Internet Auto Sales…What are we truly trying to accomplish? Part I
I ask myself this often: What are we really trying to do on the internet? Let’s start by looking at an extreme. Say a Dealership like that one in Northern, Idaho. Here’s a dealership that is in a mountain town (2400 pop.) they advertise in those magazines you find in the pouch behind the seat in front of you on the airplane when you fly anywhere. They hardly have drive-by or walk in business. I don’t know what their numbers really are, but I would guess they have 35 or more people dedicated to an internet way of doing business. They are sixty miles from the next city with a dealership of any size. They sell literally hundreds and hundreds of cars on the internet every month…hundreds. I don’t know for sure, perhaps somebody from that North Idaho store will comment.
At any rate, these guys are doing something nobody else can. To try to compare any other dealership to this one would be folly. They are a one of a kind deal. What is it almost every other store is trying to do? I tell you. Here’s a list:
- Develop an internet sales scheme.
- Train salespeople how to use the CRM.
- Teach salespeople how to set appointments.
- How do you structure and run your day out of the CRM?
- How do we keep the web pages up to date and looking good?
- How to keep our online inventory current and up to date.
- How do we get the salespersons to do what’s expected?
- Do we use social media? How do we use it effectively?
- How can we get our sales staff to persistently follow the internet leads?
This may sound simple and silly, but most stores in the country are at the start of the internet thing, not at the top. The world of internet auto sales is moving and changing so fast that most stores still aren’t sure what they want to do, or how to do it. I’ve seen it first hand and I can tell you this: 95% of all dealerships in the country have no idea what they’re doing, or how to do it. These guys are buying “Equity Finder” programs and hot lead generators for thousands of dollars, when they really should be buying training on how to make phone calls, send emails, schedule appointments, and set tasks in their CRM.
You gotta’ walk before you can run, and that 95% is running a three legged race to the next newfangled gadget to relieve lagging internet sales.
The overwhelming majority of dealerships will NEVER SELL cars on the internet, nor should they try. The internet is for selling yourself and setting the appointment. The time for selling the car is when the customer is in front of you at the dealership. Whenever you try to SELL the car on the internet, you expose yourself to the possibility of the customer building the “foundation for objection.”
And another thing…Who has the budget for all this stuff being advertised just to the right and left of my words here?
So….What is my point? What is the solution? Where do we go? The answer is this: Start at the beginning! Take a long look at what is happening right now in your “internet department”
- Do you have a CRM?
- Do you have leads coming in?
- Do they all come to the same place?
- Are they being answered in a timely fashion?
- Does every lead get called?
- Does every lead get an email?
- Are comments made in the CRM?
- Is the next task scheduled in the CRM?
- Is every lead evaluated?
- Do the people using your CRM know how to use it and plan their day with it?
- Are appointments being set through this process?
- Does your sales force have any idea what to do with your internet leads?
If the above raises any questions, you need to think long and hard about where you are headed. If you don’t have a handle on all the above stuff, you certainly don’t need to be buying anything other than leads.
You can’t sell cars on the internet. You can sell appointments.
Coming soon...How your dog can appraise cars, figure payments, and even predict market trends...
Comment
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Comment by Daniel Tegeder on October 7, 2013 at 9:50am
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Keep it up
We are working on are department now and getting better at all these processes.
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Comment by Mr. Natural on October 7, 2013 at 9:27am
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Katie...What franchises did these guys have? Most manufacturers require their dealers to have an up and running internet department. This certainly was not a G.M. dealer. Thanks for your comment.
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Comment by Katie Colihan on October 6, 2013 at 9:13pm -
Mr. Natural - I enjoyed this as I visited a car dealership recently who had very little internet access. In fact I brought up their internet department and they openly said that they used their monye for other things. Though I didn't get a clear response of why or where they spend the money but it wasn't the net department.
That said, the dealership's public numbers always had them hovering over mediocre. I knew that in visiting. I wanted to bring this up, but didn't want to step on toes. At the same time, I said "Have you been #1 in the area?" "No," he responded "But we are happy with where we are."
I often wonder if catering their internet traffic in an effective way would be the way to get them from mediocre to magnificent.
I just may never know...
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Thanks for the comment J.R. It brings the question: What if we stopped all of our advertising all together? Well, a related question anyway..I was just in a competitive store the other day...newly built. What a palace!!! What do you think these guys are thinking?
I am gonna' lay it out plain and simple here: Everyone buys a car...EVERYONE...They almost always start by looking on the internet. While they lurk around the pages, the likelihood of them generating a lead is great. Once the lead is generated, all the internet department or BDC, (or whatever you have) all that's left is for that department to keep themselves between that persons inquiry, and their arrival at the dealership. It's so simple!
It's like a Tsunami...After the earthquake (a lead come in) all you've got to do is stand on the beach. The deals will wash you so far inland you'll need Sniffing Dogs (click here) to get you out of the pile of internet deals. True is J.R.!!!
And there you have it...Keep on truckin'
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Comment by J.R. Batchelor on May 5, 2013 at 3:26pm
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With such a high percentage of our customers going online before they come to our stores the days of building the multi-million dealership and expecting customers to storm through the doors are over.
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Comment by Evan Johannson on May 2, 2013 at 12:30pm
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Seems to me that whether you have a one man Internet/BDC show going, or employ a few dozen people working together to oversee how your internet leads are being handled, it always comes down to these fundamentals you list above. How each customer is engaged (and how often) will always carry more importance than what companies you do business with to get the customer's information. Once you have this process down to a science, increasing customer satisfaction as well as gross profit along the way, you can then find all the numerous ways that money can be spent to grow further your online presence.
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Comment by Chris Younggren on May 2, 2013 at 12:26pm
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Mr. Natural,
Nice commentary. I have noticed most dealers are trying to figure out how to fit the Internet into their dealership process, while some dealers, like the one you mentioned, make the dealership's process "around" the Internet.
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Engagement you say....
What a great thought...You really have been thinking about this haven't you? Thanks Adam...
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Comment by Adam Spory on May 2, 2013 at 9:46am
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Spot on, Mr. Natural! I often compare Internet Sales to the Wild West. Eveyone is blazing new trails but maybe we only need the proven trail of good customer service and engagement. Beware of the man selling magic potion from the back of his wagon along the path to success!
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Thanks Evan...Interesting that we have the same last name...even spelled the same way. Good question-How many of us and our peers truly understand the very basics of operating an Internet Department. I have been hearing a lot about the walk before you run thing, and I fully agree. In our industry, there is a lot of "learning to walk" that has to happen. Guess we'll be working on that. Thanks Evan!
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