Beltway Companies
What is The Customer Really Asking For When Submitting A Lead?
We spend a great deal of time trying to figure out what the customer really wants and or expects from us at the dealership. Albeit, this is a loaded statement; one that delves into the conversation surrounding omnichannel experience - in addition to what omnichannel even means. For the purpose of this conversation, offering an omnichannel experience starts with the customers experience online. The idea that perhaps we are offering to much information on the website. Where the average dealership has as many as five different options to contact the dealership - providing everything from chat, messaging, text, call, and email. So while it is not necessarily a bad thing to offer the customer flexibility in how they inquire; the bigger question is “what are they inquiring on” and “how they expect to be answered.”
Think about it for a moment, not all dealerships have their lead sources named correctly. So when the lead converts off of the website whether that is a click-to-call or a lead form fill the BDC Agent or Sales Consultant does not always know where the lead derived from; it could be a general inquiry on the VDP, Get ePrice, or Get Quote to name a few. In which case, the customer has to say (if they get them on the phone) “I was calling to get the eprice,” to which the typical response - even today - remains “well to get the best price you should come in and meet with my sales manager.” Now, referring back to offering an “omnichannel” experience to the customer; the customer thought that by choosing that ‘method’ of inquiry, they were going to get that information in return. All without having to first speak with a sales manager, and or find out that the price includes discounts that s/he otherwise do not qualify for. Hence why there are customers who become frustrated with the whole online process.
This is by no means offering that the customer should not come in, either. In fact, more often than not, the customer might wind up purchasing an entirely different vehicle. The point of this example, however, is to offer that we have to be consistent in what that call to action means on the dealer level. So that when the customer does call into the dealership, whoever is answering the call or lead can provide the customer with a good experience, one that is in alignment with an omnichannel experience. What’s more fascinating though is that if you were to ask the sales consultants - or even managers - what options the customer has online to inquire on a vehicle, I would guess that they would not know all of the different options.
One of the first ways to tackle this situation is to ensure that the sources are hitting the CRM correctly. Where your website provider can in many cases name the form for each call to action. So that when the lead hits the CRM, your BDC Agent or Sales Consultant is aware of where the lead came from. In turn, allowing them to offer the customer a better experience. As there is nothing more frustrating for the customer to inquire on a vehicle using one of the many choices provided to them, to then not have their questions answered. The other thing to note and discuss with your team is how to respond to those questions based on the lead. So when the customer does ask “I was calling to get the ePrice,” you can respond with something to the effect of “We appreciate the opportunity to earn your business here with us at (dealer), and to answer your question that is the ePrice and we are very competitively priced. But before I get ahead of myself, is this the only make and model you are considering? We have over 100 vehicles in our inventory, and if I were able to save you some additional money is that something you would be open to?” This, of course, is just an example, one that answers their question but also inquires about the customer’s flexibility. At which point, the goal is to get them into the store asking if they have a trade-in, etc.
The example above is also not as easy to handle effectively though if we are not aware of where the lead came from much less ensuring that your dealerships BDC Agents or Sales Consultants are aware of what the call to action even means. The bottom line though is that it is essential to ensure that your lead sources are labeled correctly and that you have outlined what your dealer considers the best way to respond to the many call to actions. In doing so, you are not only offering the customer a good experience, but it increases your chances of turning that lead into a sale.
How do you handle training your BDC Agents or Sales Consultants when it comes to call to actions?
Beltway Companies
Top Reasons to Find A Vendor that Fits Like A Glove
Taking on a new initiative can in many ways be overwhelming. There is often the fear of "are we going to get this right? Or "Do we really need this product. Will this product move the needle?" of which both are valid questions. It is these very questions, though that often prohibit us from taking the first step on a new project. Leaving us - on the dealer level - wondering what the next steps really are. The idea of are we catching onto a trend or a fad; one that can wind up costing us thousands of dollars in the long-run.
Beyond the nagging questions in the back of our minds, we also ask ourselves the same questions when it comes to partnering with the right vendor. Where you often hear the GM, Marketing Manager or Sales Manager ask the question "what are other dealers (OEM's) doing? What is working for them?" to which while the vendor can - in some ways - answer that question; each dealer has its own needs, no? Not all dealers - despite having the same OEM - are the same. So to latch onto an idea, itself because another dealer - with the same OEM is doing it - does not always make sense. Keep in mind, though - the product the vendor offers might be the same, but the way in which you leverage the product for your dealership is not.
Another aspect we as dealers face is the demo phase; a phase that can cause for us to overthink the product. Asking questions that we might not otherwise ask. Questions that are often actually objections because deep down inside we are not one hundred percent sure whether or not to make the move. Just like in sales, we have to overcome the customer's objections; working with the customer to not just understand their needs, but to find the right vehicle. It is the same with vendors, and it takes the right account manager not just to understand the dealer's needs, but to actualize the dealer's goals. It is no secret that there are vendors who - once the dealer has signed up - are on autopilot. Not giving the dealer the time they need to devise a smart growth plan. One that could evolve into layering in additional products that will only compliment the foundation they have built.
As the title mentions, "finding a vendor that fits like a glove" is a crucial element in championing your dealer's success. To be a champion, however, they cannot be a one size fits all vendor. They need to be strategists who align their dealers with the right products and teams. But even more importantly, they have to mold the product around your dealer's goals. Beyond finding the right fit, your dealer has to have the right account manager - they are the pillars on which the partnership is built on. They to have to be a strategizer. One that works tirelessly to find the right content, spending a considerable amount of time before reaching out to their the dealer to discuss the plan of action.
The bottom line is that we have to move onward and upward, and that means finding the right vendor that understands our dealer's needs. The idea that while we might not have all the answers, and or are concerned with taking the next steps. It starts with interviewing the vendors, and in doing so, you can find the right fit. A fit that can take your dealer to the next level. With the idea that instead of having a singular focus of what the other dealers are doing that is successful - which can often only just increase the internal objections - focus on your dealership! Devising a plan of action with your respective account manager who can filter out the white noise, and get your dealers name out there.
What is holding you back from making the right partnership? Do you get caught in the autoloop of vendor demos?
4 Comments
AutoMobile Technologies, Inc.
100% agree, Derrick. The Account Manager/Client relationship is crucial to project success. Often, a new product or service is acquired in order to address a macro issue like, "turn cars faster" or "increase showroom traffic". A good vendor will work with the dealership to identify the micro drivers of those macro problems, and align those with their product features and capabilities to address and measure the impact. The best solutions (and relationships) happen when the vendor takes the time and energy to really understand the dealership's needs, processes, people and culture, and then adjusts implementation to accommodate all three. Look for vendor/partners who have the flexibility to adjust their offerings to suit the dealership's specific operations in order to provide maximum benefit.
Automotive Title Connections
Very good Derrick, similar process for searching for good hires.
Beltway Companies
@Marie, that is a great point, which is why I have never been a fan of simply relying on the resume. The resume good look *great* but at the end of the day, it comes down to the employee fitting into the culture. In addition to how their skills can be layered into the dealer's goals, collectively. I cannot tell you how many times a candidate was hired, but they did not fit the culture, which meant they turned-over, costing us thousands of dollars, leaving us right back at square one.
Beltway Companies
@Ted, thanks! Very true, the other thing too - on the note regarding macro problems - is the fact that many marketing vendors do not spend the dealers advertising budgets effectively. Wherein, if it is not optimized, they could eat through their budgets very quickly; leaving the dealer with abysmal results, spending far more money than necessary.
Beltway Companies
ATTN: Being A Boss Isn't About Managing. It's About Leading.
In the last year, I have not been a direct supervisor - something, to be honest, that I did not miss. So I had to ask myself the honest question: what about managing did I not miss? Managing is not easy, we get that - you have not just to lead the team, but more importantly continue to develop the team, which means you are balancing personalities, finding their strengths, to then orchestrating them all together. This is not an easy task, and now that I am a manager again, here are some of the top things you should also consider when you are managing a team.
Do Not Be Afraid to Let Your Team Lead a Project. They Cannot Develop or Grow if They Are Not A Part of the Change.
It can be easy to try and manage everything yourself: everything from website changes, vendor management, etc. However, the truth is that no one person can effectively manage every facet of the business. This is something that I had to learn, in my last group while I did allocate work to my team they were not given the autonomy to complete and develop new projects. Something I wish I were allowed to do. That said, now that I do have the autonomy to have them develop new projects we can - as a team - effectively diversify our projects.
One of the best ways to do this is to have a set of goals. Goals that do not just affect the team, but offer smart growth to the dealership. Everything from enhancing the website, working more effectively alongside our vendors, to most importantly working directly with the sales consultants. So while the autonomy, itself, does not necessarily mean that my team has free reign. The goal was to empower the team; working collectively to create realistic goals. Sustainable goals; and most importantly, goals they helped create.
Do Not Get to Involved in the Day to Day Work. But Remember Where You Started.
Sometimes we get too entrenched in the day to day work; we can often forget about the bigger picture. Namely, as a manager when you get too involved in the day to day operations, it offers you less time to think forward. Whether that is creating a new project for the team, or increasing your team's overall effectiveness, this by no means is offering that we do not support our team in what they do, either. Instead, it means that as a leader, we always have to be looking forward; understanding what projects are most important in offering our dealership success. Another significant aspect of assigning a project to your team is that it empowers them to both learn and grow. No one wants to become stagnant or disenchanted because they do not believe that they have the chance to grow and develop within the company. And as a manager, by assigning projects, it helps you better understand what their individual strengths are and what they, too, can bring to the table.
Do Not Be Afraid to Hire Somone Better than You. Or This Can Lead You to Failure.
There can - depending on the companies culture - be this fear that if you were to hire someone better than you in an area that you could lose your job. Or that your employee might outshine you, and get all of the credit for the department's success. And while at certain companies this might be the case - you cannot lead like this! In fact, in doing so, it can and will eventually lead into failing not just the team, but yourself. Not everyone can be a leader (manager), and not every leader (manager) can be an employee. It works both ways. If you are a good leader, you will let your team shine, allowing them to bring their own strengths to the table.
Do Not Roll Your Team Under the Bus. As A Leader, You Are Responsible for Your Teams Success.
This is not to say that your team might let you down, but you have to ask yourself the hard question: did I fail my team? We are human, and we will make mistakes. But the last thing you want to do is pass all of the blame onto your team. Instead, use it as a learning experience and move forward. This will not only increase your chances of earning your teams respect and trust, but it shows your ability to lead the team in the right direction. The other thing to consider is looking back at why you failed, which in some cases can offer you the means to speak with your employees to prevent this from occurring again. But do not angle the conversation in a way that belittles your employee; focus on the positives, and how you can work as a team to prevent the mistake from recurring. We have to remember that we make mistakes, too and were once in their shoes before we got to where we are.
Bottom Line: Leading is by no means easy, but a good leader will work with their team to leverage their individual strengths in a meaningful, relevant way. One that not just compliments the team, but most importantly offers the dealer success.
Do you include your team in projects? What is one thing you have learned as a leader on the dealer level?
2 Comments
Dealer Analytics
Hear, hear! I wish more managers understood the importance of leading vs. managing. One motivates and inspires participation, the other constricts and belittles efforts. On the point of hiring people better than you, I've also seen way too many times the exceptional employee getting squashed by an insecure manager. Sometimes even fired! If we hire people better than we are, we build a team of inspired leaders. If we hire people worse than we are, we build a team of disgruntled followers. Great article - thanks for sharing.
Beltway Companies
Thanks, Tracie! For sure, and more so - while the leader has to be open, and hire talent - the culture can impact their decisions. It is a scary thought that your dealer owner (and their exec team) can partially create such an environment. I cannot imagine how much it costs them annually in new hires, and lost productivity.
Beltway Companies
Top Reasons to Explain the Sales Process On Your Dealer Website!
I am the first one to offer that I am not always fond of relating specific automotive examples to other industries. Understanding that while it is essential to think about things from various perspectives; certain processes and elements are automotive specific. One thing, though, that we can learn from other industries is the explanation of the “process.” Namely, what is involved when it comes to purchasing a vehicle. Think about it, we sell cars every day, but people do not purchase them daily. So while we understand - in our sleep - what it takes to purchase a car, not all of our customers do. That said, we already know how stressful buying a car can be, so if there is anything we can do to make it easier, then we should do it! Of course, making sure it is mutually beneficial for the dealership.
Here are some of the top reasons to explain the buying process online!
Customers Often Do Not Know What they Need to Bring When it Comes Time to Purchasing A Car:
We have all been there; that is the customer agrees to purchase a vehicle from us, but they do not have their pay stubs, credit application, key fobs, bank statements (if needed), pay off, insurance card or anything else needed to make the purchase. In which case, the customer has to spend that much more time at the dealership to make the deal happen. Or worse, schedule a time to come back into the dealership, which can in some cases lessen the chances of their returning.
To avoid this issue, dealers could easily create a quick video (no more than a few minutes) to outline “things to bring on your visit,” which would offer the above items. In doing so, the customer not only understands the everyday things to bring, but it can also save them time at the dealership. There is nothing worse than being held up in F&I because the customer does not have their insurance card, or is otherwise missing important documents. Not to mention, if that customer is held up it only means that the next customer to hit the box is going to be delayed. And it is no secret that the customers ‘experience’ often lessens when they are made to wait too long before signing. This is not by any means to offer that you explain everything in the video, either. Instead, it is a means of offering the customer ways to save time making for a better, smoother experience at the dealership.
If the Customer Has A General Idea of What to Expect they Are Often More at Ease:
This reminds me of what it is like to buy a house; there is a lot of information that is required, but a lot of it is similar; proof of income, insurance (home), bank statements, credit application, etc. So while this might seem to be common sense, we have to remember - as I mentioned above - the customer is not in the market every day, and might not otherwise really know what to bring. Given that we know how stressful it can be just buying a car imagine what it might feel like to gather up a bunch of documents without knowing what you really need? And let's be honest, how many customers come in with everything - I mean everything, including having already added the VIN to their insurance - when coming in to meet with you? Very Few! And from my experience, this happens more often for pre-owned vehicles where the customer is purchasing out of state. That said if we took the time to explain which documents are most commonly required to purchase a car the customer will be at ease. Better yet, if the customer is not anxious and or worrying about s/he needs to purchase a car, they can spend that time and energy focusing on what is most important; finding the car, they are about to purchase!
If the Customer is Willing to Bring All of their Information for their Appointment Chances Are they Are Ready to Purchase. Most Customers Do Not Visit the Dealership for the Sake It.
When I first started in the industry, I was always told “tell the customer as little as possible, and just get them into the store,” which looking back - that only caused for multiple issues. Everything from the customer having to make multiple visits, not purchasing, or having expectations on being able to purchase a car that was not within their budget. Of course, simply telling a customer what documents to bring in is not going to change that all, either. What it can do, however, is offer a glimpse into where they are in regards to making the decision. In that, a customer who is willing to bring in the common documents is usually ready to go. In turn, allowing you to focus on ensuring that you are finding them the right vehicle - to which you can - in many cases - glide through the sales process.
Bottom Line: there is nothing more frustrating than not knowing what you need to bring or what is otherwise expected when purchasing a vehicle. And while there are some blog posts here and there that offer “what to bring” from other customers perspectives, that is not always what is also needed for each customer that happens to stumble across the blog when searching "what is needed to purchase a vehicle." Given that some customers, as we know, might require various other documents. So if your dealer were to step up and offer the customer things that can offer them a better experience, it could also have a positive impact. An experience that can influence their decision to purchase from you.
Do you offer a video to explain to the customer how the car buying process works? If so, have you seen any positive impact? If not, what is holding you back from creating a video for your website?
6 Comments
Kelley Buick Gmc
If you also explain the way that you price your calls it will help
DrivingSales
With all of the opportunities out there around digital retailing, we're making it easier to research a vehicle and start the buying process. You are doing yourself a disservice if you don't brag about it.
Beltway Companies
@Mark, that is a huge disservice to dealers who are still playing the game of "lets hide how we got to this number" with adding Military, Student, and/or other discounts that do not otherwise apply. But let's be honest, the OEM's are *just as guilty* when it comes to pricing as their commercials often show a *total* discount that does not apply for everyone.
Automotive Title Connections
Excellent topic Derrick and some good references/examples. Back tracking is very unproductive and can cause a lot of problems. Some sites do have the loan applications up with required documents. But then there's the follow ups calls that follow shortly after, wanting to know the status. But I guess that's another topic.
Beltway Companies
Top Reasons Your New Ideas Are Not Being Executed on the Dealer Level
Year after year we attend conferences coming back with great ideas. Ideas - that if they were implemented - could have a significant impact on your dealerships bottom line. However, more often than not, those new innovative ideas do not come to fruition. Whether that is the GM or Owner not offering their staff the ideas; or not providing your team the ability to execute the ideas. Either way, for the new ideas to come to fruition some things have to be considered:
Bring the Business Development Manager or Your General Sales Manager
For those who have BDC’s - you most likely have a BDC Manager; someone that is usually responsible for the websites, marketing, CRM and vendor relationships. I know first hand how valuable these conferences are. However, it took sometime before the dealer was willing to invest the time and money in allowing me to attend the conferences or workshops. Where previously, the owner would come back offering new ideas and or suggestions. The problem, though, was that I did not otherwise have access to these vendors in a meaningful or significant way. Not to mention, by the time I was given the ideas and suggestions trying to round up the decision makers was not an easy task, and no one wanted to champion the efforts. Noting that for there to be a significant shift to occur in the way we approach digital marketing or internal processes, both your leaders and influencers have to be onboard.
That said, the ideas where there but never executed. Until finally, I was able to attend the conferences interacting directly with the vendors and owner. It was like an entirely new world was unleashed; the idea that I was not the only one struggling with the same issues. As a result of attending with the owner, we were able to create action plans - having already committed to making the decision when we returned. Having that foundation - groundwork - built was invaluable. Not to mention, it is much easier to make decisions and changes when you are out of the day to day operations; allowing you to focus on a smart growth plan.
Do Not Tackle Everything at Once. Pick One thing to Make the Change On.
It is easy to sit in a room and make several decisions, but we have to look beyond the change, itself understanding that it will be a cultural change, it affects the way KPI’s are measured, and most importantly, it takes a ‘champion’ to see that these changes are executed. That said, instead of tackling everything at once choose one thing that you know you can improve on. Looking back, one of the things we knew that needed to be tackled was online reviews. We were not consistent in the reviews we got; there could be one month we got five or six, and other months that we did not get any at all. Knowing how much your online reputation plays in the prospective customer making their decisions we knew that had to change.
At one of the conferences we attended, we were able not just to conceptualize the change, but more importantly - we actualized the change. The following Monday we got back, we got with the managers first; explaining the new process on online reviews. To which they got with their staff. Three months later, we had an additional 125 positive reviews, and when I left, we had over 1,600 positive reviews and won Dealer of the year for the last five years running. This is not to say it will work for everyone. What it is saying, however, is take the time to invest in your dealers champion - whether that is your BDC Manager or one of your sales managers. In doing so, not only will it boost their morale, but it can and will have a positive impact on your dealership. Looking back to my last career, it was the conferences that pushed me to think differently and actualize results.
How do you approach change? Do you invest in your dealers champion?
4 Comments
Roadster
So true Derrik! Buy-in is an absolute must. We always suggest that all stakeholders have a seat at the table to evaluate new solutions and be part of the decision making process. If you aren't at the table, it is difficult to champion implementation.
Beltway Companies
Thanks, Michelle! I thoroughly enjoyed your session at the Presidents Club event! I especially liked that your presentation wasn't all about the product, but rather enhancing the way your dealership promotes their brand! AWESOME stuff! One of the struggles I used to face (and I can only imagine it from a vendors perspective) is that when you do finally get all of the decision makers into the room, not only are you having to balance all of the personalities but more often than not - while the ideas are there - the execution of the ideas "buy in" is one of the most difficult aspects, which hones in on your "champion" note. How to navigate all of the noise, and make it happen!
3E Business Consulting
Derrick... Great Article! You hit the Three High Notes of why Change is not Implemented or does not Stick: (1) Lack of a Senior Manager Champion; (2) Business Cultural Resistance; and (3) No Metrics for Accountability.
Beltway Companies
Top Reasons to Have A Soft Pull Credit Option On Your Website
Long gone are the days where we make it difficult for the customer to obtain their credit information with regards to auto loans. Yet, the last thing many dealers want to do is provide their customers with their credit score and potential buying power. The idea that it is best to have the customer come in having already completed a credit application; offering that their approval is “pending” and they need to speak with the finance manager. Please do note, though, that this is not to say and or offer that it is not a good idea for the customer to complete a credit application, either. However, more often than not if the customer tells the sales consultant or BDC Agent (for those with BDC’s) that they have excellent credit and when they do complete the credit application - prior to arriving at the dealership - it often winds up being a different story which could wind up messing up the deal.
Here are some of the top reasons to offer your customers a soft credit pull on your website!
Customers Have More Access Today to their Credit Scores Through Various Tools
Credit Karma is one of the largest tools out there today where the customer can track their finances and credit score (and this is not promoting them, either). That said, in many cases, the customers are getting pre-approved before they start their online buying journey. With Credit Karma, it even offers the customer a list of potential lenders and their respective loan amounts. That said, it does not hurt to have the soft credit pull option on your site; allowing the customer to look at the inventory that fits in their prospective purchasing power. Rather than the customer taking the time to look at the inventory that they otherwise might not be able to purchase. The other added benefit of providing the customer with this information is that s/he might feel more comfortable completing the soft credit pull themselves; offering more accurate information. The concerns, though, with providing the customer this information is worth noting. The idea that more variables need to be considered when the customer is seeking approval. One of them is the customer's trade-in, which can and will affect their payment. However, it still does not hurt to have this option available for the customer.
What the Soft Credit Pull is Not Replacing. The Customer Still Needs to Come Into the Dealership.
Of course, the customer still needs to come into the dealership, no? More than 88% (study by Roadster) of the customers still want to test drive the vehicle before purchasing it. However, perhaps the customer would be more inclined to make the purchase sooner rather than later because they have a better understanding of what their buying power is - not to mention, by having an understanding of what s/he can purchase it can save a lot of time at the dealership; time that is very important to the customer. It is a known fact that the customer mostly becomes disenchanted during the time in which they have to wait for the finance manager to close their deal. But by having as much information available as possible, it affords the finance manager a better chance in upselling service contracts and warranties.
Bottom Line: Dealers who make the buying process the easiest for the customer will have a better chance of closing prospective the deal. We also know that “transparency” is a buzz word that is still widely discussed on the dealer level. With that said, this is both a meaningful and relevant way to be transparent to the customer.
Do you offer a soft credit pull on your website? If so, have you seen a positive impact? For those that do not offer a soft credit pull - what is holding you back?
2 Comments
Beltway Companies
@Mark, for those who are offering this on their sites, I would like to see what increase - if any - they have seen in credit apps. As we know, credit apps are usually strong leads and tend to have a higher closing rate.
Beltway Companies
Top Reasons to Rethink the Way You Use Your CRM Reporting
There is such a thing as analysis paralysis. The idea that we become numb when reviewing the various reports our CRM’s have to offer, and when we do review the reports - they do not always tell us everything we need to know. Here are some of the top things to consider when reviewing CRM reports, and how to use them when managing your teams effectively!
Not All Reports Are Created Equal. How to Choose Reports for Your Dealership.
More often than not, CRM’s have preset reporting which may or may not provide you what you are looking for. For example, let's say you want to review the total number of quotes out for the month, but you also want to see if the customer also came into the showroom and or had an appointment; this is often not something that can be reviewed in one report — making it that much more challenging to review the data. The other issue with a lot of CRM reports is that it does not enable you to drill down on the data provided in the report, which means that you have to do a lot of copying and pasting to review the data.
How Valuable Are Report Subscriptions?
Each morning you get the same report emailed to you, maybe it is 8 AM? The issue with using reports in this manner is that in the morning - by the time you have reviewed the report - the data could have already been updated. So by bringing the managers into the room and banging them up on the reports might not be the best idea, and you still have to review the items on the CRM.
Instead of this approach, it is perhaps best to review the key metrics that you are tracking, for example, instead of running a quote report subscription. Take the time on Mondays (or whatever day you have your meeting), and print out the current quote statistics. This way it gives your managers the time to go in and update the CRM from the weekend. As there might be missing quotes, etc.
What Should You Report On?
This is a question in which you will get a different answer from every dealership. Everything to text reports, call reports, email reports, campaign reports, quote reports, etc. All of which can be helpful; however, to make the most out of the meetings it is also just as important to not get to detailed into the day-to-day, but instead, look at the bigger picture. That is first reviewing how many sales you have for the month to date vs. the quotes that are still pending. In doing so, you have a better sense of what your current sales rate is vs. looking at calls, emails, and texts.
The other reports such as email, call, text and campaign reports are best suited for your sales managers to review as they are managing their respective teams. Besides, merely looking at a call report does not and will not indicate the sole reason your sales are not where they need to be. There are far more indicators to review. One example is your marketing efforts. The idea that if your GM has cut the marketing budget because s/he wants to save money can have a negative impact on your sales numbers. You cannot hold your sales managers accountable for slower sales if you are not marketing to prospective customers, but that is another topic to discuss.
When reviewing the marketing reports, however - it is important to note how many phone calls you have received for the month. In doing so, you can see what the potential opportunties are; however when reviewing the inbound phone call reports it is important to take into consideration that the numbers might not be accurate. For example, in my last auto group, if the customer called in multiple times - it counted as a new call each time according to the GM - which meant that the closing rate was much lower than what it actually should have been. This also means that more time was wasted reviewing the call logs than trying to increase sales.
Bottom Line: reviewing reports is essential, but not all reports are created equal. Rather, it is more important to look at the bigger picture; that is everything from how many quotes are out vs. sold, phone calls, and appointments set. By spending time on the total sales, it enables your management team to focus on what is important - having reviewed all facets with regards to the sale - versus several reports that do not offer the full picture.
How do you handle reporting for your store? Do you have weekly meetings on a few reports or do you focus on the bigger picture?
Beltway Companies
Top Ways to Manage Inventory Photos. Stop Wasting Time.
Every day your vehicle goes without a photo online, you could be losing revenue. Getting the photos online, however, is easier said than done. There are several inventory management tools on the market; though, many dealers still do it the old way. That is taking the photos on a camera (or cell phone), loading them to the computer, to then loading them onto the unit. This is a very lengthy and time-consuming process! To avoid the delay, here are some of the top things to consider when loading photos online!
Stop Wasting Time With Manually Loading Photos Online. Time is Money. There is An App For That.
Long gone are the days of taking the photos on a camera to then have to load them onto the computer; to then finally loading it up to the vehicle. One of the most significant disadvantages of doing it this way is that it can be easy to mix up the photos. Wherein, you are not saving the photo on the camera as the stock number. This means that when you are going to load them onto the website, you have to click through each vehicle to then figure out which stock number they belong too. This can easily take five extra minutes. If you have twelve or so vehicles to photo that could be as much as an hour wasted! Instead, many of today's inventory management tools have a photo app. One that enables you to load the stock list. In which case, whoever is taking the photos can click into the app, select the stock number, and load the photos. This can save a lot of time; time that can be used to do other tasks. Such as moving vehicles, or better yet merchandising the inventory!
Have a Process. Consistency is Key for Success.
Have you ever browsed a dealers site and the vehicles all have different sorts of photos or various orders? Best practice would be to have a set process; one where your inventory manager is taking consistent photos. That is ensuring that they photo each angle of the vehicle; and for vehicles with specific features, make sure to capture those add ons, such as Navigation, Back-Up Camera, Sunroof, Spoiler, Rims, etc. Anything that makes the unit stand out. In doing so, it can make it much easier for the customer to see if the vehicle has the features they are hoping for!
Bottom Line: anything your dealer can do to save time, do it! That hour or so a day is five hours a week, which is just three hours shy of an entire day lost to wasted time - time that can be used to merchandise inventory, or moving vehicles!
How do you handle your inventory photos? Do you still have your inventory manager taking photos and loading them to a computer?
2 Comments
DrivingSales
Derrick,
Thanks for the tips. How does this change when video is in the mix? Would it be the same process with extra steps?
CarData, Inc.
Great article! There are a ton of apps that make it easy (SpinCar, HomeNet, vAuto). The act of getting the photos linked up to the correct vehicle(s) is relatively simple. The majority of the work that is involved in getting all the keys etc. is the actual headache in my experience BUT that's what keeps us (CarData, Inc.) in business because Inventory Photography is a lot easier to talk about than to actually execute. I wonder how many dealers still outsource to companies such as ours vs doing it in-house with an "inventory manager" type of position.
Appreciate your article,
John Finucane - CarData, Inc. (www.cardata.us) | @cardataus on IG
Beltway Companies
Top Reasons to Get Your Photos Online ASAP When in Recon
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?
6 Comments
Nelson Automotive Group
This is great if your dealer has a quick turn around time for recon to lot. We take a few preview photos before a vehicle goes through service however we have a slow turn around time and A LOT of wholesale vehicles once they go through service. This creates a lot of interest in vehicles that we cant sell and upset customers. However, if you are quick and not photographing wholesale units then it works well!
AutoMobile Technologies, Inc.
We work with our dealership clients to build both initial photography and internet uploads into their reconditioning workflow. The dealer's understanding of customer response times informs the timing of their uploads. Ashley is right in her caution about customer disappointment, but you don't have to wait for the vehicle to be on the front line to share photos. Having visibility into the recon process allows the recon operation to manage delivery expectations, and helps the dealership reduce lag times between prep and promotion.
Automotive Group
We've started using a GM soluion through a company called EVN. I like the uniformity of all the new vehicle images now.
Beltway Companies
@Ashley, that was an issue we had too, but then we got creative, and started selling "Yard Sale Specials." These units were otherwise 'wholesale,' and we sold them "AS IS" without a state inspection. For the site, we explained in a video that the vehicle could not be test driven off the dealer lot, and that it had to be inspected. As a courtesy, we always gave the customer what needed to be fixed to pass the state inspection. We ended up making a lot more money this way vs. just selling them to a wholesaler.
Beltway Companies
@Ted, exactly - but if you explain it up-front to the customer than it helps. Also, in many cases, the used car sales manager knew up-front whether or not he was going to wholesale the unit, or retail it. There were few instances that he was on the fence whether to wholesale or retail the vehicle.
Beltway Companies
@Chris, curious - how many images do you take on average for pre-owned? We do roughly 10-12; if the unit is a specific unit then we would take more photos of its features.
Beltway Companies
Response Time: Top Reasons for Quality vs. Speed
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?
2 Comments
Birchwood Automotive Group
Well said. Speed is important, but not more important than quality.
Beltway Companies
@Dean, thank you! Exactly, there is nothing worse than sending a poor response that does not answer the customer's questions, or their business to simply get your response times down. That and the customer does not really know how they are going to be contacted, either. So take your time before hitting the "send" button.
2 Comments
Mark Grabowski
Hooks Lincoln of Ft Worth
We believe it is paramount to read all of the elead details before contacting any customer. Take a moment to read the lead details or look foolish. Often times you will find a question to answer directly. Same goes for text chat transcripts. The most difficult leads for us to convert are vague and lack usable information. Do the work. Make the calls. Ask for clarity. Respond quickly. Send an email that is short and to the point without any fluff. Be direct and upbeat. Place a mirror in front of you when you are making calls. People can tell if you are smiling or not by phone so watch your own face while you speak, it makes a huge difference in converting leads to appointments that show. Be professional but avoid trying to become best friends with them. Send a short video of the vehicle to increase the number of people that actually show up for the appointment. Treat people the way you want to be treated. Sell sizzle, not steak. The phone is for selling appointments, not cars. Offer to go offsite to them. Ask for the order. Don't give up until you hear no five times. Most salespeople give up after the first or second no. Remember no simply means I don't know. A hell no is their tail lights leaving.
Derrick Woolfson
Beltway Companies
Great points, Mark! And to your point, that is often - from my experience - why Dealer's have hired BDC's because the sales consultants might (in some cases) give up after only a few tries. The BDC, however, can do the same thing, though, if they are not managed. As for the low-quality leads, that is a huge issue. And why I tend to lean towards investing more money into our dealer website versus too many third-party sites.