consumers feel more of a “want” when it comes to shopping for a vehicle, and no longer dread having to step inside those doors.

•   More than three in five Americans feel they’re taken advantage of when shopping at a car dealership (61 percent) at least some of the time, with 87 percent of Americans disliking something about the process.

•   56% of those aged 18-34 would rather clean their homes, 34% of those aged 18-34 would prefer to wait in line at the DMV, 24% of the 35-44 demographic would rather get a root canal.

•   Roughly two in five (42 percent) stated they would be comfortable purchasing a car online without a test drive if certain assurances (like a money-back guarantee) were in place.

•   33% of women feel they're being spoken to disrespectfully at the car dealership.

•   Millennials, 62% women and 50% men, feel pressured by a dealership salesperson into buying something right then and there.

•   80% of those with children under 18, and 71% of those without children under 18 in their household, strongly dislike negotiating with a dealership salesperson.

These statistics paint a picture of the dealership in the minds of the American consumer; an awkward and frustrated picture. This doesn’t have to be the case when it comes to the mindset of the customer though. There are tactics ready to be utilized that can change the consumer’s attitude, in large numbers and one-by-one. It’s up to the dealership staff and the management to adapt and to improve their overall reputation.

Marketing and advertising should be current and up to date. Without this update, the dealership is cutting its legs out from under itself. Starting with the dealership’s website. It should be unique, yet modern. A standard dealership website, which looks like the website of a local competitor will not suffice. The website should be responsive across all platforms, have professional photography, and have a layout that walks the consumer down a path, comfortably. Website videos, commercial videos, any videos, MUST be high quality. In addition, the “content” type of these videos is crucial. Many dealerships believe that the videos of old, the "shout at the consumer” type, are still the concept to follow. This couldn’t be less true. Staying current to the trend of a simple and clean advertising strategy, will pay dividends. Yes, the dealership will see an increase with a type of crowd that is attracted to the old style of advertising, but they will fade away. So in the future of videos and commercial campaigns, if the dealership has a choice between creating the “sale, sale, sale” mentality of videos, or not creating anything, pick the latter.

The method and the means in which the sales personnel contact the consumer is crucial. When contacting customers and leads, there must be a mentality in how the conversation is created. A relationship is being built, and in that building process the consumer doesn't want to be “sold”. Additionally, and possibly the most important aspect of contacting the consumer, is when and how the contact occurs. Using your CRM, you may be able to specify when it is best to make contact, and across which platform will work best for that individual. CRM’s that use Artificial Intelligence, algorithms, and social media aspects of each consumer, provide the sales staff the ability to not only make contact, but more importantly to make the contact when it will not interfere with the consumers’ schedule. As well as on a platform they will be happy to communicate through. Because, when the consumer is provided with a respectful means to communication with the dealership, their attitude towards that dealership will not be harmed.

Sales personnel are the best opportunity and the worst liability for a dealership. This is key because no matter who you ask, the statistics listed above will not change with the current system. The persons surveyed are not complaining about the front desk secretary or the F&I manager, they’re main complaints are with the sales staff and how they act towards the consumer. This sales mentality of sales personnel has the ability to change, and it must do so to survive. There are plenty of highly recognized dealership sales trainers in this market, and they’re ability to teach the sales staff procedures and different methods of communication for a positive customer experience can be incredible. However, any training or belief that this market will thrive with old sales techniques is utterly false. What worked in one decade doesn’t work in the next. The results of the Millennial generation and their impact on sales help to provide a pattern of what does in fact work. Informing the customer is a trend that will stay current, and involves more communication to explain the vehicles and pricing information, and less communication coming off as “selling”. It may come off as ridiculous to many inside the dealership, but these influences change tides in different markets, and the tide has come and gone on the old techniques of the sales professional.

With an uncertain future of online vehicle shopping lurking near, the dealership marketplace is in need of recognizing what doesn’t work, and changing to accommodate what does. If this doesn’t happen, any dealership lagging behind will be left behind. The need for modern marketing and advertising, proper communication methods, and an updated sales strategy, will be the key to resolving the consumers' belief in a dealership, and/or all dealerships. This is an industry that CAN accommodate a change, no matter the size. The only element holding this change from occurring though, is the dealership itself. The consumer market is pleading for a change, it’s up to the dealership to listen.

Throughout the dealership industry, customer experience is evolving. With this adjustment in the market of customer satisfaction, dealerships have been put in a position of choice; adapt or be left behind. There are certain factors that have led to this, and these have dealt a major blow to many stores that refuse to take the steps necessary for customer experience survival. Whether it be the Millennial Generation, or the digital abilities that lay at the fingertips of anyone at any time, a trend pattern begins to appear, one in which the dealership can utilize to connect on a greater scale with the consumer. Using these patterns can help to create a step-by-step guide that can help the dealership increase the customers’ experience.

A customers’ experience within the dealership walls should be exciting and imaginative. No longer are dealerships allowed to forcefully place vehicles sporadically on the floor, with little or no disregard as to how the layout will affect customers. This can be seen throughout the market, with a very large percentage of stores redesigning their showrooms to better suit the customer’s needs. Within these new showrooms the vehicles become part of a story, some of which may include some sort of “scene” to provide depth to the vehicle and its interestingness. This creates just enough, but not too much, comfort. This allows the consumer to put down their guard enough and think more clearly, and less defensively, as is the case with so many customers in shopping for a vehicle.

Digital abilities should drive the customers experience from A to Z. Obviously the digital aspect is at the consumer’s fingertips in researching vehicles, however, this trend should continue during the customer’s time inside the showroom, right through until the point of sale. Using a tablet, the salesperson must be able to reference rates, monthly payments, and even paperwork. Whether it’s the accessing of the dealerships’ CRM, or having the customer sign documents, having a mobile ability from start to finish of the transaction, provides an essential experience that will make the dealership consistently popular and bring in more leads. In turn, selling more cars.

Using a transparent approach to selling cars will always increase the satisfaction that the customer feels. An authentic behavior towards the customer gives an allowance of gratitude. This applies to every aspect of the customer’s time spent on the lot. Pricing can be the most important approach in this subject, and sales staff MUST adhere to a single price approach. When the customer is given a number, and that number continually gets worked, it creates a feeling of dishonestly about what the actual price “should” be. A simple method to successful price providing, again simple, is to offer the best price first and upfront. It may scare some away, with no haggling involved, but with generations such as Millennials it will close more deals than many would think possible.

As with a single price approach, a single salesperson selling method is crucial in the customer’s experience with the dealership. This may seem odd to many staff, but when multiple people become involved in the sale it creates a gap filled with discomfort for the consumer. By the time the customer has reached the desk, they have most likely created some sort of relationship with the salesperson, through test drives and/or multiple contacts in the decision process. This relationship should be utilized to push the sale through. However, when the salesperson brings in a manager, and a finance staff member, the customer can become overwhelmed and even patronized. With the proper dealership tools in the hands of sales personnel, these staff members can function entirely without the need to involve anyone else; increasing the customer service for many customers.

These are four points of reference in what customer experience can become, but it doesn’t end with these. There are a multitude of references and changes that a dealership can make to better the consumer’s experience before, during, and after the sale. As mentioned above, with so many Millennials changing the way cars are being sold, they are a target market that has created a need for customer experience to be as high priority as possible. When the dealership succeeds in providing the best experience for a consumer it will pay off in a multitude of positive reactions. The evolution of “experience” being a necessity in purchasing a car is evolving, and those who adhere to this change will see results, but it’s the dealerships who stay stagnant that are worrisome. As with everything in this industry, change or be left behind. Customer Experience is no difference.

The dealership market is changing. A younger generation is growing in the management side of dealer operations, and with that comes a new found growth mentality. While many dealerships are doing well, and have shown a constant growth pattern quarter after quarter, the obvious question that appears would be to ask how long this growth can sustainably continue. That’s not the question we’re going to answer today. This isn’t the most important question. Instead there needs to be a deep dive into what can implode a dealership from within; large growth that comes too quickly. If a dealership were to double in the number of leads and traffic, tomorrow, could it handle such a growth? There will be many who read this who believe they hold ample room for a sudden increase to become a sudden growth, however without certain procedures and proper preparations, a dealership cannot handle a growth of any large size.

Taking a closer look at these key functions will help to better equip the dealership for the eventual growth. Because let’s be honest, does a dealership really want to stay static and continue to sell the same number of cars year in and year out? No. This is an industry of ever-changing itself, one where each dealership and automotive group strives to increase its hold on its market. This is why the automotive dealership industry is unlike any other. There are a few key functions that the dealership must hold before a sustainable growth in leads and traffic can be taken into consideration. It begins with your marketing efforts, holds steady with your dealership management tools, and closes with your staff. 

Dealership marketing efforts must show clear and concise results for a growth to be handled properly. One of the largest problems that can happen inside a dealership is to have a growing number of leads fill the time of personnel, and to have those leads be poorly rated. This is why the need for proper reporting and attributing models must be set up by the vendors that the dealership uses. If your sales personnel are running in circles tracking down leads that actually have little interest in purchasing a vehicle, but your vendor claims they’re “hot” leads, there is a massive and problematic issue in place. Up to date and CLEAR reporting modules must be in place from EVERY vendor used by any dealership. If the dealership has a proper attributing model to leads that are coming into the dealership, no matter the avenue they take, growth will become more attainable in any manner.

Dealership management tools must provide an ease of use and a clear user experience. One that takes the effort out of the users hands and gives the sales representatives an unblocked pathway towards the sale, especially if the dealership’s traffic increases exponentially. The dealership’s CRM will be at the heart of this, and should hold a few key functions to prevent any loss during any type of growth.

1. The CRM should be shifted from the desktop PC environment to a truly mobile and responsive platform, one in which the sales representatives can utilize through the use of iPads and tablets.
2. Algorithms must be used to focus on a customers' true ability to purchase. This should include multiple methods to lower payments, including data from the consumers’ history that expands more than just through customer equity.
3. Target marketing within the CRM with an analytical focus on the consumers’ contact methods, including dates and times most likely to be available.
4. Increase in data hygiene.
5. All-in-one desking tools, and paperless showrooms, allowing the customer and the salesperson the ability for a faster and easier process.
6. The use of Artificial Intelligence.

Dealership sales representatives are the final, yet important, function in creating a growth model ready for a sustainable increase in traffic and sales. All sales representatives must be trained properly in not only the CRM and dealership tools, but also in how to provide the best customer experience. If a salesperson cannot provide the essential experience to the consumer, and has an inability to function alongside the dealerships CRM, unfortunately, they should be replaced. Successful dealerships thrive as a whole, and to succeed with a large increase in sales and traffic, the need for a complete “unit” is more important than ever before. The all-for-one mentality may have driven many dealerships in the past, however this time has passed, and the entire dealership now must work together, or risk failing when an eventual rise in business comes through the doors.

Exponential growth is the dream of many dealerships across the country, but can these stores handle such an increase properly and provide the level of customer satisfaction that is needed to keep such an increase? Unless a methodology is set in place and steps are taken, the chances of succeeding in such a growth will prove to be near impossible. Utilizing a dealerships marketing efforts, providing dealership staff with an advanced CRM, and hiring and training staff that will help in the growth of the overall dealership, is the only way that any dealership will stay current and survive when a large growth arrives.

Amazon. A giant in anything it sets its sight on. Now though, Amazon has decided to break itself into the automotive market, with excitement following its every move. Amazon.com, Inc. is launching a new automotive service geared toward car buyers. This new service is another sign of the company’s power, and its ability to structure its reach intelligently and proactively. The new service, dubbed Amazon Vehicles, will provide online vehicle research, enhanced vehicle insight and opinion, and reviews. This new move is telling however, because what Amazon is planning on doing next will be the most interesting. For now, focusing on what Amazon Vehicles will be providing, and what existing companies they will be competing against, is the most interesting fact of late.

For the near future, Amazon Vehicles will not allow consumers to purchase a vehicle, or at least the current model will not allow this. Not to say that in the future Amazon will find the system that works for such an online ability, one that allows a complete front to back purchase of vehicles. The new platform however, has a plethora of abilities. Users of the new system will be able to utilize an entire community of research tools to better decide their vehicle of choice. In this platform, content will be able to be broken into different sections according to models, changes to existing models, value, and the obvious overview and features. One exciting new feature is the social media element that will be engaging more real life users than ever before. Using social media, Amazon Vehicles will allow users to upload videos and photos of their vehicles, and to share that media with other users. In addition to uploading, the users that utilize the upload feature will be able to answer specific questions relating to their car. All of which will be easily accessible in a way to compare vehicles.

This on its own is a very exciting step for Amazon as a whole, however what could become of this platform is the true question to ask. Is amazon simply doing research and development in its quest to jump into the online car buying process? Possibly. For the time being, this model of Amazon’s new platform is doing well to compete with other similar websites, those being AutoTrader/KBB, Edmunds, and Cars.com. However, TrueCar is widely believed to be the next victim of Amazon’s reaching power. An example of this “worry” by investors was seen in wake of Amazon’s announcement; TrueCar’s stock dropped almost 14% in the 3 days following Amazon’s release. While this may be an issue for the giants in the automotive research market, what is the most worrisome is if Amazon ever decides to take it one step further. From car research to car buying.

Amazon Vehicles could not only disrupt the car research model; it eventually could disrupt the dealership marketplace as well. If Amazon point their new platform in the direction of dominating the automotive marketplace, both dealerships and their consumer will take a completely different outlook on Amazon’s automotive presence. For the consumer, it could provide a no-hassle and no-haggle car shopping experience, one that TrueCar is hoping to hold onto at the moment. On the dealership side of the equation, profits could see a dive depending on how far Amazon take this. Automakers could be affected with Amazon’s enormous following, and be forced to meet certain prices that “the people” demand. Out of all of these scenarios, only Amazon know where they will eventually take this platform.

Amazon have an opportunity to create a Trillion Dollar revenue stream with Amazon Vehicles. Can the automotive industry keep going on its current path? Time will tell. However, the simple fact is, whatever Amazon decides to try they will succeed in, one way or another.

Most dealerships still make their ad buying decisions based on a traditional ROI report. The problem is, these traditional reports are little more than smoke and mirrors. An ROI report assumes that there is a precise and (importantly) exclusive connection between a lead and a deal. Which is ALWAYS true, except in the overwhelming majority of cases. Why then do most dealerships determine which lead provider brought them a sale when it’s reported through a broken system? With so many factors diluting the report it can be difficult for many dealerships to pinpoint the exact source. This makes it nearly impossible to better their future lead generation, and most importantly, where the money should be spent.

Most customers submit multiple leads through different sources before they buy, and that collection of leads influences their buying decision. Let’s start with an example. Jeff submits a request through a lead provider, then comes into the dealership, and takes a test drive. Jeff waits a week, calls in and asks about another vehicle on the lot. Jeff then submits another lead through another lead provider, and comes back and purchases. While Jeff may be indecisive, that’s not the issue. What is, is what lead provider should get credit for that lead and most importantly how to pinpoint the source in the first place. 

With that said, every deal WILL get an ad source posted for it. However, that creates a false narrative and begins to drive ad funds toward lead providers of which may be falsely recognized by skewed results. Analytical reporting through a dealership’s CRM, the “Ad Source ROI Report”, is the most common function to determine which lead provider resulted in lead generation. But with all the diluted information inside these reports, they need to be reconfigured to better function properly. ROI reporting working in tandem with the CRM analytics can have the ability to provide a separation between what is determined a TRUE lead source and an UNKNOWN source. Such technology can show the true and proven lead source independently from the entire grouping. For instance, if the reporting shows 30% true sourcing separate from the remaining and diluted 70%, a stronger ad source targeting campaign becomes available to the dealership. This is done also by targeting the previous 3 months rather than the standard 1 month. Doing so provides the dealership the ability to identify TRENDS & INFLUENCES rather than the randomness that is attributed with looking at only 30 day reporting.

Another large cause to the true unknown ad source, is employee based. This creates a conflict of interest with the results, to better benefit the department associated with the ad source. Remembering Jeff from above, if he walks in on Monday and then submits a separate lead on Friday, a traditional CRM report can be altered to better suit the internet department, even if he was a “walk-in" to begin with. Basically, a traditional CRM ad source report gives the power to employees, who by nature will be bias towards themselves and their department.

For all the reasons and so many more, it is greatly important to know how the lead was influenced and who/what influenced them. Basically, if you have an ad source that is the first lead on exactly ZERO deals, but the second lead on 50 deals, is that ad source useless? Surely not. They were an influencer. Maybe even a closer. So if customers buy based on the total influence of a collection of leads (and they do), dealerships should be investing in INFLUENCE (and they don't). You need an introduction. So the first lead "in" on a customer matters. But most people don't get married on their first date.

Assigning leads, a core responsibility of a sales manager. Simply put however, it can be a hassle. Lead assignment requires a great deal of time and energy by knowing the who, what, where, why, and how, for every prospect that funnels into the dealership. This will always, because of human error, have mistakes that occur. A groundwork of rules must be set up to better govern the process, otherwise no dealership will handle them properly. But is this enough? In most cases, NO. So why then do we not look at Lead Pools rather than individual assignment as a means to success? Let's do just that.

First we need to look at the basic rules a sales manager in assigning leads. They must allow only truly active salespeople to take the leads, have time limitations set in place, avoid overloading employees, and being "fair". However being "fair" is looking at the dealership by individuals, and not as a whole. The only success that matters is the entirety of the dealership. Then and only then will all individuals "fairly" be triumphant. There are many who have conquered these steps, but again as with anything, human error will have an adverse affect on any rules set in place. This is why the dealership's CRM is so very important. The CRM will help control the pool of leads that come in, and can have guidelines and restrictions for the sales manager to work with. But no matter how well a dealership believes it's CRM is helping in its lead assignment and management, most likely, it can do MUCH more.

A dealership CRM must perform a few strategic actions to succeed in controlling leads that enter into the dealership.

• Perform the concept of a Lead Pool. Customer ownership allows leads to fall through the cracks, however, with lead pools it's on a first-come, first-serve basis. This type of function allows ALL incoming leads to become readily available for all sales personnel, creating an atmosphere where the LEAD is the center of attention and not the salesperson.
• The ability to set Lead Response Reserve Times. When you think of lost leads, think lack of response time. Why endure the constant frustration of losing leads to minuscule issues? Setting a reserve time allows the salesperson a designated amount of time to work on the prospect, otherwise the lead will be placed back into the Lead Pool for other dealership personnel to have the chance to work on.
• Settings that allow for a Minimum/Maximum limitation. Like it or not, salespeople will hog leads. Having the ability to set the number of leads salespeople must have, as well as the maximum number of leads he/she is allowed to have, will create that "fairness" that traditional lead assignment tries but fails to establish.

Having certain intelligent functions in place in a dealership's CRM will have direct results in lead conversion. CRM technology that allows the sales manager the ability to set in place the functions that work best for the specific dealership. From there the software can take care of the rest. With a plethora time saved for the sales manager, they are able to concentrate on the dealerships bottom line. Because let's face it, when the dealership succeeds, so do the salespeople that we strive to be "fair" to in lead assignment.

When you think of customer ownership and customer abandonment both seem drastically different, but in the dealership marketplace they are all to often tied together. Take customer ownership: Bob gets a lead, and will forever own that lead, that lead is tattoo'd with Bob's name. Then we have customer abandonment: Bob takes a lead, but then Bob takes a vacation and the customer comes in. Bob's not there and the customer hears “I’m sorry, we can’t do your paperwork because Bob isn’t here, but he’ll be back on Friday. Come back then." The customer's information falls through the cracks when Bob leaves, so the dealership is a man down and a sale lost. Thanks for nothing, Bob.

So, why are we still working with the old format of customer ownership when it leads to abandonment? Let's look at why both of these are highly connected, and why they don't have to be a hindrance any longer.

This concept of customer ownership has long been Gospel, after all, 71% of customers say they bought their vehicle because they liked, trusted or respected their salesperson. But it’s the outliers of this concept that have become phased out, and in turn a shift has happened. This is due to three key reasons; lifetime employment is a thing of the past, OEM and BDC Programs ensure MANY hands are touching the customer before and after the sale, and then there’s the Internet. Yes, the Internet. The ability to trove through models, pricing, warranties, and rebates has given the consumer the upper hand and forced the salesman to become more knowledgable than ever about the product.

In many cases these factors have led to the high turnover that has run rampant in the automotive industry. NADA reports that salesperson turnover is 72% for the year 2015, with this number unlikely to change much for 2016. While this number is staggering, it really shouldn't come as the biggest surprise. What should is the amount of abandoned customers it creates. Customers no longer need to rely on the same salespeople to walk them through the entire process. As we remember with Bob, while he may have left,the customer is fine to work with another salesperson, perhaps Tom. The customer has already done their research, they know what they want, and for the most part they'll know what they're going to pay. The question that remains for most dealerships is if they have the right setup to accommodate this customer before they become abandoned.

So what can be done about this issue? Plenty, but not all can ensure a positive and sustainable outcome. You CAN hire a firm that helps dealerships make better hiring decisions using data and process. You CAN hire a trainer to come in and work with your salespeople for a week. But these techniques are not guaranteed, and we have to remember that not everyone can work in the dealer marketplace and you will always end up with personalities that aren't fit for this industry. Basically, you'll be right back to square one.

Every dealership can benefit by using/changing one thing to better themselves on both of these problems: their CRM.

Using a CRM properly and advantageously WILL ensure better sales and create a better customer experience. That is by far the greatest goal every store should have. With a proper CRM solution, dealerships will have the ability to create a better lead pool, keep existing leads, close more deals, and extract more long term customers. In the current fast-paced marketplace, taking advantage of a system such as this offers dealerships the ability to close more leads while never having to worry about losing a customer due to customer abandonment.

As with any possibility of change, it takes time and can scare some away. But the days of complete customer ownership are fading faster and faster, and to prevent losing leads, it's a simple change. You'll be creating a more stable environment for your employees and close those deals that once fell through the cracks when Bob went on vacation.