Every day your used vehicle sits on the side lot your dealer is losing money. It is no secret that the sooner you recon your pre-owned units, the better chances you have in holding higher gross, which means more profit. The problem, however, is that there are many hiccups along the way that can delay your car hitting the lot. Some processes can be implemented to address those concerns, and one of them is getting a few photos online before the vehicle is finished going through the recon process! In doing so, you can start to get traffic on the vehicle, which can help expedite the process. 

Here are a few tips for getting photos online for your recon unit! 

Take The Right Photos: You Do Not Need to Show Every Detail 

While the vehicle is working its way through the recon process, it is best to have the vehicle on your website. In doing so, you can start to get traffic on the unit. However, if you do not have any photos online, then you usually wind up having to interrupt the recon process to get the keys, and take photos. All of which can lead to there being a delay. To avoid this issue, have your inventory manager take a few photos; or better yet - when the vehicle is being traded-in have a process where the sales consultant takes specific photos of the unit. For example, many of today's CRM’s or trade-in tools can attach photos. That said, you can have your sales consultant take a photo of the front of the unit, sides, rear, and depending on the cleanliness of the vehicle a few interior pics to show off some of the features. 

The Photos Should Not Show A Dirty Vehicle

If the vehicle is filthy and otherwise unpresentable, then it is not best to have those photos online. What you can do, though is have the detailer quickly clean off the exterior of the vehicle. This way you can at least get three to five photos for your website. 

If You Have Interest in the Vehicle. Work With Your Sales Manager 

It sounds simple enough, but the hard truth is that when you do have an interest in a vehicle, and it is in the middle of the recon process, it can prove to be a little bit tricky. For example, if you were to get an appointment on the vehicle, and they have to stop the recon process, and the customer does not show, or the vehicle does not sell it has now delayed the unit being completed for another few days. If you do have an appointment on the vehicle, it is best to work with the sales manager and speak with service to make sure the vehicle is ready to go. You can also work with the customer and explain that it is still going through the state inspections. The main thing to consider is communication. The better your communication is internally, the easier it is to manage the recon process. 

Bottom Line: Simply taking a few photos of the vehicle before it goes through the recon process can have a positive impact on your dealership! Imagine being able to sell a few extra units a month because they had photos and were ready to go! 

Do you take photos of trade-in’s and put them on your website before it has gone through the recon process? If so, what results do you see from this?  
 

In a perfect world, all leads would be answered immediately, and the appointment would be booked soon to be a sale. However, the way we approach the response time can make all the difference regarding the most critical part. That is the end result. If the sole focus on the time in which it takes to answer a lead than the quality of the response can and will go down. While response time is important. It is just as important to make sure that the quality of response is not jeopardized.

Here are some of the top ways to handle response time:

The 5-10 Minute Rule

Oddly, in sales, if it is busy, the rules/process usually goes out the window. Where it becomes a “just get it done” mode. Well, the same applies to answer leads. Wherein, if the expectations are - regardless of the day - that the leads have to be answered within 5-10 minutes than the quality of response goes down. Where more often than not the BDC Agent or Sales Consultant is not reading the lead - answering their questions - or taking the time to call, email and text the customer. Perhaps just sending a canned email to then forget about the customer as they continue to the next one.

This happens far more than you would think. Especially on Mondays. Given that leads most likely have not been answered since Saturday night before close.

Stopping the Clock

Stopping the clock - unless you are actually working on that lead - is a big mistake, which can easily let leads slip through the cracks. Wherein, many CRMS offer the ability for the BDC Agent or Sales Consultant to manually click the “phone,” icon and “Complete” a call. Stopping the clock for what could be 25 plus leads. To then try and work their way through answering them. All for the sake of answering the lead within 5 minutes.

As a result, as they are working through leads with no rhyme or reason as to order in which they are answering them they soon become interrupted. Whether that is an inbound phone call, chat sessions, or answering a text. Thus they tend to forget about 5-10 leads, which could easily have been a dealer website lead that wanted to schedule a test drive. Even a credit application.

That said, rather than simply stopping the clock it is best to prioritize the leads, which leads into:

Prioritize Leads For Response Quality

As mentioned above, stopping the clock can cost the dealership sales. Given that there are several unanswered leads on Monday mornings it is best to prioritize them all without stopping the clock. For example, look at the sources - i.e., Dealer Website, OEM, & Third Party, add a note (which does not stop the clock), and then start making the calls, emails, and texts.

There have been discussions as to whether or not you should send an email, and then loop back through to call or text. However, best practice when answering leads is to call, email, and text. This way you are not potentially missing out on answering a lead. And also making sure to prioritize and organize your morning.

Bottom Line: Stopping the clock to have a good response time is never good. And while it is good to have a decent response time, the quality of that response time is just as important. That having been said, the best way to handle this is to prioritize the leads when you get in. Answering them one at a time. Where if it takes 25 minutes to respond to a lead, but it is a quality response, then that is much better than a canned email or worse not sending anything at all!

Do You Stop the Clock? What is your true response time?

Training is essential for any position, but even more important for your service advisors! If the customer continues to service their vehicle with your dealership, the more likely they are going to purchase another vehicle from you!

One of the top things your service advisors could always use a refresher course on are both keeping the customer informed, and completing the walk-around. There is nothing worse than driving into the service lane to not be greeted and or acknowledged. 

When is the last time you training your service advisors? 

Here is an article I wrote on the top five reasons your service advisors need training! 

As a disclosure, this article is by no means offering and or suggesting not to sign a dealer contract. The purpose of this article is to discuss concerns around data privacy, brand image and the use of your dealers likeness to promote their brand otherwise, which in some cases can influence new to market products and services.  On the dealer level - when signing for a new product or vendor - we have contracts to sign; contracts that solidify our partnership with a vendor, to use their products and services. I can offer firsthand, however, that in previous experiences there were only a few questions asked before signing the contract; those questions, though, were about the terms mostly - i.e., what is the length of the contract, the setup fees, how much dealer support do we get? How is the account management set up? While those are good questions, they do not delve deep enough past the surface. Below the surface of that contract are some unnerving conditions and terms. So before you sign that next contract here is some of the top things to consider. 

The Vendor Has Full Access to Your Brands Image and Content Related to Your Brands Image to Promote Products and Services. 

That question above, of course, is not the only language used in dealer contracts. However, more often than not there is a clause in the contract that offers the vendor full access to your brand image and content. Content in which they can freely use to promote other products and services. Albeit, in many cases - the vendor does then acknowledge that if they were to demo their product - using your store as an example - that they would otherwise black out personal information. The bigger question, however, is what does this mean? 

On the surface, it could broadly mean that the vendor literally unequivocally has access to your brand's image and likeness to promote their products and services. Most commonly, if your dealer has the same OEM as a potential client, the vendor could offer that “your dealer” is using this product; this is not always the case, though - the vendor might say "another dealer (OEM) uses this product."  To which they can provide the client with an inside view of how your dealer is using their product. That said, it poses some significant concerns. One of those significant concerns is that with the competitive landscape, does a dealer truly want their direct competition having inside access to what their dealer is doing?

Moreover, while I am cognizant that a vendor has every right to promote their products and services, there have been instances - depending on the product and or service - where it has been asked for the vendor to sign an addendum. An addendum that is a non compete clause - a clause that protects your dealer - where they cannot sign up a dealer that is a direct competition.  This is by no means to offer and or suggest that the vendor you are currently using - and or wanting to use - would be willing to sign an addendum to protect your dealership from your direct competition. However, depending on the scope of the services it could be a question worth asking. 

Who is Responsible for the Dealers Data? What Rights Does the Vendor Have When it Comes to Using Your Dealers Data? What Does All of this Mean? 

As mentioned above, in many cases the vendor can use your data when offering a prospective client a demo. However, the vendor (in many cases; this is not to say all do) would black out personal information. For example, a vendor might offer: “I have a dealer in your market using this product. Here are some sample reports I can show you.” Where, they are not using the name of your dealer; they are however showing the prospective dealer your information, which (as mentioned above) is in many cases blacked out. While this might not seem to be a big concern; it is a concern worth noting. 

With regards to the privacy of your dealer's data, it is a considerable concern as to what the vendor can otherwise do with your dealer's data. Namely, can they use your data to offer new services and or sell your data to other companies. In which case, they can then use that data to develop new to market products and services. It has also been noted that are vendors who have “pixels,” in which case they were deliberately gathering data from dealerships websites. That data could then be used for what was mentioned above. At the end of the day, the biggest question - with reference to these concerns - is what access and or rights does the vendor have with your data? If there were to be a data breach with the vendor because of their using your customer's data in other means other than the purpose of their product or service - what does this mean for the dealership? Is the dealership then responsible for the issues? Alternatively, is the vendor responsible? This is a concern because in many (not all) of the vendor contracts, if it states that they have full access to your data, then they might not be liable. Further, in many cases, the language used in their contracts is very ambiguous, which raises even more concerns. That said, it is best to review those questions and ask the vendor directly what it actually entails and or means. Specifically, how does it apply to your dealership? 

Data Protection. Who Has Access to Your Data? How to Manage Third Parties Access to Your Data. 

It is not uncommon for a vendor to integrate directly with your CRM. For example, you might have a trade-in tool that is integrated. As such, there are concerns to consider; that is, what other access does that vendor then have with your customer data? How is your data then protected because of adding the vendor? For the contracts, I have reviewed, the vendor is mostly not responsible for what the other vendor does, which makes sense.  However, it does not necessarily then mean that the CRM vendor should not otherwise have safeguards in place that disable vendors from using the data in ways that do not pertain to the purpose of their relationship with the dealer. That being said, it is best to then review and inquire on these concerns directly with the vendor who is integrating the new service/product into their CRM. Asking them what access does the new vendor potentially have, and what they are doing to protect your data. Ensuring that there is clear communication between all parties that are involved. In doing so, it can assist in protecting your dealership should there be an issue. 

Bottom Line: this is by no means accusing vendors of any malicious practices and or otherwise stating that vendors are purposefully - or intentionally -  using your dealer's data for their own good to bring new products to market using your dealership's data.  Rather, the purpose and context of this article is to discuss how your dealer handles vendor contracts. With the notion that there is nothing wrong with asking the vendor what their contracts actually mean when it comes to their clauses, which sometimes states their overall ability to use your dealers brand and image to promote their products and services. In addition to inquiring what measures, if any,  they have in place to ensure that your data is as safe as possible from a data breach. Understanding, too, that not all vendors have secured information (such as social security numbers, addresses, etc.); however, if one of your vendors is integrated into the CRM - what if any access do they have to the secured data, which could pose risks to that secured information? There are also lawyers - though costly - who can assist your dealership in navigating the context of the language used in their contracts. The purpose of these discussions with lawyers is to ensure that you are protecting your dealerships most valuable asset, its data. 

How do you handle or approach vendor contracts? Do you have outside lawyers review contracts before signing them? Do you take time to review contractual concerns with your dealer team before signing? 
 

In the meantime, join the conversation here! 

It is evident that much of the training that we execute on the dealer level is relatively the same content, no?  In that, the topics that we train on have not evolved; other than new tools that can assist you in how you approach the process, itself. All of which poses a few questions; why are we continuing to train on the same topics, and what can we do to move to the next level? That is enhancing what we already do. 

One of the reasons, perhaps, is the high level of turnover on the dealer level. For every new hire - with some lasting just a few weeks to a few months - the dealers (for those that are doing training) are shelling out thousands of dollars to train their new staff. To then have to spend the same money to train their new hires. The other issue we face is that the content, itself, has not evolved; wherein, before you hire the next trainer or training company it is best to review the following: 

Just Because We Make the Effort to Train Our Sales Consultants Does Not Mean the Training Worked. How to Offer Relevant, Meaningful Training. 

There is this notion that by the act of training, itself, your issues can and will be resolved. This is especially an issue when your sales managers typically offer that they are too busy and forget to tell their sales consultants about the training; despite having been planned for weeks in advance. The moment that your staff realizes that your managers are not engaged with the training they can quickly lose interest.  I cannot tell you how many times I have experienced this excuse and issue on the dealer level. 

The other issue this poses is that even though your sales consultants and managers might know the answers; or have a solid understanding of the content. What they do not often know and fail to realize is that the reason you wanted this training - in the first place - is because you want the sales process (or other processes) to be approached differently.  The idea that your dealer's culture cannot effectively change - or necessarily see the benefits of the training - if not everyone is following the same new approach.

The other concern with this mentality is that it can create a very confusing environment for your new hires, no? The new hires are trying their best to act on what they learned, but if your sales managers are not aware of the changes, the new sales consultant might not be doing it the way the sales manager wanted. As such, it can create not just confusion, but more importantly, it can create disinterest. Disinterest leads to disengagement. Yet we still - not always, but mostly - tend to say “well the new hire just did not have what it takes.” So while that can be the case in some instances, it certainly is not the case for all of the new hires your dealership lost. 

Top Things To Avoid When Hiring Training For Your Sales Team. Most Importantly, Speak With Your Managers First. 

Not Speaking With Your Managers First. 

This is not to say that you cannot make decisions without them. However, what this does offer is making sure that your managers are on the same page with the training. If you make a decision on training - telling them it was what the owner wants - without speaking with them it can cause dissension from the beginning. The other benefit of talking with your managers first is to understand better what some of the potential breakpoints are. In doing so, it gives your managers the chance to offer what areas have potential. The goal with this approach is to provide your managers with the opportunity to open up - having a meaningful dialogue - to come up with a unified approach. 

Not Getting Involved Yourself And Taking the Time to Speak With the Training Company. Let Your Managers be Involved. 

It can seem more natural just to let the training company have free reign when it comes to training without having spoken to them first. Instead of using this approach,  it is best to review their training material making sure their processes are what you are looking for. However, more importantly, you need your sales managers buy-in. Otherwise, it is that much harder for the training to be effective. It is also just as important to explain to your managers that this training is to help them; not to browbeat them or overstate their failures. If you say something to the effect of “we hired training because you are failing as a manager” or "you are to busy to train, so I just hired a company" then it is not going to help the manager, and it certainly is not going to be executed on the dealer level. 

Showing the Trainer Reports Without Checking their Accuracy. Trainers Might Eat this Up. Get With Management First. 

I know first hand how frustrating this can be. There is nothing worse than getting called into the GM’s office because a report was pulled - one that you do not use - so the information was not accurate. At which point, the trainer was outlining everything you must be doing wrong. It is not a pleasant experience, because there is also nothing worse than trying to explain why the report is inaccurate. To then try and have a diplomatic dialogue to clarify that the report you actually want to view is “report name.” To which the trainer has already capitalized GM’s attention as to what we are potentially doing wrong. To avoid this approach, it is best first to review together which reports you use, and what are some of the areas that have an opportunity for improvement. In doing so, when the trainer does arrive, you will have already reviewed, collectively, which items need focus — allowing the conversation to entail how they are going to approach the opportunity vs. trying to actualize the opportunity with inaccurate reports. 

Bottom Line: 

Training can be very beneficial to the dealership. But not all training is created equal. Where the dealer is just as responsible for ensuring that their management and staff are made aware of not only when the training is, but the purpose of the training. In doing so, you will most likely get the much-needed buy-in from the management. It also then gives you (as the GM or owner) key performance index’s to measure after the training. Whereas, if the managers (and select sales consultants) did not participate in the training because they were to busy then you cannot expect them to be in alignment with the new process changes. 

At the end of the day, make sure that you are working as a united front versus you against them; and while that might not be the intention or purpose of you bringing training to the dealership, the perception can say otherwise. Internal perception is just as important to consider when it comes to retention. 

How do you handle training? Do you work together as a united front to select the trainer and training content? 
 

As much as we would like to pat ourselves on the back for a job well done - are we really doing the best we can when it comes to long term customer follow-up? In just reviewing the lead volume - not even considering unsold showroom traffic - it seems impossible to follow-up with all of the leads for that month. Let alone the leads that came in within the last 60 - 120 days. That being said, there has to be a strategy in place to ensure you are getting the strongest ROI possible on your various lead sources.

Here are some of the best practices to consider when managing long term follow-up.

What do you consider long-term follow-up?

Every dealership has their own definition of what longterm follow-up means; everything from two weeks, thirty days, sixty days to ninety days. So while there is no one single answer as to what the best method is, it is essential to make sure that your dealership is following up with the right customers. Otherwise, as more and more leads come in the less likely, they are to follow-up with the right leads.

For example, if a lead comes into the CRM, and you have emailed, called, texted, and sent the customer a sales blast, but they have not responded after two weeks then perhaps it is time to move on. That is not to say that you should not continue to market to the customer. However, the reality is that they have not responded. Albeit, it is just as important to review the content that was sent to the customer as well. Wherein, if there is a noticeable trend of customers not replying, then it is best to revise the content - i.e., if you are sending the same email to everyone - the message (content) of the email might not apply to that customer; the message has to translate and make sense - i.e. why send a customer who is looking for a specific used car a new car email blast?

Not all leads are created equal

It is no secret that not all leads are created equal so then why are spending the same amount of effort on leads that do not get the same results? Instead of focusing on follow-up, all the same, it is best if you start reviewing each lead source and make sure that they are each closing at a solid rate. Namely, if you are closing at a decent rate on one source than spending more time on that source might not offer the same ROI. Instead, look at another source and see if the juice is worth the squeeze; wherein, if you were to increase follow-up by one or two additional weeks what are the actual sales opportunities? If there is a chance or opportunity for two or three additional sales than it could have a better ROI.

Used Car Leads Tend to Sell Faster

With used car leads selling faster than new (not always the case, but more often than not they do) we need to put more of an emphasis calling these leads. The first group of leads that need to be called are ones with key buying statements, which can be any of the following but not limited too:

- Ready to Buy

• - What is the sale price

• - Is this Used Car still available (if this is the only comment; chances are it is one of the selections in the call to action menu)

Once you have reviewed the leads with responses and or questions, then it is time to review the dealer website leads first. After that, take the time to review the third party site leads. The purpose behind this is that a customer who has converted off your site is a customer who has most likely selected your store - versus a customer who has converted off of multiple sites.

New Car Leads Have A Longer Buying Cycle.

New Car leads can take more time and attention with the buying cycle being a bit longer than the used car leads. That said, there is nothing worse than just stopping all contact with the customer after the first few weeks! However, at the same time, the dealer will get several hundred new leads the following month. Meaning that if we do not speak with the customer for the first two weeks, they go into the abyss. Imagine how many potential sales we are losing by failing to follow-up past the two-week mark!

To avoid this, it is best to break down the new car leads. That is Dealer Website, OEM, and third party sites. Once you have broken down the leads, you can start your direct marketing offers; such an email blast. This is especially good if you were to get additional bonus cash and or have specific units that are at a lower price point that have to go! As the customers engage with the email blast, it is then best to call those customers. Turning that lead into a sale!

Bottom Line: following up with hundreds of leads is no easy feat, which is all the more reason to have a process in place. One that helps your dealership get the best ROI possible! To make this happen, it is best to review your current closing rates; making sure you do not reinvent the wheel for the sources that you have a good ROI on. Instead, take the time to review areas of opportunity. Once you have selected a few sources to work on - make sure that the marketing is not just relevant, but that you have a team in place that will make the phone calls, texts, or emails to those customers who have re-engaged with you!  Otherwise, the efforts could turn into wasted time! And no one wants to lose a potential sale.

How do you handle long-term follow-up? What kind of marketing efforts does your team do?  

It has been well over a year since I last spoke about texting on the dealer level, but it does not seem that we have made that much progress in the conversation. Other than dealers are working towards using CRM's that have a texting tool implemented in the CRM. However, they still struggle with the fact that their sales consultants are using their own devices to text, email, and call their customers. Has your dealer made any significant changes regarding texting, emailing, or calling from their personal devices? 

Check out the original blog post here to join in on the conversation!  

While we might understand the value in why buy messaging, there are often small disconnects between the why buy message and how it is executed on the dealer level. In that, many dealers have a why buy message, yet their staff is either not aware of and or does not know it off the top of their head. This can not only create confusion on the dealer level but can also cause for the customer to become disenchanted.

More importantly, though, what is a why buy message? Has it changed? Both are good questions. A why buy message is not just a literal message we recite to our customer or have presented on our websites and external marketing. The why buy message is an integral part of your dealers overall branding. Everything from the way your dealer approaches the sales process to how you interact with the customer. So instead of focusing on a one point message, here are some statements and suggestions to better align your why buy message with your customer base.

What Does It Mean to Be A Customer at Your Dealership? Stop Looking Past One of Your Most Valuable Why Buy Messaging Assets - Dealer Reviews!

There are a lot of slogans dealers use to state why a customer should buy from their dealership, no? But we have to ask ourselves, is one statement enough to convince a customer to purchase a vehicle with us? Knowing that a vehicle purchase is most commonly the second most expensive item they purchase? That said, the message has to be more than a catchy slogan, or a paragraph that touts your accomplishments. One of the ways to present your dealer in a meaningful, relevant way is to use your reviews!

A customer review is invaluable to your dealers why buy messaging and branding; however, we have to keep in mind if the review is older than 90 days than the customer might not find as much value in it. Versus a review that was done a week or a few days ago. Yet so many dealers do not even ask their customers for a review, which is only costing them business! To avoid this issue, and use your customers voices to your advantage the sales consultants needs to ask for the review. Asking for the review should be a part of the sales process. That is asking the customer - at the time of delivery - to complete a review. It is also a way to make sure the customer had a positive experience. For example, if the customer were to say no - then you know you have an issue to address, which can also have a positive impact on your dealers CSI score!

Use Your Dealer Reviews in Your Email Marketing and Showroom Floor!

There is nothing wrong with promoting your customer's reviews. If you have a positive brand image, use it! Some of the best ways to take advantage of those hard-earned reviews are to use them in your email correspondence. This is especially true when you are responding to a third party lead. A lead where the customer has not yet necessarily chosen your dealership. So by sending them your positive reviews, it can help set you apart when it comes to your competition. This is not to say or offer that it will work every time. However, a dealer who has several positive reviews has a stronger shot at selling the customer their vehicle.

Another effective way to incorporate your why buy messaging into your dealer is to have pop (point of sale) marketing on the sales floor. Perhaps printing out on a tabletop tri-fold the last three to five reviews. This way the reviews are not obnoxiously standing out, but rest assure the customer will take notice. And if you have won customer service awards then make sure to have them displayed, proudly, in your showroom. This can often be a great ice breaker if your customer is starting to show some concern with their purchase. You can easily reassure them that they have made the right decision by working with you.

Bottom Line: why buy messaging is certainly not limited to the above. However, even if you only adopt one of the two ideas it can set you apart. And for those who are struggling to collect reviews from your customers you have to spend time working with the sales consultants. Both explaining and encouraging them to ask for the review. You can even - with many CRM’s - set up an email that goes out once the lead is marked sold. The email does not have to be too long, either - get to the point, and ask for the review! Once your sales consultants start to get two to three reviews, it will catch on.

What does your why buy messaging look like? Have you used reviews to encourage your customers to purchase with you?

We spend a lot of time reviewing ways to improve the customer's experience whether that is through surveys, studies, or reading endless reports. However, the one thing we tend not to discuss is the redesigning of the customer's experience. That is, instead of layering in small changes why not redesign the experience? One of the most significant changes in the automotive industry regarding the customer's experience in the last few years is the “digital retailing” sector. However, as we know - the digital evolution, itself, is not enough to change the customer's entire experience. In which case, there still seems to be a disconnect in what we are changing versus what the customer actually wants. That said, there is a conversation to be had - one that discusses some of the following topics.

Simply Saying You are Transparent Does Not Cut It. It is an Overused Ambiguous Word. 

It has been one of the biggest buzzwords in the auto industry for some time and in many cases still is, but what are we exactly being transparent about? There still might be some confusion as to what the customer wants transparency on. Such as the process of purchasing a vehicle, trade-in process, to the way in which a car is priced. So the question is, simply, are we ignoring the customer's actual request for transparency? Or do we on the dealer level have a different definition of transparency that we use to enhance their experience? 

In today's market, customers want answers. Think about it, with all of the apps and sites out there that give customers their credit history, rates, etc. they have more information than of what they are accustomed to, which does not mean that we can not make a profit. So the question is what are we actually transparent about? Some of the common statements are: we have low pricing, we do not play pricing games, we have OEM certified technicians, we care about our customers, to we have good reviews. All of which is great! There is nothing better than a good review; however, even when reading the reviews - those that are good - the customer still states that the dealer was “honest, straight forward, low pricing, but it still took three hours to purchase a vehicle” or “we are so happy we ended at (dealership). We visited multiple dealerships before making the purchase.” That says there is still a disconnect in how a dealer translates transparency. 

Instead of Talking About Transparency Let’s Focus on Being Consistent. Let’s Make the Buying Process Smoother. 

Perhaps five to six years ago dealers could get away with crazy pricing rules or other various fees. But things, as we know, have changed; especially for new vehicle sales. The OEM’s are much tighter when it comes to what a dealer can price their vehicles at as well as how the pricing structure works. That said, it is time to move past the word transparency, and look at changing the customer's experience online. To do so, here are two key elements to consider: 

The Process 

Many of us forget the nuances of purchasing a car because we live and breath the dealer world. So much so, that we spend more time defining transparency than actually taking the time to approach one of the most crucial aspects of purchasing a car; the process. I have yet to see a dealer create a video that explains the buying process. Wherein, it would be a short one minute to two-minute video that highlights how to buy a car. This is especially important for the younger generations who have not yet purchased their first vehicle. I can tell you first hand how many times I have dealt with customers who had not yet bought a car. They are often excited, but nervous. If we took the time - in the beginning, while they are doing their research -  and put them at ease by explaining the process, it could pay off for the dealership! Not to mention, it will save the customer several hours of their personal time as they do not have to go through the motions at the dealership, again, with another sales consultant who happens to have a very different sales process than of the one in which the customer initially spoke with. It is not a fun situation. 

Vehicle Display Page. Less is More. 

It is a known fact that the fewer options we have, the easier it is to make a selection. Yet more often than not dealers will have several call to actions on their vehicle display pages. So much so that it can become overwhelming for the customer to choose which one best meets their needs. And let us not forget that a customer is not very likely to select the “lead form fill,” and write a paragraph. Instead, they will perhaps choose “get quote,” which does not show in the CRM as “get quote,” where the sales consultant will call them and the customer has to repeat what they just asked; “get quote.” 

This breakpoint can cause for frustration on the customer's end; this example is “transparency” issues. Namely, the customer expects a response/answer that corresponds to what they are asking. It would be like me saying “is the car blue or grey?” and the answer was “what color are you looking for?” - It does not make sense, no? Avoiding this breakpoint in the customer's experience can have a profound impact on their perception. The better the customer's perception is of the dealer the better chance you have to close the customer. 

Bottom Line: instead of focusing on a word that gets lost in translation it is best to focus on actionable, attainable items that will enhance the customer's experience before they call into the dealership or make their visit. Remembering that just like us, we want answers to our questions. There is nothing more frustrating than asking a question and not getting a straight answer. Lastly, it never hurts to take a moment in the morning - before things get busy - and review your own website. Take a minute to put yourself in your customer's shoes as if it were your first time visiting the dealership, and ask yourself “does this make sense. Is the website missing anything? Does it have too much?” if you are asking yourself these questions it will help you make the necessary enhancements.

Once you have reviewed the website write down a list of things you would like to change at which point have one of your managers complete the same exercise. You can then compare your notes and make time to speak with your vendors. 

What does transparency mean to you? How do you enhance your customer's experience? 

You get a bonus. He Gets a Bonus. She Gets a Bonus. We All Get Bonuses? It is not uncommon for the sales consultant to receive a year-end bonus based on the volume of their sales, which does not sound bad, right? As for the volume of the bonus, I have seen $2.50 per unit under 125 units sold and as much as $7.50 per unit for those above 250. The bonus was then paid in December. So what is exactly wrong with this bonus structure?

There is nothing wrong with bonusing your sales consultants for their hard work. However, when it came to the top dogs, they would usually take it easy in December knowing that they were about to receive a huge payout. Knowing that selling a few more units was not that much more money. If a dealer is counting on those few sales consultants to carry their December, it might not work out. For those who did not sell as many units, less than ten a month, the bonus was not necessarily warranted; especially if the sales consultant did not have the best CSI scores, which can cost the dealership thousands of dollars.

That said, here are some of the top concerns, and alternative approaches that are not only beneficial to the sales consultant but also the dealership.

What About the BDC Managers/Marketing Directors? Where is their Bonus?

I get that BDC Managers or Marketing Directors are seen as overhead - the idea that they do not physically sell the unit. However, that does not mean that they, too, do not deserve a bonus. After all, the BDC Managers are the ones managing the CRM, vendor accounts, phone calls, appointments, etc. A $1,200 to $1,500 can go a long way. Not just for the overall morale, but it will also encourage them to start the new year off on a strong start. We tend to forget how much work they do on a daily basis. Not to mention, all of the extra things they do that - in so many cases - goes unnoticed.

Sales Managers? I Know Results Are Expected. But They Deserve A Year-End Bonus.

In our industry, it is not uncommon for the sales consultant to earn more than their managers, which seems odd; however, is warranted depending on the situation. That does not mean that your sales managers do not deserve a bonus. One of the ways to approach this issue is by giving the managers a year-end bonus if they have hit their objectives. The objectives could be KPI’s that are well thought out, and in alignment with the dealership's goals. However, in many cases, the dealership's goals - for bonuses - are so unrealistic to the point where they will continually change the pay plan if they believe their manager or staff is making to much money. You might not think that happens, but it happens far more than you would think or want to admit. Where the dealer would rather run the risk of losing a solid employee than pay a decent living. It's a vicious cycle that can have a detrimental impact to a dealers bottom line.

The Bonus Can Be Tied to Personal Goals Too!

Selling units are the primary goal. We get that. However, there is more to selling units than the physical act of doing so. In fact, the more connected the employee or manager is to the dealership the better their results will be. Instead of focusing a bonus on a number focus it on the bigger picture. That is their performance. If there are specific areas in the dealership that need focus or attention align their bonus with the task at hand. In doing so, it will encourage them to take on the extra work-load. In doing so, it not only builds their experience, but it also has a positive effect on the dealership.

Bottom line: it is easy to cut a check based on units sold without thinking twice. However, there is more to bonuses than simply stroking a check. Not to mention, there is other essential personnel that does not get the credit they deserve, and while $1,200 - $1,500 does not seem like a lot of money, it can go a long way in not just boosting your dealer's morale, but encouraging them to continue to go the extra mile. So instead of just stroking the same check year after year work with each employee and design a bonus plan that makes sense for both them and the dealership.

How to does your dealership handle year-end bonuses? Does your BDC Manager or Marketing Director Get a Bonus?