I get asked that question a lot, and I mean a lot… How should I handle my Internet leads in my Dealership?

That in itself is such an important question, but most of the time, it is raised, and then forgotten and not acted upon. Why is it such an important question? Well, as you probably already know (if you don't it is time to get with the program…), Internet customers are growing at such a fast pace, that it should by now account for almost half of your prospects if not more. Well, I kind of lied a little, it is not growing at a fast pace, they have been there for years… but still growing…

So what do I do with all those potential customers? How to I setup my dealership to cope with this flood of prospects?

There are 3 basic setup used in most dealership. The setups may vary slightly, but the core remains within those three concepts. Let's discuss about them a little.

Open Floor: This is the most spread concept. It basically consist of having a Manager, or an automated system, distribute leads across the floor, fairly equally amongst the Sales representatives.

From my experience, Open Floor is the worst possible setup you could have, mainly because it requires a special kind of person to have the patience and the skills to answer and follow up on Internet Leads. Most reps will not put in the amount of effort required and will drop the ball quickly. Dealers with this kind of setup will most likely close under 10% (I have seen 2% and 3% in many cases).

Internet Team: This is where you will find the most variations amongst dealers, but it basically consists of have a dedicated team of one or more Internet Manager, where their main priority is to focus on Internet customers.

If you are only looking at closing ratios, the Internet Team is your best option. I have seen dealers closing above 20% on a regular basis. An Internet Manager, a good one, has to be dedicated to the leads. He will have a quick response time, and the quality of the response is usually superior to any other setup. The main issue with this is that it may take you some time to find the right Internet Manager. The gaps in between staff rotation can sometimes be painful. And if you get a ton of leads, your Internet Manager will soon be overwhelmed and then the quality of the follow up will take its toll, and the closing ratio will drop rapidly. Also be careful that your Internet Manager will eventually meet the customer, doing his deliveries, etc. What happens to new leads while he is busy?

Business Development Center (BDC): This is where you have a dedicated team, remote from the floor, who is responsible of following up with customers until an appointment is set.

If you have a heavy volume of leads, or if you want to handle leads from multiple dealers, then you need a BDC. A well oiled BDC can handle a large volume of leads and incoming calls. Their sole purpose is to follow up to the core until an appointment is made, or when you get a lawsuit threat from annoying the hell out of your customers. The closing ratio of a BDC should more likely range between 10% and 15%. Of course their response will probably not be as good as an Internet Manager, mostly because of the lack of product knowledge, but their phone skills and training will definitely make up for it. And did I mention that they can pound the follow up? Staff rotation is also a concern within a BDC, but good tracks and processes should make it easy to get up to speed a new Agent.

Also keep in mind that your BDC can do a lot more than just handling Web Leads. You can involve them in Service calls, appointment booking, call lists, follow up review, loyalty programs. The list goes on and on…

So what is the best setup for my dealer? Well it depends. If you are still wondering after reading this, please feel free to contact me or drop a comment, and we will discuss your situation.

Most dealers are working really hard to attract customers to their dealership. They spend a ton of money on marketing, presenting potential customers with creative ways of making them spend their money at their dealer. If I listen to all the car advertising out there, every single dealer is the best and every single make is the best.

Ok, let's assume you are the best. The customer comes in, you make the deal, you make money, and then… Nothing… Done… How many times did I see a Sales Representative sign a customer and then run like hell the other way to try and grab a new one.

In my humble opinion, signing that customer was the easy part. Why? Because that's what they are trained for: Sell! Now what if I told you that what comes next will be critical for the future of your dealership.

This is a series of events and activities EVERY Sales Representative should perform after a deal is signed. I could go on and on with the list, but this is the bare minimum:

Delivery: Delivering a vehicle without the Sales Representative showing himself is a total lack of respect from the Rep to the customer. He just put in your pocket a nice commission. The least you could do his attend or even perform the delivery yourself, showing the customer your full appreciation of his business. Also take that opportunity to share Facebook pictures, reviews, etc. Not only Facebook, but DealerRater, Google+. Whatever you or your dealership feel more inclined to.

Post Sales Call (CSI Call): Two to three days after the delivery, you should call the customer to see how he is doing with his new ride. Is he still happy? This is your one chance to catch any mishap before the OEM survey. You are setting the pace for things to come. During that CSI call, you should cover the following three points:

1. Make sure he is happy with his ride. If not, do WHATEVER IT TAKES to fix it.
2. Inform about the OEM survey he will receive and how IMPORTANT it is for YOU.
3. Ask for referrals. Why is it so hard to ask for referrals??? Mr. Customer, it was a pleasure dealing with you these last few days. If you have any relatives or friends interested in a new vehicle, it would be an honor to serve them as well. You see, I just said it. Wasn't that bad. With time, you can refine your blurb and ask for names and phone numbers, even throw in a little bone for referrals.

Birthday Calls (Christmas, etc.): Please, CALL your customers on their birthdays. Send them a Christmas card, write them an email (a personal email, not a template). Why? Because they are your bread and butter. And I like it when someone calls me to wish me Happy Birthday. (Mine is April 10 btw). And please, do not try to sell your customer anything on their Birthday. This is just a courtesy call, to show them you really care.

Anniversary Call: The difference between a birthday call and an Anniversary call is that the last one is for the vehicle and not the customer. Mr. Customer, it's been a year since you purchased your… Still happy with your ride? Talk about the car, feed the excitement again. If you notice an issue, do whatever is in your power to fix it and make the customer happy. Ask for referrals. Reiterate the referral program you have for him. Do this every year for the term of his purchase.

I am going to let you in a little secret: What happens at year 3, for a 48 to 72 month financed vehicle? It is most likely going to be in the best equity position. If that is the case, do your homework first, call the customer on his third anniversary: Mr. Customer, it has been three years since you purchase your vehicle. Listen, your vehicle is in an equity position. That means we can give you top dollars for your trade on a new vehicle. Not only that, but I can sit you down a brand new vehicle for similar payments. Would you be interested? Now you are making 2 persons really happy: The customer and yourself.

My point in all of this is: Following up on your customer is an ongoing endeavour. You need to start from the very first time they get in contact with you, until death do you apart. If you stay connected with your customer, by phone or by Facebook, or whatever mean, you are setting up yourself for long term success. There is no better feeling than selling your customers a second, a third, a fourth vehicle. This means you have done your job. You have served your customers in his best interests as well as yours. The minute you get what I am trying to say here, that is when you can really make a nice career in the Automotive industry.

A sales floor with a process, no matter how good (or bad) the process is, will experience more success than a floor without one.

This is no secret and I am not telling you something you don't already know, but I have roamed hundreds of dealerships and I am still amazed at how many dealerships use a free for all approach, relying on people, rather than relying on processes.

Yes, but I have had a lot of success with some of the people I have, some would say. I agree, and good Sales People and Managers are hard to find. But relying only on people makes you dependable on them. Every time you lose one of them, for whatever reasons, the world stops turning until you find a suitable replacement, which may take months, if not years. Trust me, I know what I am talking about. A few years ago, I was given the mandate to start an Internet Team. I tried many people in that team, and finally, after two and a half years, I found THE MAN. He broke all kind of records and we had it good for a while. Then, after a year or so, things started to change and that person left. Since then, this dealer never found THAT GUY again.

I did not have to look very far to understand why I failed. It was clear that I was relying way too much on the person. If I had developed a process, it would have been much easier to replace him. Maybe not as good as that guy will ever be, but the slopes would not have been as bad.

Now back to process… Just be careful about that term, it can be used at large and misunderstood most of the time. I believe processes need to be specific and should target a single series of tasks. It is more likely that you will require a process for multiple events on your floor than simply just one process for the entire floor, or a main process with multiple sub-processes… You get the picture:

Process: Walk-in customers

• Welcoming the customer and transferring over to a Sales Representative
• Qualifying a customer
• Demoing a vehicle
• Negotiating price/payment
• Walking out

And there could be multiple side processes as well:

• Delivery
• Internet Lead Management
• Following up on customers, pre and post sale.
• Role of Managers towards Sales Representatives

I mean the list can go on and on and on. The point is that when you have a defined process (or multiple processes), you no longer have to rely on people. It is the people that will learn and apply the process. Of course not everyone will be able to perform to your expectations, but your chances of success are multiplied.