The circumstances and situations we continue to face have altered our business practices. But has the way we approach pay plan decisions changed? Arguably, no. 

It is no secret that due to unprecedented inventory shortages, both the dealer and the sales consultant have earned more money in the last two years. And although we know this roller coaster ride will come to an end, are we prepared to face the reality of the situation?

The egregious turnover in the automotive industry before COVID-19 is proof of this reality. Turnover has been a source of concern for the dealer's profitability for several years now. So, while dealers are currently more profitable than ever, this is despite our current dealer approach and philosophies towards pay plans and retention.

Pre-covid, we talked a lot about "turnover" and how to keep the new employees. The "millennial" generation made up the majority of that workforce. While Millennials continue to dominate the workforce, another era, "Gen Z," is entering the market. So the question becomes, "Have we spent so much time having the same conversations about Millennials that we are now unprepared for yet another generation of employees?"

If that question doesn't make you pause for a moment, we have not fully grasped the gravity of the problems we dealers face when it comes to reducing turnover and increasing retention.

So, how do we go about fixing it? That is much easier said than done. As an example, we are still dealing with the same problems. Problems that the new COVID-19 world has now masked. And while having these conversations is simple, making changes based on our discussions is an entirely different story.

More importantly, when we do have these conversations, we must approach them from the actual issues we face. Consider how many people left their dealership and the industry in 2019. How many of those employees quit because of their pay structure? Or, more specifically, how many of those employees leave the industry because of a lack of work-life balance? And the demands that the industry places on the individual? 

Let's face it. If Corporate America is now struggling to get their teams to work in the office, how can we expect sales consultants to work roughly double the hours for less pay and benefits? And while we attempt to address the above issues through new training programs, new pay plans, or the creation of clear career paths, has this had any tangible impact? 

One of the most effective pre-covid retention strategies was to offer "flat-rate" pay plans to the millennial workforce. The insinuation that the new sales consultant was a "product specialist." With the hope of it attracting the “Millennial” workforce. Yet even with that pay plan change, we discovered that retention was still low. Where a product specialist had to sell – in most cases – 17-20 plus vehicles to only make roughly 60k. 60k that an individual with a college degree could easily make working in a Corporate America job. 

So the question is and remains, is simply changing the pay plan sufficient? Or for those who did not do the “Product Specialist” pay plan, is a ninety percent plus commission plan going to cut it anymore? Do we have to adapt some of Corporate America's philosophies when developing pay plans? Have we even looked at how Corporate America develops its sales plans?

And look, even if we adopted a few elements of Corporate America, the most significant challenge that we will continue to face is that Corporate America still has an advantage in that they provide their employees with paid vacations, 40-hour workweeks, and holidays off. So, how can we expect a new generation of employees to work twice as many hours for roughly half the pay? Which would you prefer, working 40 hours with substantial benefits or 80 hours for roughly the same pay and nowhere near the benefits? For those who say “yeah, i’d do it. I am doing it” – that is the exception not the norm we face. 

Suppose we continue to believe that "there will always be Sales Consultants willing to work in the automotive industry," which is the exception rather than the rule. Can we effectively change the way we do business so that when "those Sales Consultants who are always willing to work in the industry" no longer work, we are not left floundering trying to keep the dealership running?

The bottom line: changing a pay plan to induce a behavioral change will change their behavior. But make no mistake, it will have an impact on your retention. We have to ask ourselves if this approach and philosophy can tackle the challenges we will continue to face when attracting top talent. The question of "can we continue to demand that the sales consultant works double the hours of Corporate America with fewer benefits?" is not a question we are going to want to ask ourselves when this becomes a reality we face. 

How has your dealership combatted this issue? Have you successfully implemented Corporate America benefits on the dealer level? If so, has it assisted in increasing your retention? 

Looking back to when I first started in the Automotive industry – fresh out of college – I thought I knew it all. Having confidence is one thing, but coming into any job with the attitude of knowing everything is not the best way to start. A little more than two months into the industry, I switched from being a sales consultant to become a BDC Agent. Not because I was knocking it out of the park, either. But rather, it was because I was not afraid to answer leads or answer the incoming calls. Dealers had a need, and I saw an opportunity.  Sure, I was doing okay (after all – BDC's were something new in 2011/2012), but my phone skills were indeed not where they are today. 

I will never forget the first mystery shop I got from Phone Ninjas. Instead of being eager to enhance my phone skills, I was combative. Now mind you, I still was a "green pea," with no industry – let alone any career experience, and yet here I was – nasty and condescending to the Phone Ninjas coach. Fortunately for me, the Phone Ninjas coach saw something in me. And for that, I am grateful. 

When I say I was combative and nasty, I would spend more time writing emails trying to "debunk" their coaching email/training session than simply taking the training. After roughly four or five bad scores, I got a call from a new mentor who painted me a clear picture. Offering that while you have potential and talent does not mean it gives you the right to be obnoxious and combative. Take the darn training.

I had to ask myself if was really going to throw away the chance of building a career,  discrediting myself because I was "too good" to take the training. 

At that moment, I realized (and thank god) that training had merit, and more importantly, it had a purpose. Not long after, I fully embraced the Phone Ninja's technique going from a 1.4 to score near perfect scores (sometimes hitting that perfect 5, yes, that is the competitive nature in me). Using the technique and taking the training seriously – in part – helped build my career. After the dealership saw my results, it allowed me to build a BDC department for the dealership. At which point, we worked hard – with the Phone Ninja Coach – to train our new BD Agents, where the set rate went from the mid to high twenties to the high forties collectively. 

Once I built the BDC Department, I soon expanded my role and delved into marketing and Business Development, becoming their Business Development Manager. Over the years, this lent itself to working with the OEMs directly, digital marketing, CRM Experience, free-lance writing, presenting key-notes conferences, and developing onboarding guides for dealerships. 

Fast forward, some eight years later, and I still use the Phone Ninja's technique in my new career and everyday conversations. So while I could say "if I could go back in time" and change the past – it is the past. However, if there is one thing to take away from this, it is taking the training seriously. Understanding that while you might have talent, you can always improve your approach and refine your skills. 

Besides, who doesn't want to be a Ninja? 

Have you ever sat at your desk with your palm against your forehead, trying to put together the same old marketing you do month after month? You are not alone. It can be easy to place your vendors on autopilot and follow the OEM's sales and specials – sliding into an auto loop approach to your overall marketing strategy. Whether that's simply adding spend with one Vendor, adding a vendor's product, or hiring a new vendor to create the digital assets. It's getting stuck in this hamster wheel vendor auto-loop that can get you off track. With the mindset of "here's another month behind us." The goal and strategy is, and remains, to connect the dots between all of your vendors, building continuity in your digital marketing efforts. If you are experiencing "marketing fatigue," it is best to take a step back, re-focus, and get to work.

Your Vendor Cannot Do What You Do Not Ask. Connect the Dots First. Approach Your Vendor With A Clear Business Strategy. 

Sounds simple, no? But the truth is so many dealers do not take the time to read their vendors reports or, worse, take the time to strategize with them. And make no mistake, it's not that the vendors are unwilling to do so, either. Vendors want you to be involved, trust me – they do. So while it is the Vendor's responsibility to run the best ad campaign possible, it's your responsibility as the dealer to effectively communicate your breakpoints, business goals, clearly present your dealers brand. Anyone can send out an email blast, create ad campaigns, or POP Marketing. But not everyone can create successful ad campaigns. 

One of the best things you can do for your dealership is to connect the dots on all of the reporting you have and outline the following items: 

- Total Leads (phone calls, form fills, chats, texts, etc.) from each lead source.

- Total Leads sold per each source. 

- Days to close for each source (for multiple leads within a profile, take the averages for days to close; i.e., if the lead comes in and it takes 90 days to close after multiple inquiries, use the averages for those leads). 

• - Average email open rates, click rates, and conversion rate on the click-through rate – outlining the top five email blasts, asking yourself what the promotion was, subject lines, and content. 

-Cost of each lead source (this is not to talk about "acquisition costs" either. That's another article).

Once you have gathered this data, outline it on a whiteboard (or a report), which will give you a better picture of the primary traffic source for leads. The next step is to then review your OEM defector reports. That is understanding which areas in your PMA you are losing the most amount of sales too. More importantly, what is your market share cap not just with your PMA, but as an OEM. With this information – that is "lead source data", it's time to work with your vendors. 

Having a conversation with the facts (data) and a clear business goal will offer a much better strategy meeting with your Vendor. The idea that instead of simply focusing on a month-end report, you are now digging into areas of opportunity based on a clearly laid out approach. That is creating ad campaigns for areas of opportunity. At which point, the Vendor should take the time to review the sales data and other OEM data to better understand your market. Building ad campaigns that are not generic or detached from your buyer. 

It is meetings – strategized like the above – that can reignite your passion, and more importantly, your interest in taking a different approach to your marketing strategy. The stronger your results are, the more likely you are to keep pushing along. Not to mention, it's these trials and errors that build success. I would rather lose two thousand on a campaign – explaining it to the owner that ad did not perform one month, owning my mistake with humbleness than continue trudging along with a vendor who gets average results. 

Bottom Line: this is not saying "forgo" or "remove" all of your vendors, and go into a new strategy blind-folded. This is offering the idea that instead of remaining on auto-pilot, take the time to understand what is working and what your areas of opportunity are. Chances are there are strategies or ads that your competition is not doing. It's those ads that will not just get back on the map, but get you the much-needed market share in your PMA. 

Are you ready to break the cycle, take a risk, and make it happen? Do yourself a favor and work with your vendors! 

Is there a lot of thought that goes into deciding which call to actions to offer on the VDP’s? Or is it a constant free for all, or worse an afterthought? The idea that more is better, where dealers easily have more than five or six different ways for the customer to inquire about a vehicle. Having multiple options for the customer to choose from sounds like a great idea. However, having too many choices can make it confusing for the customer. Not to mention, when you do get the inquiry via the CRM, more often than not, the BDC Agent or Sales Consultant is not aware of where the lead came from. All of which can create an unnecessary breakpoint. Here are some to consider when choosing which call to action to display on your website. 

The Forms Are Not Labeled in the CRM. You Have No Idea What Form the Customer Completed. This Causes Break Points. 

Think about it for a minute.  If the customer completed a form for the sales price (whatever that means for your dealership as each dealership has its own interpretation as to what the sale price is), but the lead in the CRM says general inquiry, what do you think happens? The BDC Agent or Sales Consultant will reach out to the customer asking them if they want to come in for a test drive. To which the customer might ask, “I wanted the sales price.” You might not think this happens, BUT it does. And when it happens, it can and will cause frustration on the customer's end, where the customer was expecting an answer to what seems to be a simple question, really. 

One of the ways to resolve this issue is by contacting the vendor that manages your website. You can have them label the various forms on the website: 

Dealer Website (Parent Label) 

VDP Price Inquiry (Child Label)  

Dealer Website (Parent Label)

Test Drive Coupon 

By labeling the leads with the correct form name, it can have a positive impact for many reasons. One of the most important reasons to do this is to ensure that your team knows where the lead came from! And while we should always offer the same level of customer service - the way we both approach and provide the customer service varies on the situation at hand. Imagine knowing that the customer inquired on the “test drive” coupon. So that when you called them you can start the conversation by first thanking them, but secondly confirming their test drive. At which point, you can confirm if vehicle options are flexible and or whether or not they have a trade. 

In this example, not only did you notice the purpose of the customer's inquiry, but more importantly, you effectively can mold their experience based on what they inquired on. All of which can and will offer the prospective customer a positive experience that is consistent with what they experienced before receiving your phone call, email, or text. On the flip side, imagine if you did not know if they wanted to test drive the vehicle, and your time was spent focusing on “asking for the appointment” when that is already something the customer wanted. And while we might not think that the customer is not paying attention - they are! I mean, especially if they had to filter through all of the loud noise on the website, having gone through more than six or seven different options before contacting the dealership. 

And sure, not all examples are the above.  The point in discussing this is that in order to offer the customer a good experience, we have to resolve any potential breakpoints. One of the most significant breakpoints to overcome is not knowing what the customer is asking, which can make for a really frustrating experience. This is also a relatively simple fix, no? It starts with first making yourself an internal list of the various lead labels. At which point, once you have confirmed the changes with the web provider, and the CRM (making sure they receive the lead correctly, which is most often ADF format), you need to make sure your team is aware of the changes! This will help ensure that when they do answer the leads that they take the time to read where the lead came from! 

Have you taken the time to review the lead labels? If so, has this had a positive impact on your store? 

Week after week, dealers tend to have the same meeting. That is the GM sitting down with each department manager to review where they are at, projections, and things that need attention. Anything needing attention is then addressed individually with each department manager, which seems harmless but can cause tension and animosity. More often than not, it just means that the department managers involved need to sit down and work it out. However, that cannot happen in individual meetings. Here are some of the top reasons to avoid the Island approach and how to have a productive, actionable meeting.

What is the Goal of the Meeting? What's Being Discussed? Did You Give Your Managers Enough Time to Prepare? Or is it A Run Through of Daily To-Do's?

The meeting is often seen as a hassle or waste of time. Knowing that for every minute they are trapped in the GM's office the less money they will make at the end of the month. So to avoid the meeting taking up too much time, they quickly go through the same checklist. Once the checklist has cleared, they rush the door and get back into the lane or on the desk – all while the GM thinks all is good. But that is not usually the case. Instead, there are underlying issues that need to be addressed. Ones that are often not discussed with the GM, but are discussed amongst the employees, which can cause frustration and tension between the various departments.

If You Have A Group Meeting Stick to the Agenda. Give Everyone A Chance. Do Not Interrupt.

The purpose of having an agenda is to ensure that all topics are covered and make sure no one goes down an endless rabbit hole that leads to nothing other than forty minutes of wasted time. That having been said if you do have an agenda, make sure everyone turns in ahead of time what they would like to speak about. This gives the GM the time to review the request making sure it is in alignment with the meeting. If the topic is deemed personal and/or a conversation to be held privately, it takes away the chances of the meeting going from good to bad. Another reason to have an agenda - that is planned - is that it gives each manager a chance to voice their concerns, or questions effectively. More often than not, an argument between departments could have been avoided had there been better internal communication. This cannot, however, be accomplished if the manager is not given the time of day. As interrupting or talking over another manager is disrespectful, it can also show that you do not support that manager.

Do Not Use the Meeting to Attack Your Co-Manager. Not All Issues Need to Be Made Public.

It is no secret that there is a lot of competition on the dealer level. It is a dog eat dog world, but there is nothing worse than bringing your co-worker down in front of everyone else. Especially given that while you might not care for them - what they are allegedly doing wrong might not even be wrong. However, as the GM if you allow the employee to bad-mouth their co-workers in front of their peers it can in many ways send a signal that the behavior is not only allowed, but encouraged. All of which can and will create an eggshell environment. So, if you do have issues with your co-worker it is best to speak with them first. If you are unable to handle it with them directly, at that point you need to meet with your GM.

Bottom Line: Take a minute to get with each one of your managers and allow them to contribute to the meeting's agenda. In doing so, each of your managers will feel like they are a part of the team. Having group meetings amongst management will also help ensure that there is no miscommunication amongst the various departments.

How do you handle manager meetings? Do you review the same agenda each time?  

It is easy to choose the ban-aided approach we know so well in our industry, no? If a vendor's solution can somehow "magically" fix the issue, then it must be true, right? This approach leaves us continually going back to square one, or what we call "back to the basics" - "block and tackle approach." But what if we didn't have to continually go back to square one, slapping one band-aid on at a time? And instead, we focused on the real issue - a crack in the foundation - that causes the breakpoints we deal with? 

One of the biggest breakpoints us dealers face today is handling incoming phone calls, which is a multifaceted issue and comprises the following core concerns: 

● Training processes on the dealer level to handle the incoming calls 

● CRM Integration of the incoming calls is it worth the clutter?

● Management of the incoming calls

● Inbound line tracking vendor

● Total marketing spend dictates inbound call volume, but do you NEED to spend more to get more?

More often than not, we tend to look at the above items with a siloed, tunnel vision approach. Make no mistake, all of these concerns are intertwined, and if one of the above is "broken," it negatively affects everything. Instead of slapping another band-aid to the foundation, looking for a "magical" fix using your phone vendor's "magical buckets," let's, look at each one of the core elements—the most critical being training. 

Training Processes On the Dealer Level to Handle Inbound Phone Calls 

Sure, your phone tracking software might offer "tips and training" on handling inbound calls, which sounds great, right? But for those of us who have managed the vendor side of inbound calls, their reporting, tips-tricks, and training often do not mesh well with your current sales processes. Not to mention, merely relying on a report of "call buckets" does not, by any means, paint the real picture. For example, most call vendors cannot associate duplicate calls. And for those in a BDC or BD Manager role, you often wind up spending more time reworking the reports yourself to get accurate numbers. Numbers that tell a completely different story than of what's reported in the CRM. And, well, you know why - the customer completes a test drive request, and then calls into the dealership. You already set the appointment, but you did not get the appointment according to the phone tracking vendor. So that must mean that your appointment set rate is terrible! So now you need to complete their training courses on setting appointments, right?  

Wrong. Well, partially, but the point is that by looking at it from one angle, you are not getting the full picture of where the breakpoints are hiding. And sure, there will be calls that bombed, and you did not get the appointment. But, taking the time to go through every single "missed appointment" call due to the lack of vendor capabilities is not the best way to approach this issue. And driving home "training" from telephone call analytics on a cornucopia of calls that come from hundreds of other stores doesn't really help MY STORE.

Additionally, this generic training offering is merely an attempt to be "everything to everyone," and as we saw in the late 20-teens, that doesn't work. Sure, many "say" they listen to all your calls, but let's really dig deep into that statement and then transition that into HOW that architects their training for YOUR store? The answer is, it doesn't. 

This is a breakpoint on the vendor side that can do more harm than good. Hence, it is essential to curate your own training on the dealer level to handle the calls vs. solely relying on one side of the equation to handle all of your training. Instead of focusing on "magical buckets" from a one-sided perspective, look at the entire story in the CRM. Using a dedicated training vendor that can connect the dots is not only a best practice; it's the only practice if you really want to drive sustainable results and still expect to get your job done. Additionally, I don't know too many "trainers" working at the store in that capacity with the bandwidth, the tools or the support to drive results. Having said that, do some exist, sure they do. But I'm not talking about the exceptions. I'm talking about the rule. Connecting the dots means they have the whole story, a story that gives the dealer the breakpoints that need to be addressed. 

Management of the incoming Calls 

Getting a text alert for a "bad" call sounds fantastic, right? Well, again, if your vendor cannot aggregate duplicate calls, defining customers who already had appointments, etc. then your manager will be wasting time. Time that could be spent using their CRM to manage and monitor for potential breakpoints actively. Not to mention, taking the extra time to have to go back into the vendor's platform to "fix" the call is not just painful, but pointless. If the vendor is integrated into the CRM, then manage it in the CRM. Make no mistake, it is essential to look at how many calls you are getting, but most CRM's offer a "multiple lead source" report, which can define the total leads by source, "individually." By taking this approach, you get the full story, and better yet, you can work with your teams to address the breakpoints by effective training. And what's actually in the CRM anyway? Think about it, without true and proper training, without effective training, all that you see (even with an API) would be worthless audio files matched up to Caller ID's. Having a fully trained staff actually obtaining contact information the right way means far less management intervention is necessary. How many managers look forward to reviewing those buckets? Or reviewing those alerts for matches? I know I don't. 

The other big red flag with solely using a phone vendor's reports is that I cannot tell you how many times I have seen GM's take away the phone calls from the sales consultants or BDC Agents, and (yes) Sales Managers due to the "reports." This made for a lot of arguing, which led to heated debates on the real issue, lack of training and resources on the dealer level. Simply throwing the new rep on the block into the BDC closet to get phone training in five minutes, or watching another "generic video" is not going to work. Not to mention, let's face it, most sales managers cannot handle incoming telephone calls themselves. This is not about putting anyone down, either. Look, my phone skills were *hateful* when I first started. It took a lot of training and time spent with trainers to get where I am today. If your teams are well trained, armed with solid word-tracking, and phone skills, they will sell more vehicles. 

CRM Integration of incoming Calls 

If your CRM can do this, GET IT DONE. It is a lifesaver. Taking time to manage multiple platforms, all while trying to increase your appointments, is not time well spent. If your phone tracking provider lets you track calls in the CRM (effectively), you can easily manage a seamless workflow. But if you have to take the time to listen to each call, then go back into the vendor's platform to "fix" the call – that is brutally painful. I vividly remember having to spend a good 1-2hrs every night re-scoring the calls so that my teams got paid accordingly, to then have to defend why I "fixed" the call. As if I were on a mission to "fudge" reports. Come on, every "change" made is tracked in most CRM's (check out your audit reports). I still have a headache thinking about it. 

Total Marketing Spend to Increase incoming Calls 

The more you spend – depending on the ad campaign – can mean a significant increase in the total volume of incoming calls. Those incoming calls mean there are more opportunities to sell vehicles. But simply getting more calls does not mean that you will sell more vehicles, and certainly not because they were dropped in your vendors "call buckets" either. For example, if your store is setting appointments at an average of 30%, then by default, yes - you will book more appointments. However, if you take the time to "build your foundation" not slapping band-aids on (using your tracking providers "buckets" and "tips"), you could actually increase your set rate from 30% to 60%. Taking the more laborious approach, time, money, and resources to solve the problem will mean better results. Making more out of the total advertising spend. But spending time working out of "buckets" – with a siloed approach – will not solve the problem, and you will just work yourself in circles, all while creating more breakpoints on the dealer level. 

Bottom Line: take the time to invest in your dealer teams by first training them! Work with a training company that can build a solid foundation. Once your foundation is built, use the tools "together" to enhance your team's performance. The stronger your team performs by having the right phone skills, means less time spent managing your phone vendor's buckets. And instead, you can work with your team on objections, all while increasing your set rate, which means your dealership now has more opportunities to close! As for the managers, make sure they participate in the training too! They cannot manage the breakpoints and areas of opportunities if they do not have proper phone skills. 

Do You Manage Your Training from Buckets? For Those Who Have Trained Their Teams First, What Do Your Results Look Like? 

You can easily run through your PPC budget before lunch if it is not optimized. There are also several critical facets of what makes a PPC campaign successful. Everything from the actual geolocation your campaign is targeting, key-words, negative key-words, headlines, and descriptions, to name a few. The other thing to consider about what makes a successful campaign is as time goes on, your dealership's goals change. Continuing to run the same old ads - simply adding spend - is not always going to increase your results. 

For example, if you need to move the "X" model one month, you should create a Google PPC campaign that reflects this goal. Not to mention, if you have a competitor who is outselling you on that model, then you need to spend more in that geolocation. In addition to retargeting those customers with ads. Where a lot of this strategy planning goes south, however, is either the dealer not reaching out to the vendor. Or the vendor not proactively engaging with the dealer to better understand their needs as they evolve. Either way, it takes continued collaboration to get the most out of your ad spend. 

Given the competitive landscape in the digital marketing arena, it makes one wonder: "what if vendors only paid their digital teams based on the success of their campaigns?" 

The idea that simply getting clicks to the site with a miserable bounce rate is not going to cut it - they have to have hit specific metrics, such as time spent on site and conversion goals. That is how many click-to-call, VDP views, or form-fills completed. The more engaged the vendor's teams are on managing the actual quality of the ad campaign can and will have a positive impact on your results. 

This model could also help reshape vendor reporting, too. While the vendor needs to brand their reporting, it is equally important to be transparent about the content of the report. You will find that most vendors only put the "shiny" numbers on their reporting. Such as Impressions, Clicks, and Click-Rate. And if they do show VDP views, they often do not then disclose how long the customer was on the VDP page. And sure, you can go into Google Analytics and view the campaigns yourself, but how many dealers are actively reviewing their Google Analytics accounts? The other thing vendors often forgo adding total time spent on site, bounce rate, or total conversion goal numbers per each segment: click-to-call, VDP views, form fills, etc. The other key element to consider with your bounce rate is your organic bounce rate (which should be in the low thirties) vs. your "Google PPC" bounce rate. Think about it, if your organic bounce rate is where it should be, but your PPC campaign is in the high to low 80's, and they average the number, you are not getting the full picture. If your Google PPC bounce rate hits the low to mid 80's then the campaign is not performing, whether that is the landing page, key-words, or the relevancy of your campaigns titles/headlines. 

This poses the question: What if your vendors' digital teams are paid on the success of the dealerships campaigns? Could this improve the overall quality of the ad? If their teams are paid on the campaign's success, do you think they would spend more time reviewing and optimizing the campaign? The answer is most likely, yes. But make no mistake, the dealer is just as responsible for working with the vendor! The vendor can only do so much research on your geolocation. As the dealer, you have to understand your market and your core areas of opportunity. There are also several reports available - from the OEM - that can help you outline immediate areas of focus on models you are losing market share on, etc. Lastly, as the dealer, you have to outline your expectations. That's not to say that your expectations can be met - whether that's budget issues, or the ability to execute the strategy - but it does open a dialogue that can help achieve better results. 

How often do you discuss your PPC efforts with your vendors? When is the last time you had an internal strategy meeting to discuss which models you need to sell more of? 

Working on the dealer level, we know firsthand how difficult it can be as a "customer" to pay our repair order or get our own vehicles' status. Let alone what our customers go through when paying their repair order or inquiring about their status. As a customer, I wanted to pay my service repair order but was stuck on a conference call. Sure, I could call the dealership after the call, but they were on their way with my vehicle. It dawned on me if the dealer can text me to let me know my car is ready - why can't they text me with a link to pay with Apple Pay? (or for those with Google, Google Pay; there are vendors out there!). Instead, the dealer kept calling my phone until I texted my sales guy, and asked if the could tell service that I could not call them back until after my conference call, which left me a little on edge as I was trying to juggle both situations. Not to mention, the "text" notifications regarding my vehicle was "one way," and I could not reply to it. What could have been a simple, easy situation got a little frustrating. I wanted to pay the repair order and take care of it, BUT I couldn't! 

We continue to talk about what "digital retailing" means, but often forget about simple fixes that could create a smooth, painless experience for our customers. Imagine this. The dealer sends you a text that your vehicle is ready, and you can click "pay" within the text message. At which point, you get a confirmation text that your RO is paid! 

Instead, I had to wait until I was off the call, placed on hold for 20 minutes, to then finally pay the RO. And because the total was what was discussed earlier by a significant difference, I had to wait another 18 minutes to speak with the advisor. That's 38 minutes to simply pay an RO. All of this could have been through a text, which would have saved all of us time. I do not mind being on hold, I get that the dealer is just as busy. But imagine if I were able to text the question regarding the new total, get the reply, pay, and be done? 

And look, this pain point certainly does not mean I (or our customers) won't go back to the dealer, I will. But it's these pain points that create a distraction to the customer. Working on the dealer level, you often see the customer calling you before calling them with an update. If you can effectively manage the updates in near real-time, you are proactively communicating with the customer before they contact you. In doing so, the customer might even be more inclined to purchase more since they are not distracted by worrying or thinking about their vehicle's status - or the process of paying for their car. Especially if the customer is picking up their vehicle after service closes. That's another topic for another article. 

So, how do we make this happen? What's holding us dealers back from making a move to offer online or payments via phone? There are vendors out there doing this - and think about it, regardless of the customer paying online or at the dealership, you still pay fees. Sure there is a fee to use the service, but imagine how much time we as dealers could save if we were not tied up on the phones taking payments/explaining charges? This also brings up another concern, which is taking credit card payments over the phone. Taking payments over the phone is not only a security issue, but there are also other security issues to think about. If the customer does not actively insert their "chip" into the card reader, they can easily dispute the charge online. Whereas, if they use the app on their behalf, there is now a paper trail, making it a little harder for the customer to abuse credit disputing. 

Bottom Line: If we can minimize one pain point at a time, imagine how this will impact our customer's experience? Imagine how much easier we are making it for our customers to do business with us? Imagine how much time we would be saving on the dealer level? Not to mention, this goes back to bringing the dealership to the customer. Instead of the dealership interrupting the customer playing phone tag, it could have all been done in a few texts. If this is the one change your dealer makes this year, it is a change well worth the effort! 

For those dealers that have launched a mobile/online payment system, what kind of success have you seen with it? 

There is not a lot of flexibility when it comes to customizing a work-flow in many of today’s CRM’s. Where in many cases the standard work-flow is both a phone call and email, and while both are very important - so is texting. In fact, texting could arguably be more important - in some cases - than the standard dealer email that does not always answer the customer's questions. That said, here are the top things to consider when implementing a work-flow and the shortcomings we face on the dealer level.

If the Customer Does Not Provide a Phone Number the CRM Still Says to Make a Phone Call.

This is one of the most common issues with the CRM’s in today’s market. Wherein, even though the customer does not provide a phone number the work-flow still offers that the BDC Agent or Sales Consultant needs to make a phone call. This also then means that in the CRM’s reporting it will offer that the BDC Agent or Sales Consultant has not completed their workflow tasks. And if your pay plan for the BDC Agent is tied to the completion of their tasks it makes it that much more difficult to manage. As the BDC Manager will have to manually delete the overdue tasks and or change them to another type.

Where is Texting? Many of today's CRM Work-flows do not include texting as a part of the work-flow.

One of the biggest pet peeves with a lot of today’s CRM’s is that they do not include texting as a part of the work-flow. Yet as we know, texting the customer is becoming more and more relevant as it is a very effective means of communicating with our customers. That said it is important for the CRM providers to ensure it becomes apart of the work-flow. Otherwise (as mentioned above) if your BDC Agent’s pay plan is tied to the completion of their tasks their focus will be misplaced. As they are making unnecessary calls and emails.

A Rigid Work-Flow. Two Phone Calls on the First Day. Emails and More!

There is such a thing as over communicating with the customer. This is especially true if you are calling the customer two to three times, emailing and texting them. All without receiving a response, unless that is of course to unsubscribe or they have opted out of texting. And make no mistake, this is not to offer that we should not try to get in touch with the customer a few times on the first day. What it does offer, though is that we need to make sure the content we are offering makes sense. If the customer is not responding to your phone calls and or replying to the emails you sent then it is best to review the content. It could be something as simple as your subject line, or that the email went to their spam folder. Either way, before completing that additional email task is best to look at your overall open and response rate. This will help you get in front of more customers!

Bottom Line: Instead of worrying about the completion of a task for the sake of it make sure the content is relevant. Knowing that not all leads are the same and or require the same level of contact. In fact, in many cases, the customer might add in their initial reply email what times work best for them for you to call. So if you ignore this - to complete a task - then you could potentially run the risk of losing this customer. In doing so, you will see an increase in the overall response rate, which will translate into more sales.

How Do You Handle Your Store’s Work-Flow? Do You Find That it Limits your BDC Agents Productivity? Do You Tie Your BDC Agents Pay Plan to their Work-Flow Task Completion Rate?

It is not uncommon for most dealers to have strict policies against holding a vehicle for a customer. And for good reasons, every day that vehicle sits on the dealer's lot unsold, it takes up floor-plan money costing the dealer money. However, as dealers shift to more digital retailing measures, it poses a good question. Depending on the circumstances, should your dealer offer to hold the vehicle for the customer? In addition to advertising this policy on your dealer's website to provide customers with peace of mind. 

Here are two things to consider with offering a vehicle hold policy. 

Is the customer local? Having the Customer Drive Two Plus Hours to Find Out the Vehicle Has Been Sold is Not A Best Practice. 

Time is money. Not to mention, imagine if you were the customer - driving a long distance - to look at the vehicle they wanted only to find out it has been sold. To make matters worse, the car having been sold is not communicated with your sales team in some cases. So when the customer does come in to work with the sales consultant, they might tell the customer, "oh, this has was sold yesterday." That is not a good look and certainly does not make a good first impression on the customer. 

And sure, they might wind up purchasing another vehicle. Especially if the vehicle is used where the customer might have wanted this vehicle due to their budget. But imagine if your sales consultant or BDC Agent was proactive, and instead of surprising the customer with the car being sold, they were proactive and offered a solution and not a problem. The customer is more likely to purchase the other option and believe that you and your dealership was going the extra mile for them! 3

What Does the Website Branding Look Like? Is this A Good Value Proposition for the Customer? 

Having a clear, defined vehicle hold policy can lend itself to a positive branding opportunity for the dealership. Especially considering that many dealers are trying to offer some sort of digital retailing options for their customers. Think about it, if the customer is searching for a vehicle, but needs/wants to test drive it before purchasing - you are proactively providing the customer a solution. One that could put your dealership ahead of the competition. That and everyone's schedules are different. Maybe Saturday is the only day the customer has to come into the dealership, and they inquired on the vehicle Monday. 

Now, this is not saying "do not sell the vehicle" with the hopes of selling it to the customer on Saturday, either. If the customer wants to hold the vehicle - paying the deposit of $500 (or whatever deposit your dealer chooses - then it should be strongly encouraged that the customer complete an online credit application. This can and will also save the customer a lot of time before visiting the dealership. As for the website's branding, here is a sample ad/banner you can use on your dealership's homepage! 

Bottom Line: Anything your dealership can do to stand out from your competition will only increase the value of your dealership. In this case, you are providing a proactive solution to the customer! It is important to remember that using this process is not intended to "hope" you sell the vehicle. But instead, encouraging the customer to complete a finance application and complete as many of the sales process steps as possible before they come into the dealership. Remembering that if the customer is willing to make a deposit and or complete a credit application before their arrival, they intend to make a purchase. Now it's our job to make that purchase as easy and stress-free as possible! 

Do you offer a vehicle hold policy? If so, has this helped close more deals? For those who offer a hold policy, what are some of the challenges you face, and how have you overcome them?