Sommer's Automotive
Want more Customer Engagement? Try these 5 Things!
As dealerships when we’re looking at our marketing, social media, lead management and customer follow up programs we’re often focusing too often on what our “reach” is. By this, I mean how many customers our message is getting to through – how many people visit our VDP, Visit our Website, how much traffic our vehicles got on XYZ lead generator, how many leads we got, how many customers are in our database, etc.
My argument will be, and will always be, that all of this communication is great. My contention is that our real goal needs to be to get 2-way communication with our customer…thus an engaged customer.
Customers can be in MANY phases of our lifecycle communication, but for ease of understanding I’ll oversimplify it to these 3, with brief explanations:
Pre-Sale – customers who haven’t bought from us, or are just entering the market. This could be just starting research online, just stopping to our store to get information or the customer who has submitted a lead but hasn’t visited our store. This could also be a REPEAT/REFERRAL/SERVICE customer who is just initiating the “research” phase on their own.
Current Sales Prospect – This is an engaged customer, they have visited the store or have 2-way communication after submitting a lead, making a phone call or reaching out to their past sales consultant.
Post Sale – This would be after purchase – what kind of marketing, follow up or customer communication, are we going to maintain? This can include CSI, Anniversary, Birthday or even lease pull ahead/loan maturation reach outs. Could also be a “VEHICLE EXCHANGE” type program, where we are attempting to speed up the customer’s cycle and acquire their trade – for this article, I’ll consider this Dealership initiated.
I’m recommending a couple of VERY simple things to engage your customers, keep them engaged and also ensure that we are able to own this customer for future Service and Sales Opportunities. I know, this is overly simplistic, but I wouldn’t be surprised to hear that many dealerships (some in my own group) are very poor (at best) with these types of concepts…especially with actual non-auto emailed follow ups. I’ll apologize in advance, this is where it is likely to get VERY long and drawn out – hopefully there is enough here to keep your interest!
1. MAKE SURE THEY GET INTO YOUR CRM!!!!
Seems obvious and I hate that it needs to be said, but this CRM is there to be a database and ensure follow up is completed. How many of your opportunities aren’t even making it into your CRM…especially in the “PRE-SALE” phase of lifecycle communication (even repeats/referrals)? I know I have been surprised…Would you be?
2. BE AUTHENTIC, SPECIFIC AND ENGAGING IN EMAILS AND VOICEMAILS
I’m a big fan of doing a couple of simple things to build urgency when trying to get a customer engaged. Contact in flurries AND use all contact methods – call/email/text all in a short burst. I mean, why not use all the tools you have while creating some sense of urgency. Know your message, know your reason and believe in it. Whatever the purpose for your communication, convey it with passion, excitement and urgency. This goes for ANY stage of lifecycle communication.
3. COMMUNICATE YOUR DEALERSHIPS POST SALE FOLLOW UP PROCESS
Know how you expect your Sales Consultants (and dealership as a whole) to communicate with a customer after they purchase. Remember, most (aside from the calls) can be automated. Best practice would be to have a personal email written. Also, don’t forget to include handwritten letters for Anniversaries and include your business card again…this is a NICE touch! The message of these should be thank you, can I help, any referrals and please let me know if there is anything I can do. THIS COULD BE A POST ALL ITS OWN.
4. EMBRACE SOCIAL MEDIA
One of the simplest and most engaging things we’ve done on Facebook is share our customers pictures after they purchase. Have all of your team members like or share the photos (especially the person who sold it) and if they can, tag the purchasers in the comments. This uses the power of the people who follow your page and the reach of their friends too! Also try a boosted post, upload targeted campaigns (service and sales) and really micro target your customer base with the right offers. Maybe you load all of your 2010-2012 Cruze customers into FB with their emails and send them the current Cruze lease special. For Service – maybe you take your whole customer base you haven’t seen in more than 9 months and target them with current service specials.
5. TEXT, TEXT, TEXT, TEXT!!!!
Every customer should be asked for approval to be texted! By the way, there are solutions out there to manage your texting and keep it off of personal cell phones. Give the customer a reason – like I’m going to share with you a quick video of the vehicle so you can remember it…or I’ll text you the link to the vehicle, etc. This keeps the emotional bond between your vehicle and the customer…also, it is far more effective than a call, an email or a mailpiece. I’m including 50 stats about Text Messages HERE if you’re not sold! Text the customer thank you for visiting as they leave…the next day send them a video of their vehicle and say something to the effect of “I think you forgot something here”. For service, imagine how much faster your status check and work approval times would be with texting rather than call/email. Embrace it, it’s not going away…find a way to exploit it and like those who were ahead of the internet game…YOU WILL DOMINATE!
Sorry again for the length of this, I hope you all found this helpful. As always, this isn’t a comprehensive or in depth look on what can be done…just an opportunity to get some thought starters out there and easily implementable solutions to problems every dealership has. If you don’t have these problems, PLEASE HELP US MERE MORTALS OUT!!!!
Sommer's Automotive
BDC, as easy as 123
Yes, I know it’s a Jackson 5 song and yes, I know that a BDC isn’t the easiest thing to launch and manage at our dealerships. Below you’ll find the 3 Main Steps and some thought starters for each topic, hope this helps!
***DISCLAIMER – what is listed below is by no means an all-inclusive and exhaustive list! I know we have an educated and high performing site here so I’d like to encourage engagement and responses with what your Dealership does (that isn’t on this list) that you feel is vital to your performance!!!!***
- Who is responsible for:
- Responding to the leads
- Managing follow up Process (schedule and templates)
- Managing results
- Determining and conducting training / coaching needs
- When and How are we following up with our customers/leads?
- Know what your follow up schedule will be
- What forms of communication will you use?
- What technologies would we like to incorporate?
- What do our Emails look like?
- How long will we be following up for:
- Phone Ups
- Internet Leads
- Chats
- Life cycle communication
- Post Purchase follow ups/referral asks
- Lease expiration
- CSI related (service and sales)
- Equity position
- Determine what you want the “Tone” of your message to be as this needs to be communicated and transparent throughout your communications and marketing.
- Are you lowest price?
- Are you best service?
- Do you offer free oil changes?
- Are you transparent in pricing?
- Do you have the largest selection?
- Know what your follow up schedule will be
- Train, Implement, Measure and Hold Accountable
- Train
- The expectations (follow up schedule)
- The skills (email and phone skills)
- Train the systems (CRM, Chat, etc.)
- Implement your processes
- Measure and Track your results/performance (minimum)
- The number of leads received and Appointments Set/Shown/Sold
- Conversion Percentages
- % of Leads converted to an Appointment
- % of Leads converted to a Sold Unit
- % of “Shows” that end up a Sold Unit
- Response Times
- Hold designated responders accountable to meeting the expectations and performance
- Train
I know this seems like a lot, but these are the basics that need to be done, planned for and implemented to have a successful BDC/Internet Program. Now, this won’t yield you record breaking results – but controlling these variables will get you respectable results, with manageable processes that you can track and rely on the outcomes!
For those of you who want to have an Above Average BDC, you should think about the items below:
- Goal Setting – Daily, Weekly and Monthly Goals
- Track them, update them, coach to them
- Pace them and make tweaks in live time
- Start considering some more advanced metrics
- % of leads contacted
- Template open rates
- Template response rates
- Compare lead performance by source
- Used vs. new
- Ongoing Training and Development
- Once someone is “good” they’re skills still need to be refined and expanded, never stop finding ways to improve processes, templates or skills (phone/chat/email)
- Be different/innovative
- Know what dealers around you are doing and find a way to be different
- Explore and embrace new technology (personalized videos, creative email templates, new lead generating sources and methods)
- Live and die by your “Why buy from us” reasons
- Re-evaluate regularly
- Monthly, Quarterly, Yearly
- Make changes and improvements on a schedule
- Look at what is working and what isn’t working
- Mystery Shop
- Learn new things
19 Comments
Kelley Buick Gmc
Brandon, you are spot on with this blog, I am in the process of "going back to basics in my bdc" this will help a lot
Sommer's Automotive
Mark, thanks for the feedback! I hope others find it helpful too! Let me know if there is anything I can do to help out. I'll actually be in Pensacola in October.
Automotive Internet Management
Great article on things that should be looked at, but unlikely any dealership could even do half of it. What BDCs make happen in outbounding and appointment setting results, they miss in the inability to negoiate with educated buyers (increasing crowd). In the time it takes to connect an educated consumer with a decision maker at the store via a BDC, you will have lost the sale, to the integrated product knowledgeable staff, thats closer connected to the sales managers at the store. BDC's work but are not any better than doing your sales staff training correctly. BDCs add expense, and are very rarely doing only inbound leads, which means they are always in over load.
AutoNation, Inc.
Brandon - you and William both have valid points. Today's online buyers are starting to expect more from the dealership contact than simply scheduling an appointment. I've built, grown, and rehabilitated BDCs across the country for dealerships of all shapes and sizes. The cookie-cutter approach does not work. A good BDC will have a solid escalation process for those online shoppers who want to go beyond 'setting an appointment' over the phone/internet. That hand-off must happen on that one phone call, which means there needs to be a decision maker in the room ready to take over the customer. I would say that to this day, a MAJORITY of the online shoppers in most markets can still follow the appointment process. But over 30-40% require more. Those dealers who do not have a solid process for accomodating, will lose their business altogether.
theBDCtrainer.com
Great article Brandon.
William, I absolutely agree with your statement that BDC's work but are not any better than doing your sales staff training correctly, however, this is a perfect world scenario and we don't live in a perfect world. Usually one or two will be good and the rest will be mediocre at best. More often than not our sales staff do not get trained correctly on these efforts and don’t have the appropriate management to support the ongoing needs for this or simply don't have the time for said tasks.
I also agree there needs to be a product knowledgeable person/someone who can go into more depth in today's modern BDC who is capable of TO'iog and handling a more educated buyer. With that said, even if 30%-40% of consumers fit this consumer model, and I personally feel that number is quite high, the majority of buyers still can be appointed through a traditional BDC and therefore the people fielding these opportunities should be focused on this majority. There is value in NOT fielding all opportunities with your front line BDC reps that are NOT capable of negotiating and product knowledgeable, but there needs to be people in place to protect the opportunities for the “minority” customers that require extra handling.
Windsor Nissan
Brandon, great blog! I'm new to this site and found this Basic BDC blog very helpful!
Sommer's Automotive
Everyone, thanks for the feedback.
@William - I agree that we, as an industry, need to make sure that we're matching our customers needs/expectations with our actions. If I need to talk price and close the deal over the phone I will - my BDC Reps all have their sales licenese. Also, we're not afraid to turn the lead over to a more capable party if/when necessary. The "standard" approach of the BDC simply is not the best model for most dealerships. The concept of someone doing long term follow up and implementing a constant process to supplement your sales team is not a failure...it's about understanding what the true opportunity is and ensuring that your maximizing on it. Run lean, be well trained and execute!!!!!
Sommer's Automotive
@ Troy - I couldn't agree with what you wrote more! Thanks for summarizing my thoughts!
Sommer's Automotive
@ Colin - thanks, I appreciate the feedback and agree with your statements wholeheartedly!
Sommer's Automotive
@ Roy - glad you found it helpful, I have a couple of other blogs that I posted...let me know if you have any questions or anything that I can help you out with!
Automotive Internet Management
Your perfect world is called the car business, and sales, you can either do this or you cant. Interesting that someone can NOT train their sale staff but CAN train their BDC. Contradiction isnt it if they are BOTH sales staff? Heard the dont have time excuse most of my training career, its the most common, and unacceptable. Selling educated consumers is more than product knowledge, it also requires deal finance understanding ect ect. Your position, lacks reality
theBDCtrainer.com
Good Morning William! I agree that selling to an educated (or uneducated consumer for that matter) requires more than product knowledge. My point was simply a well-run BDC has someone that can to/escalate calls for in depth product/finance needs etc when needed.
The goal of a BDC, however, is not to sell. It's making appointments that show. Different skill set.
Sommer's Automotive
William - I agree...the line between sales team and BDC is too black and white sometimes. Our goal in the BDC is engaging the customer and helping them proceed to the next steps - regardless of how that is or who it's with. Training in the BDC can be controlled...because our focus is on what I've listed above...and this is still the majority of the leads we encounter.
There are leads and circumstances that are best handled by a Sales Consultant...and these circumstances it's important that there is a process in place and an understanding that they should be in the hands of the most capable.
I'm not an advocate of a BDC that is wholly separated from the Sales Floor...I'm an advocate of a BDC that is an extension of the sales floor with no clear cut differences. We close plenty of deals each month over the phone, over email, etc...through working the #'s from the Manager or connecting our prospect with the right salesperson. Also, I agree that training in this industry is the biggest opportunity...and if a dealer wants to spend money on the best ROI, they should look at training their team!
As a net/funnel - the BDC's job is to engage the customers and get them responding...while keeping the funnel filled with more opportunities. We ensure that communication is made, that connections are followed through upon and close the loop.
A sales force should be a BDC and a BDC should be sales force! With each having their specialty - BDC= generating business for the funnel and the Sales Force = working their past customers/referrals and the leads that come in. It's 2 special forces with clear cut goals and marching orders.
The 2 additional salespeople we would need to handle our IB Calls and Internet traffic - would cost more than our BDC department. Our BDC Department is averaging 27 sold vehicles through our department on an average of 94 sold vehicles/month. 99 Set appointments, 66 Shows, 81% Show Rate, 33 Sold with over 15% of internet leads closing and over 20% of phone leads closing. I'm confident that we're producing as much, if not more business, than the other 2 sales people we would require to be "fully staffed" .
Automotive Internet Management
Not a different Skill set, and to say setting an appointment and selling are two different skill sets sounds like someone trying to sell that idea, and its ABSOLUTELY not true. In 2016 to say that a sales person should not interact with their clients because the clients have move to techinlogical communication methods just handicaps the staff. BDCs are relics of the past best kept for areas other than product selling events. I have dealers with them, but they just dont want to put the work in to training thier staff to do their jobs, or replacing them as any other industry would if they didnt. Math given is the about average but by no means high performing. Many stores that get it push this same math (often better) with the sales staff doing it. If anyone has run a store, been accountable for a financial statement, then staff cost control should matter. High volume stores running 400 plus sales units a month, can use a BDC for Data base mining , TIMs leads, sold follow up, or possibley survey work, not mention the massive amount of non-sales related calls inbounding that are often mishandled. We can debate this all day, either way will work as anything will if managed well, and it sounds like a few on this do manage well. Different subject about whats the best way, which is just math. Back to work, no more Blog time in my day.
theBDCtrainer.com
...Nobody said "a sales person should not interact with their clients because the clients have move(d) to techinlogical(?) communication" .#falsequote
Sommer's Automotive
How hard are we really working?
It's important to understand who is actually trying hard to improve, evovle and stay in front of ever changing market we work in. I'm as big of a culprit as anyone, so don't take this as me pointing fingers without taking some of the blame.
There are so many products, "tricks", solutions and problems in our industry that it is incredibly easy to lose focus on who we are and who we want to be. We start swimming in circles...working hard to stay in the same spot rather than working hard to progress.
Just a couple of things below that help me self assess and ensure that I'm moving ahead, not in circles:
- Know your trends and have goals - where was I? Where do I want to be? What am I doing to get there?
- What am I doing, how am I doing it? - Try to determine what direction you're going to go...where you want you dealership/department to go and put in place the "steps" to accomplishing it.
- Keep your "To Do" list short - Put only the most pressing and important items on your list...only add the "minor things" to it once you've knocked the bigger things off of it.
- Get engagement from other "leaders" - Very few of us actually have the opportunity to implement or change something without it impacting leaders of different departments.
- Measure your impact - Are the changes we're making having the intended impact...if not how can we make sure that they are?
I know the title of this post makes it seem like I think that people aren't working hard. In fact, I think that everyone in the industry (at least everyone who is on this site) actually cares about being as good as possible! I think it's important that as we're working hard for 10-12 hours/day, 5-6-7 days per week that we're getting the biggest bang for our buck!
What do you do to make sure that you're always evolving and growing?
1 Comment
Automotive Group
You can't manage what you can't measure thats for sure..
I try and keep a notecard with me at all times. I will write down about 5 - 6 main things I want to get done that day. No need for tasks and subtasks in a lot of cases. Cause we all know the work that needs to be done to get the thing done.
Great post.
Sommer's Automotive
Is retention REALLY that hard?
I will admit, I haven’t been in this industry all that long, but it seems like we often are victims of over analyzation and miscalculation. We’re pretty good at selling vehicles, just bring me the customer and SHAZAM, let me work my magic – SOLD! Often we struggle at retention, retaining customers and retaining employees seems to be an aspect of the business we are always working on.
The big obstacle that we put in front of ourselves is how do we retain our current business (Service, Sales, Parts) while earning new business? I don’t want to sound over-simplistic, but it really is about listening to and doing what is best for your customer. The concept of retention extends to our employees too; do what is best for them and be an advocate for their happiness and I promise you you’ll see the return on your investment from employees and customers!
If our business truly attempts to take care of the people we encounter in all facets of our business, usually the people will take care of us. They’ll buy more, they’ll service more, they’ll refer more friends/family and they’ll say great things about us on Social Media. These are all things that are important to us. Organic growth, though providing a truly great customer experience is the best money you can spend. Spend it with your customers, spend it on your facility, spend it on your employees and it will be better than the money you spend on any advertisement, program, plan, training or technology.
Our greatest resource is truly our customers and our employees, once we invest enough in them – with quality leadership every aspect of our business should improve.
Simple concepts that win in retention:
- Retention is ALWAYS cheaper than starting over, with customers or employees. Protect what you have, keep them happy and new business will come. If you can’t keep what you already have, why go out and get new business/employees that you’re just going to lose anyway?
- Ask for and listen to feedback. Employees and customers often provide us feedback, some of it we don’t want to hear or don’t care to hear. Everyone has the customer/employee that just could never be made happy. However, if you notice a theme amongst the feedback you’re getting, maybe there is something to the feedback being given…LISTEN TO IT!
- Have a plan, develop it, implement and execute it! We’re really great in this industry about identifying obstacles/objections and sometimes we even overcome them. But how often do we make plans, develop them, implement and execute. If these 4 steps aren’t being fully followed, it’s likely you’re having some fall out somewhere. Have a vision for the business you want to be, the employer you want to be and make sure that you take the necessary steps to get there.
- It isn’t that hard, but retention is never easy! Kind of a contradiction right? Well by this I mean that it isn’t the difficult to implement ideas or thoughts, it is really doing the small things, doing them well and living by them. It isn’t easy, because it’s not something you can fix once and just let it go. It’s constantly curated, worked on and improved upon…this is where it becomes hard for us. We move from fire to fire to fire, and often forget about the previous fire we just worked on!
I’m sure that everyone reading this already knew the things discussed and it’s nothing more than a reminder….but sometimes reading things that we already know is better than learning something new…you know, like RETENTION!
8 Comments
Beck and Master Buick GMC
https://www.linkedin.com/pulse/sales-recognition-finally-comes-back-end-service-center-roger-conant?trk=mp-author-card
DrivingSales
Love this and could not agree more. Sometimes the answers are right in front of us and sometimes we just don't want to see it or put in the effort to change our ways. It's human nature, I suppose.
Keep with the K.I.S.S. strategy - Keep It Simple, Stupi...
Sommer's Automotive
Roger, great link and thanks for sharing again - big fan of your work!
Anne, thanks for the feedback and interaction - sometimes it's the obvious that will have the most impact...not the most difficult!
IncentiveFox
Couldn't agree more. Your customers will tell you everything you want to know and will also tell their friends, family and co-workers everything they want to know and maybe even some stuff you wish they wouldn't but how do you ensure that you get this feedback?
A tool set to inact these processes is probably the most crucial asset of them all, we all know an idea is great but without implementation, it's gonna fall flat on it's face.I'm biased.. of course :) but a review and referral program is one awesome way to incorporate a big chunk of what a lot of dealership's are missing... insight, and not just insight but inisght that is detailed and right from the "horse's mouth" while avoiding the frequent over disection of information/data. If someone's referring, you obviously did them right - if someone has a complaint - something went wrong. The ability to motivate these actions to happen frequently is NOT easy, i've heard an incentive always helps though ;) and then the ability track, navigate and create actual improvements through this feedback is priceless. Also the ability to thank your customers for this is HUGE, I think people nowadays forgot how valuable and appreciated a thank you truly is.
DrivingSales
Great article!
There is another hidden benefit to retention, both employee, and customer. Retention is often thought of as a one to one ratio of keeping one person. In fact, we often quote Life Time Value (LTV) of a customer as the potential revenue that can be generated by one customer and their direct purchases. The unfortunate oversight here is that we ignore the multiplication effect a happy/loyal customer has in referring others to our business.
Numerous studies have proven that before anyone buys they ask their friends who they should go to buy. By retaining happy customers (and employees) we can create a positive amplification of our brand and experience that is essentially free and more effective than any marketing campaign. This fact is exactly why as you mention: "Spend it with your customers, spend it on your facility, spend it on your employees and it will be better than the money you spend on any advertisement..."
Sommer's Automotive
Kristen and Adam, thanks for your input and feedback. Your insights are great, and have given me some new ideas to think of!
DrivingSales
There's an old saying in the car business; "the customer will twll you how to sell them, if you just listen." True yesterday, true today. Apparently they will also tell you how to retain them, again if we just listen. Great article. Thanks for sharing.
1 Comment
LOGAN Keirstead
Accu-Trade Innovative Dealer Tools
How often do you recommend post sale follow-ups? Is email marketing and an anniversary card a year enough to stay top of mind and keep your customer loyal?