Comment

Comment by Rich Mertz of DealerTraction on October 22, 2010 at 2:55pm

I have no problem weighing in on the subject, particularly when it comes to Internet Sales Departments. I have managed dealerships for 17 years with many different manufacturers in 3 different markets: San Diego, Orange County and Los Angeles. And for the most part I would say the answer is "it depends". :) I will try to explain my take here:

1.) Dealer 20 groups are typically of the same brand, and over wide markets. So, how many leads should be determined by manufacturer type, PMA, staff, dealership goals, and regional manufacturer's sales volume targets. There should be ratioed expectations, of course. However, the dealers that are really thriving right now are getting back to Sales 101 basics, and they are focusing more on the customer. In addition, there is a great talent pool out there so they are hiring slower and firing faster.

2.) I would want to discuss the origins of the dealership customers themselves. As internet salespeople, they are too often (if not always) called "leads" intsead of "customers". If your dealership is just buying leads and expecting unreasonable results, you need to be sure you have a full plate of your own local market by optimizing your web presense with your home site. How well are you indexing in the major search engine sites like Google, Yahoo and MSN?

3.) I would certainly discuss the quality of these leads, where they are coming from, and how much money those leads are costing. I would hope to discuss all of the lead providers, the quality of their leads overall, and talk to dealers that hold these people accountable for what they are selling you. After all, they are also selling those same leads to your competitors.

4.) I would discuss our home websites as well, particularly the quality of the sites. There should be discussion with other dealers about how they are able to make their dealership very user-freindly and accessible to the potential buyer as well as current owners. How do they optimize those sites? After all, your website is your new "front door".

5.) In terms of ratio expectations, an internet salesperson that can close 15% is great, but what about how they got there. These high-closing salespeople tend to make quick contact with their prospects, and are not afraid to call people.

6.) Good internet salespeople make contact early, but also listen very well to the needs of the potential buyer, which is why they typically average around 35% appointments, 30% of which are confirmed (by a manager or internet director). Of these 30/100 appointments, they should close 15 deals. Your best internet salesperson should be invited to these meetings to discuss their processes.

7.) There also needs to be more emphasis on the perception of the "internet customer". ALL customers now are "internet customers" and some discussion is certainly due to the fact that they are not all there to grind you out on a price. Too much money is left on the table with internet prospects because that money is taken off the table with incorrect perceptions. Not enough attention to selling the value of the dealership, the vehicle and the salesperson.

The internet departments accross the United States are all unique, but share a common goal. To sell more cars! The influence and effect on a dealership of internet departments deserve a 20 Group for sure. However, these Groups need to be more than just number factories and big lunches. Internet 20 Groups need to discuss the "hows" and the "whys" a bit more in detail, have in-depth best practice discussions and hold each other accountable like other 20 Groups.

I would want to have my dealership and the dealerships in my group have some targets to reach between 20 meetings, and hold myself and other members accountable for those targets. If there is some focus on these things, I think the numbers will take care of themselves.

Thanks and I am always available for discussion at rich@dealertraction.com

Rich Mertz
San Diego, CA