Okay, we've figured out where the deals are; see "Follow Up, Follow Up, Follow Up" my previous blog entry. Here is the scouting reports on various Internet Sales models.

You, Me, and the BDC

Hire a bunch of students, telemarketers, and part-timers and let them call all your leads. Compensation is based on Shows and Shows Sold, etc. By the way BDC stands for Business Development Center. Give out weekend spiffs and realistically they can make another couple of hundred in bonuses per week. A realistic hourly is ten bucks. 

Pros:

This works up to a point. It's less expensive and BDC employees are technically part-time so you don't have to give them benefits. 

Cons: 

Do you really want the first voice your customers hear coming from a part-time employee with the least training of any of your sales staff? Since they get paid on appointment  shows and an hourly wage they may not have a vested interest in the sale and they won't set up the deal like someone with experience would. And "turnover", did I mention "turnover"?

Grade: 

C-

A-Z and Then Some

You have four Internet Sales Managers and they do it all: call, demo, work the deal, deliver the car, get great CSI. This is a proven model.

Pros:

The customer gets continuity and the longer they are with their ISM the more rapport and thus the more gross. They are experienced ISM's and they won't need a lot of hand holding. Figure four good ISM's will get you close to 75 deals per month and one good Fleet deal gets you to 100.

Cons:

Can you say "Burnout"? What usually happens is management loads these guys up until their knees buckle and they start believing the subtle lies from the Internet Director down the Auto Mall and leaves you. If one of these guys leaves you have a 25% of your sales projections landing in the toilet. The thing that suffers most is your CSI because most salesmen keep their A-game for those customers they are going to sell.

Grade:

 B

Top Gun

Talk to me Goose! This is a bit of a hybrid of A-Z and the BDC models. This has four reasonably experienced ISM's splitting responsibilities and functions while pooling leads. The 4 ISM's break into 2 groups of 2. They act as a team with one doing most of the calls and the other doing the demo, working the deal, and delivering the car. They cover each other on days off and they split every deal. This is still a bit experimental but a couple of Internet Sales Departments are trying it and they are selling cars and their guys even get two days off. Go figure?!

Pros:

You are working strength with strength. One ISM gets customers in and the other does the deal. There is no "down time" because one ISM is available and can take leads continually, Better team work, better synergy, and the leads gets worked more thoroughly and the dealership will miss fewer deals. Could be the answer as the best solution to lead follow up. Not a proven model but one that has the most hope so far. 

Cons:

Hope they get along. Hope your leads can support two people. If a customer doesn't like the guy who they are working with does that mean your appointment setter has to drop everything and finish the deal, which defeats the purpose of the model. Recruiting for these skills will be tough.

Grade: 

A-

Summary:

These are three of the most common Internet Sales models. Not a comprehensive list but each of the above incorporates the basics of 99% of all Internet Sales Departments.

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Comment by Garrett Osborne on April 28, 2012 at 7:52pm

In a perfect world I don't see the why the ISM can't do it all. But given the real world I advocate a very tight integration between BDC and ISM. In fact I think the BDC and ISM should be the same except at the functional level; i.e., have ISM people on the phone functioning as BDC with tight integration with the ISM that does the sales steps with the customer.

Comment by Katie Colihan on April 27, 2012 at 11:48am

I absolutely agree that hiring part timers is a bad idea. I get the whole not having to pay for benefits thing, but when you have people who just consider the job a 'job' and aren't passionate, then no amount of sales or communication training is going to help.

We had a dedicated BDC who went through training, set all of the appointments, and the salesmen handled the demo, sale, etc. We also had the ability to do sub-prime lending so this gave us the ability to take on the role of a "third party" referring the customer to a dealership.

I enjoyed this, thanks for the breakdown! :)

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