The word Business Development is ambiguous - what does it even mean, more importantly, what does Business Development mean on the dealer level? The idea that your role is on many levels apart of the dealer's infrastructure. In that, you or your team make and enact on decisions that influence the way business is done, which can have a profound impact on the dealer's bottom line. But let's back up for a moment. Not all dealers - while they use the term business development - actually have their employees or their respective teams develop business. Rather, they are a part of a department that assists the GM, and sales managers in their roles. And in a way acts as a band-aid rather than creating and executing meaningful change. 

It is no secret, really, that BDC Centers were first created to perform tasks that management could not get their teams to perform. The very idea that the foundation for many departments was derived from that is unnerving. Where, instead of shifting the way we approach business as sales consultants and managers, we created new, costly, roles to 'fix' or 'band-aid' the ongoing issues. And in many instances - as profit margins have been thinning; fixed-ops can only absorb so much of the cost as expenses loom - dealers had to cut the BDC departments. This is a multi-faceted conversation, too. The very idea that your BDC team costs you money is everything wrong with how this word has and is used on the dealer level. But for a business development team to be successful, and most importantly, profitable, there has to be a purpose. A purpose that enacts on successfully creating change. Change that builds a solid team in everything from process management, marketing, business development, vendor relationships, budget analysis, and departmental alignment and changes. 

Having been in this role for nearly eight years, there are a few things I have learned that helped push me in the right direction. One that has afforded a solid foundation and growth. 

A Job Is Nothing Without the Right Boss. A Leader is Not Just A Boss, However, and Should Be An Invaluable Mentor. 

One word that comes to mind about a boss versus a leader is micro-managing. In that, if your boss is not decisive or otherwise able to allow their teams to make decisions on the dealer level with regards to everything from marketing campaigns, vendors, business strategies, or team development then it can have a grave impact on your growth and development. Make no mistake, either, in that it is just as much your responsibility to be decisive and clear with both your thoughts and intentions as it is your leaders. 

An example that I will never forget, and has changed the way I look at marketing campaigns today, is how I instructed to execute them. That is sending an email campaign - regardless of the content - to the entire database. The idea was that the more emails we send, the better chance we had in getting a response. And while that is true - in that, you will get multiple people to respond saying "unsubscribe me" - that is clearly not the response you want to receive. Not to mention, as we know - sending campaigns to a targeted list is a much better practice and will help with both response and engagement. Namely, because of being micro-managed and unable to execute a relevant campaign, it got to the point where it made creating new ideas illogical, and unexciting. You cannot learn and grow if your every move - down to the audience the campaign should be sent to  - is micro-managed. Albeit, making mistakes can be costly, but it is more important at the end of the day to focus on the bigger picture, and not simply sending an email to every single email.  

There Is A Stark Difference With Disagreeing With Someone And Having A Chip On Your Shoulder. You Can Own It Without Being Disrespectful. 

If a Vendor offered a fix - much like the cheesy infomercials - it must be right! Anything that could magically fix a problem without us having to execute and or make a change. This is by no means an effective way to lead or manage a team. More so, if you do disagree with a fix have both Merrit and a well thought out purpose in what you have to offer. I once encountered a trainer who had created unresponsive email templates - on PDF's no less - and they deleted all of the templates in the CRM because they wanted to increase in open rate, which has nothing to do with the content, but rather the subject line, audience, and timing of the campaign. BUT, that obviously was not the answer, and I disagreed, which was not taken well. 

Look, this isn't about the frustration of hours and hours of work being deleted as a result of one opinion. Instead, it is about having those conversations without including your team, without knowing the full picture, and taking the word of someone that does not know your dealership. As I have mentioned before, however, make no mistake - own your thoughts, and do not apologize. Even if that means that it puts you at a distance between your boss. As backtracking your perspective and ideas is equally as distracting and unattractive. Understanding that these decisive business decisions might put you on the outs. 

We Fix Problems Before They Become Problems. We Create and Execute Business Strategies that Impact the Bottom Line. 

Developing business - or a pipeline - is not easy. Especially when you are trying to develop business in the confines of what we know. Namely, in the last eight years, I have learned that it is essential to think outside of the box. And while that can and is in most cases an overused cliche phrase, it is a phrase that has both meaning and merit. Wherein, if we are continuing to only do what we know vs. taking a chance and being 'different' then how can we not just develop ourselves, but more importantly build business? One of the best ways to approach a new idea or thought is to understand the purpose. And sure, we get it. The goal of an Ad Campaign is to what? Increase sales. But when you look at a 'campaign' simply as a 'campaign,' we limit our ability to think of ways to change the structure of the campaign. In that, if we have done the same campaign types over, and over again, we cannot expect to get better results. To combat this mode of thought, I would spend time using the Google Ad's Experiments, and while I did not always add a lot of money to those campaigns until I knew it was going to be a success, most of them worked. 

Bottom Line: you cannot think of your role as a limited, one-dimensional role - you have to not just create and execute campaigns, you have to ensure that everyone involved in the campaigns and the 'conversions' that derive from them is executed on. In that, once you have made a decision or executed a campaign, your work is not done. Your team - including sales managers - cannot do their part if you do not give them the information they need. And it does no good to increase your leads if your dealer cannot manage them. And simply cutting the budget due to their underperformance is not the answer, either. Instead, there are times where you have to have frank conversations with your GM or Sales Managers to ensure they, too, understand the campaigns and the purpose of them. In doing so, it can and will help your dealership execute on those opportunities. 

It is one thing to have a clearly defined job description, and another to actually execute that role. Namely, what is that role, and how does it work within your dealership? How does it work with the roles that are already part of your dealer's infrastructure? Namely, before you hire someone there has to be a clear purpose to what the role is - rather than it having been created as a band-aid to ineffectively fix an ongoing issue that no position or person can necessarily fix. That said, here are two things to consider when hiring someone for a BDC Position for your dealership. 

Avoid Fixating On Only Interviewing People With Dealer Experience. Working With Someone Who Wants To Learn Can Be Far More Valuable. 

It can be easy to gravitate towards a candidate who has had dealer experience forgoing candidates who do not. However, before you move them to the side, be sure to give them a chance. A chance that could lead to their joining your team. Experience is valuable, sure - but only if that experience can effectively translate to your current setting. In that, each dealership is unique to its own. So just because they have experience having had that ‘title,’ it does not mean that it will work for your dealership. More so, going back to the notion that each dealer is unique to its own, the title might be the same, but I can assure you that the positions are not. Better yet, did you take the time to ask the candidates why they left the other dealership? Do they like the job and what it entails? Or have they closed themselves into a ‘box’ only doing what they know, and not what they can learn? 

On the surface, sure, it might seem both senseless and superficial to entertain the above thoughts. However, its thoughts along those lines that can help you hire the right person not just for the job, but for the dealership. In my experience, I have found that it is best to hire a team of talent that is unique, a team who has skills you do not have. Skills that might seem contrary to the dealership's vision, but that can translate into executing new and evolved concepts on how to approach the ever-evolving world of ‘business development.’ That is certainly easier said than done as it might just be easier to hire the candidate who worked at a dealership. Instead of having this frame of mind, take a risk, take a chance, and do not limit your parameters of what makes a good candidate based on their previous experiences. 

Just Because They Have Dealer Experience Does Not By Any Means Offer That They Are A Good Fit For Your Dealership. 

There were many times that I was told to hire someone - against my better judgment - simply because they had worked for a dealer. The idea that because of their dealer experience that they would be a perfect fit. But that just isn’t the case. Not to mention, even if the potential candidate does have a lot of experience - relevant to the position or not - if they do not fit into the dealer's culture, and or share the same vision or goals as the team it can and will cause unnecessary chaos. 

This is not to offer that you ought not to hire a disrupter. What this is offering, though, is that when you do they still have to collectively fit into the bigger picture. One of the best examples of this was an employee I was forced to hire because the GM liked that they had phone experience, which sounded great. However, during the interview process, it was unnerving that the candidate interrupted questions, didn’t answer them, wasn’t professional, and was self-interested. And given that this role - especially in BDC - is about offering an experience that is in alignment with the potential buyers' demands it is imperative that you can adapt your skills in the moment. Ensuring that you capture not just the customer's interest, but that you engage with them in a relevant, meaningful way. 

Beyond being able to offer the potential customer a positive experience, the employee has to get along with the team in place. If you hire someone who's good, but cannot get along with a team - as they do not have the ability to listen - you are in so many ways knowingly and willingly creating a negative environment. Or in a better sense, an ‘eggshell’ effect where it hinders productivity and momentum that was once in place. I could go on about the tell tales of the actions on behalf of this employee, but the main point and purpose of this anecdote are that the employee went on to dismantle the already, delicate, morale to the point where more than fifty percent of the team quit. If you are otherwise unable to remove this breakpoint, which creates the tension and chaos, this disillusioned employee can wind up costing your dealer thousands of dollars. 

Bottom Line: Hiring a candidate let alone building the right team is not easy. There is much more than what meets the eye when executing your plan. But if there is one thing to take away from this is, it would be to rid yourself of the preconceived notions that dealership experience is the end all be all. Where it might be of value to take a risk and hire the candidate that does not have the dealership experience, but is interested in learning and developing into a fluctuating role. Lastly, be decisive - if you have an employee who is disengaged, causes chaos, or is otherwise unable to fit within the team for reasons that cannot be changed, be direct and remove the chaos. In doing so, you can more effectively manage the team in place. 

How do you approach the hiring process? What is one thing you have learned from hiring and building a team? 

The role of the BDC has evolved considerably over the last five to six years. Where dealers built BDC teams only to dismantle them to then going back and reinstating them. Through the evolution of "the BDC," however, it has been quite common to add on additional tasks to the department. Whether that is managing the website, marketing, vendor management, and training, to name a few. So before you add additional responsibilities to their plate, make sure it will not impact their appointments, which is arguably their primary focus, no? Not to mention if their pay plan is solely focused on shown and sold appointments it can not only cause turn-over but places more emphasis on working a pay plan than working with the customer and offering them the experience they expect. All while they are juggling the many other additional tasks. 

Do the Responsibilities Match the Pay Plan? If Not, This Could Spell Trouble for Your Dealership. 

If your BDC Agent is expected to make one hundred phone calls, answer chats, in-bound calls, manage the sales consultants long-term follow-up, manage the CRM, marketing, and anything else that comes their way, it is challenging to sustain the results. And while there are arguments of "it's their job" -- less is more, no? That said, the pay plan has to reflect their actual responsibilities. If their pay plans are solely based on set, shown, and sold appointments, then we cannot get frustrated if their focus becomes singular, and the other various tasks go by the wayside - all of which affects incoming calls and leads. And sure, we could say that well in order for them to get more appointments the website has to be correct, chats have to be answered, marketing has to be done, the training has to be done - that is all very true. But that does not mean that it should - by any means - all fall under their roles and responsibilities if that is not what they are getting paid on. This is not an easy conversation, either. However, the fact of the matter is that the role has evolved, yet the pay plan seems to be relatively similar. In that, it remains focused on set, shown & sold appointments. 

For those with a BDC Manager, in most cases, the roles mentioned above are on their plate. But make no mistake, they often have to delegate tasks and responsibilities to their staff as it is often not possible to keep up with everything. All that to say, the importance of reviewing their responsibilities is not to make excuses, but rather to ensure that their pay plans are reflective of what they are doing. Otherwise, it can not just lead to their burning out, but worse - they wind up leaving, which means you have to either dismantle the BDC or hire another manager. I have seen first hand what happens when a BDC Manager quits. Yes, the dealer moves on, but it can and will cause chaos. On the flip side, if a BDC Agent quits, their responsibilities are then placed onto the BDC Manager. So not only do they have to do everything else - as mentioned above - now they have to make one hundred plus phone calls a day, too. It just doesn't make sense. 

What Does the Pay Plan of A BDC Manager Look Like? 

If your BDC Manager manages more than appointments, then their pay plan needs to reflect that. While salaries are often a taboo word in the auto industry, it can help keep their focus on all facets of the business not just on an end result, which is affected by all the above. If you do choose to pay them solely on set, show, or sold appointments than you should delegate their tasks or make sure you have the staff to take care of the other responsibilities. As I can assure you, if their pay plan is solely on set, show, and sold vehicles, that is what their focus is on. And while the efforts above impact that - I get that - it is exceedingly difficult to manage everything at once. 

On a less favorable note, too - a pay plan that offers you 'x' amount of dollars per shown or sold appointment based on volume sounds great. But given that - in most cases - that the BDC Manager has no say in the budget, itself and if you cut the budget it makes it that much more difficult to chase the pay plan. And no, this is not to say that instead, you pay them solely a salary, but the bottom line is that the pay plan has to make sense. Here is an example of a BDC Manager pay plan. 

This is based on an OEM Franchise that sells at least 45-50 new units, and 60-70 used vehicles per month. If you sell more/less, you can adjust the below rates. 

Weekly Salary: $1,000 / Monthly Salary $4,000

Bonus Plan: 

35 sold units / $750 

50 sold units / $1,250 

75 sold units / 1,750 

Annual Bonus $5 per sold unit (in this example, let's say it was 75 per month for a total of 900 units at $5 per unit): $4,500

Total Annual Pay Based on 75 units sold per month: $73,500 

At first glance, sure - you might be laughing, but the fact of the matter is that if your BDC Manager is managing the website, CRM, Marketing, Vendors Relationships, Vendor Integrations, Training, and a BDC Team to name a few even $73,500 is on the lighter side of the pay scale. By having a stronger salaried rate, too, it keeps their focus on what is most important - that is increasing leads that turn into shown and sold appointments through the efforts of their BDC Agents, and teams respectively. 

Another aspect of the pay plan is to remove the "bonus" for a shown appointment as a shown appointment is only deemed great if it sells, which is largely out of the BDC Managers hands. In that, while there are many arguments about 'fake appointments,' which is a topic/discussion for another article - this pay plan is designed to keep your BDC Manager focused on what's most important. In doing so, not only can it lead to retaining them, but it also enables them to implement new initiatives all while they are building their teams. 

Bottom Line: there is no one perfect pay plan. Each dealership has its own bottom line and market to work after. That said, the pay plan cannot be a canned plan from one of the "major trainer" players whose plan does not by any means take into account what the BDC Manager is and or does on the dealer level. Where in most cases, their pay plans are used as a means of offering a "band-aid" solution in that - "hey look, if you get 'x' leads, they get paid 'x' amount," which again, sounds great. But is only 'great' if a) the lead volume is consistent, and b) if their roles and responsibilities are solely limited to managing the BDC and not other facets of the business. Lastly, look - this is not a tell-all drama about underpaid BDC Managers, either. It's a conversation to be had. One that can and will impact your dealer's bottom line as your Business Development Manager and exec team are strategizing what is best for your dealership with regards to everything from digital marketing, CRM Management, Vendor Manager, and training to name a few. 

How do you pay your BDC Managers? Have you found an alternative pay plan that works for you? 

We have a knack for creating new words - words that evolve into bonafide buzz-words,  positions, or conversations that often remain on autoloop. One buzz-word that has seemingly disappeared, though, is still a widely known position on the dealer level is an "Internet Manager." 

So What Is An Internet Manager Exactly? 

One might imagine that back when the digital sector took off that anything that had to do with the "Internet" morphed into this position called the "Internet Manager." A position that - to this day - does not quite make much sense. In that, what does "managing the internet" even mean? Really? When in conversation, the "Internet Manager" might refer to the person(s) who manage the Internet Leads. At which point, s/he might simply answer the lead and hand it off to a sales consultant. Or in some instances, s/he might complete the sale from start to finish. 

How Does That Even Work When More Than Ninety Percent Of Today's Customers Shop Online Before Going Into A Dealership? 

This is a great question given that we know more than ninety percent of today's buyers shop online before going into the dealership, how exactly do we differentiate these customers? And more importantly, is it even necessary or beneficial to separate the customers? Whereby doing the above, can in many ways create unnecessary breakpoints in your dealer's omnichannel plan of action. Think about it, if the customer shops online without inquiring to then come into the dealership and is forced down a rabbit hole, it can and will create massive "breakpoints." Breakpoints that could have otherwise been avoided. 

The breakpoints - while on the surface might not be noticeable - occur daily. One of the most significant examples of this is when it comes to pricing. For instance, if your "Internet Manager" is not working with the customer as they did not inquire online, and they wind up working  with a "sales consultant" who believes that they have not been online and tries to sell it at sticker vs. the Internet price it can and will most certainly cause a breakpoint, which can leave the customer frustrated. 

So while we might believe that it is harmless to not disclose "Internet Pricing" to a customer who we do not know if they have been online - we unknowingly caused a breakpoint in our omnichannel experience. Where the customer does not think that they have to blatantly let the sales consultant know they had already seen the vehicle online for a lower price. It is assumed in many instances that the price offered online is the price of the vehicle. For example, imagine if you were shopping online for an item, but did not call the store. As you did not feel that it was necessary to call the store to confirm pricing because it was, well, online! Now imagine you get to the store only to find out that the price of the item you searched was now $1,200 more than what you expected! Wouldn't that be frustrating? Sure it would. Well, it is just as frustrating for your customer whose experience has now gone off the tracks. 

So Why Do We Even Use the Name "Internet Manager"? 

That, too, is a great question. When you think about it, what does managing the "Internet" even mean? If anything, it is a customer service position whose goal should be to answer the customer's questions and get them to come into the store. Knowing that getting the customer to show up to the dealership is half the battle! Albeit, there are sales managers - to this day - that think the job is "easy" with the mindset that all they have to do is sit behind a desk and get people to come into the dealership. Where the "hard part" is for the sales consultants as they actually have to do the job and close the customer. Sure, it is no easy task to close the customer. But that is another topic for another article. Yet time and time again, the sales managers (and sales consultants) will simply blame the "quality" of the lead as the reason they did not close the deal. 

The real crux of the conversation is that no, there is no such thing as an "Internet Manager." There are sales managers, sales consultants, and BDC centers for those that have them. The dealers who have "Internet Departments" with sales consultants who only handle Internet Leads are missing the point, and in turn, losing sales as they are unknowingly creating breakpoints in their customer's omnichannel experience. As multiple customers shop online - without inquiring online who "show-up" at the dealership. This can and will cause numerous issues on the dealer level. More importantly, with this model - it creates unnecessary tension - i.e., if only specific people can work with "Internet" customers, but are otherwise assisting a customer at the time they show up (and are the only ones allowed to assist them) they are willingly allowing the customer to become disenchanted as they wait to purchase a vehicle potentially. 

If your dealership is caught up with having to have an "Internet Department" then it is highly recommended that they pass the appointment off to their sales managers. At which point, the sales manager can assign the customer to an available sales consultant. In doing so, you ensure that the customer is taken care of! Not to mention, if the "Internet Manager" is caught up with customers for three to four hours at a time with customers they are not making near enough customer contacts to bring in new business! This just gives them yet another reason to not make customer contacts. I mean, it can be a struggle to get them to call just twenty people a day! 

Do you have an Internet Manager/Department? If so, what challenges do you face trying to make this work? 

While it is expected that the vendor will maximize the results on the dealer level month after month - at the end of the day, your account manager is a human too. Having a solid relationship with the vendor and more importantly, your account manager is beneficial for many reasons. However, if we look at the account manager as simply an "account manager," it can have a negative impact for many reasons. Here are the top things to consider when managing your relationship with a vendor! 

Random Calls With No Agenda. They Are Good. But They Are Not Psychics. Have A Purpose for the Call.  

More often than not, the vendor wants nothing more than for your dealership to be successful. So while their product can, in many cases speak for itself when it comes to the results, they also need your input and feedback. The worst thing you can ask is "what are other (OEM) 's doing?" Sure, they can tell you what a dealership six hundred miles away did for one campaign, but that does not mean that it will do well in your local market. Instead of approaching the call from that perspective, offer "we need to move the [model], and our days to market supply is too high. How can we move these units?" Now that they have a clear objective, it not only makes the conversation more relevant, but it also enables them to devise a plan that is meaningful and relevant to your dealership. And this is by no means offering that this will work in every instance, or that the campaign will be a success. What this does do, however, is offers them the ability to create a plan of action! That is the purpose of having the call at the end of the day, no? 

Monthly Reports Call. Do Not Blow It Off. Pay Attention. Be Prepared. 

I am not a vendor, I still work on the dealer level. However, one thing I know is that their time is just as valuable as ours is on the dealer level. So not coming prepared for the monthly results call and or not having questions to ask not only wastes their time, it wastes your time, which can lead to frustration on both ends. Whereas, if you take the time to review the results, and look at the reporting, and prepare questions that are both meaningful and relevant, the meeting will be time well spent. Instead of repeating the same items, and or going through the motions, you are having a plan of action/strategy meeting! One that can lead to results! 

Do Not Interrupt the Account Manager. Have Respect. If You Are Distracted And Not Able to Pay Attention, Make Sure You Do Your Best to Avoid The Distractions. Bottom Line - Make Time for the Meeting. 

I get it. We are all busy. And while some of us will proudly state that we can multitask like a pro, the fact is that it is tough to multitask. The quality of our work is not at its best. So when it comes to a vendor meeting, make sure you have set aside time for the meeting and that you can pay attention. The other thing to consider and be mindful of is continuously interrupting them. That does not help anyone out. If you have questions, which you should, be sure to send them ahead of time. This way, they can address your questions/thoughts during the monthly call.

The other thing to avoid is randomly paging in a sales manager or any manager for that matter - who is not prepared - to the meeting putting them on the spot to answer questions they are unaware of. More often than not, if you put an employee on the spot, they will not always be able to answer the question effectively. All of which can lead to an indecisive conversation only leading to more confusion and frustration on your end. And before you get mad or frustrated with your managers - ask yourself, have they even seen this report? Did they know you had the call? Chances are they did not. 

Lastly, have respect. It works both ways. At the end of the day, whether good bad or indifferent they are doing their job. If you disagree or have a difference of opinion, that's perfectly fine! You should question what they are doing and how they are approaching your business plans. However, treating them with disrespect by not paying attention, not offering any insight or not being prepared only makes their jobs that much harder. Not to mention, it can put a strain on your relationship with not just the account manager, but also the vendor! Think about it, would you go out of your way for a customer if they do not respect your time or were disrespectful? Probably not.   

Bottom Line: simply turning a vendor on auto-pilot is not effective or conducive for anyone. As a dealership, it is just as much your responsibility to make sure you are getting the most out of the vendor relationship as its the vendor's responsibility to make sure you know what resources you have available. And to get the most out of the vendor's product starts by having a great relationship with your account manager and vendor. It also means that you take the time to be prepared for the meetings, asking questions, and most importantly, it is having a translatable goal or vision to discuss with the vendor. Lastly, if you have planned to have the account manager visit the dealership, it never hurts to take them to lunch or dinner. In doing so, it can give you the chance to discuss your goals, challenges, and concerns in a relevant way. Something as simple as a lunch or dinner to thank them for their efforts can go a long way! 

How do you manage the relationships with your vendors? What's one thing you have done to increase the engagement with your account manager? 
 

There is nothing worse than having aged inventory at your dealership. It is no secret that the longer the unit sits unsold, the more expensive it becomes. At which point, you could wind up losing money selling the unit. One simple but effective way to combat aging inventory is to take advantage of your inventory tool for online merchandising! Below are a few simple fixes that can make a big difference! 

Image Overlays On All Inventory 

Many of today's inventory tools enable you to create an image overlay that has your dealers logo and a phone number. This is then displayed on the first photo of every unit. One of the benefits of this is that it separates you from the other dealerships when it comes to third party listings. Not to mention, you can often easily add a tracking line to the overlay. By adding a tracking line, it not only makes your unit stand out, but it also provides a way of measuring how many calls you are getting from your VDP's. If you are not sure whether or not your vendor is capable of doing this, give them a call letting them know you want to add an image overlay. The tool usually can create different overlays for both new and pre-owned. 

Banners! Make Your Unit Stand-Out

Just because the unit is on a specials page does not mean that it will stick out. Think about what makes your unit stand out from the rest, which could be anything from one owner, low mileage, special trim level, or a great deal! By adding a simple banner to the left-hand corner (remember, we read left to right), your customer will see a visual stand-out as to why the vehicle is a great deal. In doing so, not only does this make your vehicle stand out from the rest, but it increases your chances of getting a phone call or lead! 

Photos! Make Sure The Vehicle Looks Showroom Ready 

It might sound silly, but the fact of the matter is that the photos of the vehicle matter. If the pictures do not show off the features or are otherwise blurry, or even dirty, it can detract the customer from wanting to make a phone call or submit an inquiry. The best way to ensure that all of your vehicle photos are showroom ready is to ensure the following: 

Consistency: make sure all of the vehicles are pointed in the right direction; usually, the first photo is of the front of the car pointing to the left. Another thing to consider is the background making sure there are no other vehicles in the background. You also want to consider having the front of the dealership in the background, which can help with branding. 

Features: If the vehicle has extra options on the trim level, then be sure to get photos of those features. For example, if the car has a dual panoramic moonroof than be sure to take a picture so the customer can confirm that it has that option available. Another photo to take is of the 'control panel,' i.e., if it has CarPlay or Navigation - take a quick picture of it in action! 

Outdated Photos: If the last photo of the vehicle - and this pertains to old aged inventory - has snow on the ground in the background, then take the extra minute or two and retake the photos. This is not to say that it will help increase the price, either. What this does offer, however, are new updated photos of the vehicle, which can have a positive impact! 

Bottom Line: even if you tackle one of the three things above, this can have a positive impact on your aging inventory. The fast you sell the aging inventory, the better off your dealership will be in the long run. 

Do you use image overlays? If so, did you see an increase in calls after implementing them with phone numbers? What is one way you keep aging inventory in check? 
 

The CRM is arguably one of the most essential tools for the dealership other than the DMS. However, one thing to note and consider are all of the hidden fees associated with the CRM; everything from integration fees (from the DMS) and third-party vendors. More importantly, too, is how the third party tools are integrated into the CRM. Such as but not limited to phone call tracking, trade-in tools, texting, and email marketing, to name a few. That said, here are two things to consider when it comes to the vendor integration fees. 

The Cost to Connect the DMS. 

The CRM is often connected to the DMS, and the purpose of the DMS being connected is so that the sales and fixed-ops transactions can be sent to the CRM. Having that data in the CRM is valuable for many reasons. One of the top reasons to have the DMS connected is so that you are easily able to pull reporting on your customers total spend. In addition to being able to effectively market to those customers. In order to do all of this, however, you generally have to pay a fee to so that the systems communicate. And depending on both the CRM or DMS system you use, the fees can quickly add up. This is also a fee you pay monthly, which can be as much as $600 a month! Take a minute to see what you are spending and make sure that all of the data is coming over correctly. The one data point that is imperative to have sent over to the CRM is the DMS ID of the sales consultant or service advisor that completed the transaction. As a result of doing that, you can easily see what they contributed to individually. More often than not, you will see "house deal" in the CRM regarding a sold deal or service RO. The main reason this occurs is due to the DMS ID not being setup in the CRM. Or if the sales consultant has not yet obtained their sales license. And in many cases, if you try and 'add' or 'change' the DMS ID in the CRM, by the next morning it reverts back to the 'house deal' DMS ID. This is because  the DMS imports data nightly, which is another reason why your reports might not be accurate and or showing multiple 'split deals' as it is splitting a deal with both ID's. 

Are Third-Party Integrations Always Necessary? 

This is a hard question to ask. I offer that because even if the vendor is connected to the CRM - having paid the monthly fee - does not mean that you will be able to use the tool in the way you thought. Namely, a lot of the vendor integrations are not always able to function as they would if you were using the tool separately. For example, two of the biggest third-party integrations used today on the dealer level are inbound call tracking and trade evaluations. When it comes to integrating inbound phone calls, it is essential as most vendors are able to ensure that the inbound call is linked to the customer's profile. However, when it comes to managing both the call and reporting, it is often easier to accomplish directly in their platform.  Where some of the call tracking vendors do not relay any information added and or changed into their system from the CRM. For example, it is much easier in many cases to listen to the sales calls in the CRM, no? But if your GM were to review the "calls reviewed" report from the platform - not taking into consideration that you listened to them in the CRM - then it can cause for frustration on both ends. That said, while it might cost you money to integrate the vendor, it is worth it as it is essential to have the calls linked to the customer. Making it much easier for your BDC Agents, Sales Consultants, and Sales Managers to manage the customer correspondence. 

With regards to the trade-evaluations, in many cases, the sales consultant still has to use the third party-app to in-put the trade information, which is then sent over to the CRM. That still causes there to be double data entry.  As a result, most sales consultants are required to enter the trade-in information manually into the CRM tool at which point the sales manager can use that data - in the CRM - to run the trade evaluation. That said, it comes down to a personal choice, and it is still a good idea to have it integrated into the CRM as you will then have accurate data regarding the trade. Not to mention, as you know - especially for those who print deal packets from the CRM - it is imperative that the trade-in information is correct. Anything to make this easier and more accurate is the way to go. 

Bottom Line: While we cannot get out of the fees we pay to have a vendor integrated, we do need to make sure that all of the data we need to be pushed over is pushed correctly. In addition to making sure that for those with third-party integrations are not just setup correctly, but that you are able to easily manage the integration. Being able to access the elements of the platform without having to use both the CRM and the vendor platform. 

What Are Some of the Tools That You Use But Are Not Integrated Into the CRM? What is holding you back from having the tool integrated? 

No matter the business model, your dealership has evolved several of your roles over the years everything from dealers adding business development centers, exchange managers in service, product consultants, and marketing managers to name a few. However, the one position that has not often been discussed or evolved is the GM position -  a position that manages all departments on the dealer level;  a position that can enact on making changes happen. 

So we have to ask ourselves, how as the GM position evolved? Has the position evolved enough? Can a GM effectively manage the entire operation as each departments goals and tasks have increased to sustain your dealer's profitability? 

So What Exactly is the Role of the GM on the Dealer Level? 

According to autojobcareers.com, The automotive dealership General Manager ensures the profitability of the dealership by overseeing the various departments which include variable operations (sales & financing), fixed operations (service & parts), and the business office (accounting & administration).  Duties of the general manager include, but certainly not limited to, planning, motivating, and coordinating the dealership's management through leadership and solid business practices. 

That Said Can A GM Effectively Manage the Various Departments On A Dealer Level With the Challenges A Dealer Faces in Today's Market? 

This is not an easy question to approach nor is the purpose of this question - by any means - to denounce the efforts of a traditional GM role. Instead, the purpose of asking this bold question is to understand better how a GM can approach the various departments — ensuring that each department is successful and generating the revenue needed to sustain the bottom line. 

One of the concerns with having one role overseeing all of your dealers departments is their inability to manage the day-to-day operations effectively. In which case, their managers while able to make many of the decisions are unable to execute on many without the GM's approval. So as a result, that can in many cases, slow down their operations. For example, if the service manager wanted to execute a marketing plan spending $1,500 - in many instances, s/he would have to seek the approval of the GM. If the GM were otherwise unavailable and unable to make the final decision - or worse, it took two to three days to make a decision - the delay could have an impact on the success of the campaign. And while this is certainly one example, there are many other examples. 

Another key issue is the new car and used car sales. Each department has its own business model; a model that is managed by your sales managers. However, it is no secret that many of the decisions made by the sales managers have to be approved exclusively by the dealers GM. As a result, this can hinder productivity and performance. Namely, given that many of the sales managers - or GSM's - are otherwise unable to make final decisions when it comes to purchasing inventory or managing the dealer's department they are unable to perform at the level they need too necessarily. 

Imagine empowering your sales managers, GSM's, and fixed-ops managers by allowing them to make the necessary decisions on the dealer level. The idea that you are allowing them to run their respective departments effectively. Taking out a potential roadblock; one that can wind up costing the dealer thousands of dollars in lost revenue. 

So Without A GM, What Does Your Dealer Look Like? How Does this Even Work? 

Several dealers have executive vice presidents who are to oversee all of the GM's. All of which sounds great, no? The idea that the EVP can assist the GM's in making the decisions necessary to carry out the business plans. The problem, however, with this model is that the GM's are not involved in the day-to-day operations. In which case, when having meetings to discuss processes, procedures, and or the changing of a department, it is done without the managers in fixed-ops,  sales or with your controller (COO; the one who handles your dealerships finances).  This can have a negative impact on how they approach the decisions, as many decisions are often in alignment with the bottom line in mind. Moreover, while the bottom line is of the most importance; the way you approach the bottom line has to be in alignment with the way your managers approach their departments, respectively. It is challenging to do so without the managers being involved as they are the ones managing the day-to-day operations, which as a direct impact on the success of said proposed changes. 

One of the ways to approach this is by having directors. Each dealership would have a director for both sales, fixed-ops, and the Controler (a new title would be COO). The purpose of this position is to manage the sustainability and profitability of each of your dealer's departments. The directors also work closely with each of the sales and service managers. At which point, the directors report to the EVP. In which case, instead of one person,  the GM reporting to the EVP, multiple people are reporting to that role. People who can effectively enact changes on the dealer level. For those who do not have EVP's, you can have the directors report directly to the CEO. What this does is bridge the communication gaps between the CEO and the employes (your managers) who are directly responsible and accountable for maintaining the dealer's bottom line. 

The Dealer Can Effectively Save Money By Restructuring With Directors and Removing the GM Position. In-turn, Increasing Your Revenue Adding to the Bottom Line. 

The average GM salary (which of course depends on the market) makes roughly $217,000 a year between their salary and bonuses. If you were to restructure and pay a director position for fixed-ops, sales, and your controller (or better yet, a COO), with both the sales and fixed-ops' managers in the six-figure bracket (which they are already most likely making) - you now have three positions that can make executive decisions reporting to either the EVP or CEO. Directors who are then involved in not just a day to day operations, but are also able to make decisions empowering their departments to increase revenue for the dealerships bottom line. 

Namely, instead of paying one position a high six-figure salary, you now have three positions making six-figures — two of which who are already most likely in the six-figure bracket. As a result, this not only can save your dealership a six-figure salary, it can increase your dealer's performance, collectively. All of which adds to the already thinning bottom line. 

The Bottom Line: the purpose and intentions of this article are by no means to denounce the efforts of the GM's. However, we have to ask ourselves how the GM position has evolved and whether or not one person can effectively manage all of the departments collectively. Knowing that the profit margins are continuing to thin, and every decision made on the dealer level has a direct impact on your profitability. The idea that if you were to have three key directors on the dealer level who are closely involved in the day-to-day operations manage their departments exclusively - it would not just empower them, but it would have a positive impact on the bottom line. 

Has Your Executive Team Restructured the GM Position to Increase Profitability? Have You Considered A Director Role On the Dealer Level? 
 

Anything to make the process easier for the sales consultant is a win-win, and there is a lot of conversation surrounding the usage of tablets versus desktops. In many cases, too, the OEM’s have apps and resources for the dealerships - using a tablet - when it comes to delivering new vehicles and service walk-around, to name a few. That said, the sales consultant is using both their computer and tablet, which has posed the question: can the sales consultants just use a tablet during the entire process? 

Here are the top things to consider when discussing making the switch! 

Why Are You Making the Switch? How Does this Impact the Sales Team Much Less the Sales Process? 

One of the biggest buzz words in the industry in the last few years has been “transparency.” The idea that we need to ensure that the customer has a clear understanding of what we do; namely, how the sales process is approached on the dealer level. All of which sounds great, but more importantly, how do we execute that on the dealer level. 

So you have to ask yourself “why are we making the switch,” as simply switching to a tablet does not by any means make it easier to complete the sales process. Much less offer the customer the experience we are aiming for! 

One of the ideas behind the usage of a tablet was the idea that the customer is not sitting at a desk with the sales consultant plugging away at their computer. Instead, the sales consultant is more engaged with the customer as they are going through the process: everything from selecting the vehicle to test drive, to reviewing extended warranties, and service contracts. 

The problems that can arise with this approach, however, is the usability of the tablet which is outlined below. 

Not All CRM’s Function Well On Mobile. 

There is nothing worse than trying to pinch and zoom on the tablet to use the CRM when entering a customer in and or working the sales process. And while many CRM’s have a mobile app as a part of their platform, it does not mean that it functions well. In fact, you will find that a lot of the CRM apps lack features that are otherwise available on the desktop (web) version. The core functions that your team needs to be able to access on the mobile app are quoting, emails, customer profiles, and work-flow management. Otherwise, as mentioned above, it becomes quite cumbersome to try and manage the sales process solely using the tablet. 

One thing that dealers are doing to convey the concept of being ‘mobile’ is by giving their sales teams laptops instead of desktops. In which case, while they are not using the tablet for the entire sale process, they are at least able to use the laptop, enabling them to work with the customer from wherever in the dealership. 

You Have to Have Wi-Fi that Works. There is Nothing Worse than Not Having Reliable Service. 

With so many aspects of the sales process being digital, using everything from your phone to a tablet, it is essential to have good, quality internet service. I cannot tell you how many times I have encountered dealerships who do not have good Wi-Fi much less the ability to use the Wi-Fi outside of the dealership. All of which impedes the usage of the tablet/phone. For example, many CRM’s today offer the ability for the sales consultant to scan the customers VIN on their trade using their phones/tablets. But if they are otherwise unable to connect and/or do not have service, it makes a simple, quick, process a daunting one. 

The Bottom Line: there are pros and cons to both perspectives. The most critical element to consider when approaching this conversation, however, is the purpose of moving towards tablets and phones. Ensuring that if you do make the switch that you not only have a solid infrastructure but more importantly that your sales managers buy into the process. As while the sales consultants might be in alignment with the changes, if the management is not on board it makes it that much harder to offer the customer the experience you are trying to offer. Lastly, for those who do embrace and offer the sales process via a tablet or mobile phone, it is still essential to have dedicated spaces where your sales consultants can work with the customer. As there is nothing worse than trying to work a deal in a space the customer does not find comfortable. 

Do You Use Tablets for the Sales Process? If So, What Are Some of the Challenges You Face? For Those Who Do Not Use Tablets Other than What the OEM Mandates, What is Holding You Back?
 

No one ever said it was easy to manage your dealership's inventory - everything from the floorplan, selection, cost, recon for pre-owned, to managing your days to market supply. All of those facets of managing your dealership's inventory are critical components. However, this all starts with the inventory being entered into the DMS. With the notion that the DMS is the heartbeat of the dealership; having the correct information regarding the vehicle is essential, not to mention ensuring that it is marked correctly to be listed on the site. 

Here Are The Top Things to Consider When Managing Your Dealers Inventory! 

Who Enters the Inventory into the DMS? This is Arguably One of the Most Critical Steps in the Process. 

While there are so many tools out there to manage your inventory, having to go back to edit a unit can be a hassle. That said, whoever is entering the inventory into the DMS has to ensure that the information is correct; everything from the year, make, model, color, trim level, mileage, etc. All of which is then sent over to your inventory management tool. And while the inventory management tools in many cases will decode the VIN for you, the trim level information is not always correct. Hence why it is so important to make sure that all features are entered into the CRM. The next step(s) regarding this process is to ensure that the fields you have entered the information into in the DMS are mapped correctly in your management tool. In doing so, it can save you a lot of time and hassle. 

Do You Have Accurate Vehicle Descriptions On All of Your Vehicles - Especially Pre-Owned? 

Sure, the vendor you are using might provide you with canned, generic responses to place on your VDP. But in all reality, do those canned descriptions truly describe the car you are trying to sell? Take a minute, or two and write descriptions for those pre-owned units that not just fit the car you are selling, but ones that will sell the features on the car! For example, if the vehicle you are selling has a unique feature than be sure to mention that in the description. Or another example would be if the car is a special trim level. This can and will clear up any confusion for the customer who is looking at the car online but is unsure as to what features actually come in the car! And I am sure you have at one point or another received a phone call from a customer who is inquiring on that vehicle, confirming if it comes with the features listed from the VIN decoder. 

We Are All Playing the Pricing Game. Forget the Game, Use A Strategy. 

Most of today's inventory tools provide you reporting with regards to your average days to market supply. That report can be beneficial when it comes to pricing your vehicles, especially when it comes to pre-owned. If you know you have a vehicle that is a saturated model - with a high level of days to market supply - take the time to make yours stand out! That starts with the above regarding the description of the vehicle. Think about it, if you are searching for a car and notice that the one down the road is less expensive, but does not explain the features or has decent photos - aren't you still going to call the dealership that does, in fact, provide the features, and has good images? Most likely. This is not to say by any means that you will sell it for the price you are hoping for, but what it does do is build value in your vehicle - setting you apart from the competition. 

The Bottom Line: even if you tackle one of the three items above, it can have a positive impact on your bottom line. Knowing that for every day that unit sits on the ground, unsold, it potentially costs your dealer thousands of dollars. Dollars that have to hit that bottom line with profit margins thinning. 

Do You Have Your Pre-Owned Sales Manager Write Custom Vehicle Descriptions? If Not, Do You Edit Your Inventory Tools Canned Descriptions?