Internet Departments

[Jim]

This is a question that has been asked many times over the past 2 years?

What is the best way to deal with Internet sales? Does it have to be its own department, or can in be a branch of another department?

One thing for sure is that the walk in customer and the Internet customer are two different breeds, and old school techniqes for selling don't apply to the email customer.

Even my exsisting salemen who are Internet literate resort to these techniques with mixed results.

I guess my question is:
Do I train a computer person how to sell a car to E-buyers or train a salesman how to use computers to sell cars over the Internet.

Thanks for any insight
Jim

[tbrowder]

In my humble opinion, you must have a department dedicated to internet sales only. The biggest problem I've had is the front desk managers buying into the program. I guess they see it as a control issue.

You also have to have a dedicated manager and a staff that does only internet sales. The internet customer has to be handled in a totally different manner than an ordinary customer. I can't stress this enough!

There are dealer's that I talk to around the country that sell 50 to 150 units per month through their internet depts., so it's worth the effort. But you have to have support from the top down.

My dept. is only 5 months old and I've learned everything by the seat of my pant's. I average 20-25 unit's per month and my gross's are good (better than the front guy's). You have to look at this as incremental sales because you'll capture alot of business from out of your area.

I hope this helps. Email me if you would like to pick my feeble brain.

[phil062971]

There is no magic wand to this question. The best results have come when the dealer has a dedicated individual or individuals assigned to the Internet. How many you assign will really depend on the number of leads per month you receive, not how many cars you sold from that department last month. As for the personel you staff your department with, well let's just say that it is easier to teach your best salesperson how to use a computer that it would be to teach a computer guy years of sales knowledge and experience.

Most people say that the Internet customer is a different breed and they are, but they are still potential customers and some you may not have had the chance with in past years. You should really look at the numbers of both your floor and you Internet about the same and consider that email just like a floor up. When you gear up for the season for the floor, you should strongly consider doing the same for your Internet Dept. A car sale still follows the same trends as the market typically does. Alhough you may have a little heavier over the net when your floor is slow and the exact opposite the next day.

To sum everything up a car sale will always be a car sale, you just need to adapt to a different personality type. You also need to keep in mind that you have just as much chance selling a car to that Internet Customer that you do that floor up.

[WebManager]

Does anyone give leads to other sales people to handle? How has that been working? What sized internet team should the average dealership have?

[mbowers]

Dealers we speak with are pretty unanimous in having a separate Internet dept. Even if some customers (repeat buyers, for example, contact the store by e-mail instead of phone)are not really Interney customers, 80%+ will be and need to be handled by a specialist.

As far as department size, one benchmark we have heard is that you need one person for every 60 "quality" online leads received each month.

[BBingham]

A car sale is still a car sale. All of the components of car sales still happen (meet/greet, fact find, demo, etc.), they just happen in differing orders and through a different medium.

You will not successfully four square these prospects.

If the size of your dealership warrants it, separate your internet sales activity from the floor. This must be supported from the top and recognized as a department.

I have come across dealerships that have everyone on board with this concept, except one manager (used, desk, new, finance - whatever). It doesn't work. I don't understand the GM or GSM that allows it to happen.

The result is low productivity, animosity, and turn over.

There is a way to make it work. Do it right from the start.

Good Luck


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Bruce Bingham
bbingham@thirdcoastmedia.com

[swindler]

The most effective way to handle Internet customers is through a separate Internet sales department. But first, you must select a salesperson from within that has great communication skills both in person and over the phone. He/She must also have good grammar and spelling, as well as a fair background with computers..., primarily the use of the Internet and email. Database management is a big plus.

The salesperson selected needs to have an open mind about the Internet. They need to know that what they have been empowered with is their very own cyber-dealership that is open 24/7 by 365 days a year. The responsibility they have been given is that of a manager, a salesperson, an entrepreneur, a consultant, a mediator and with all these they need to remain human, understanding, compassionate and empathetic.

They need to build what I refer to as e-rapport with each contact. They need to become the customer. In other words, if the customer asks short concise questions, respond back with short concise answers. If they write paragraphs, write paragraphs back. Mirror them. They need to have fun with their customers. Heck, they may never meet them until they come in to pick up their vehicle. It would be great to know as much as possible about them without being intrusive.

Now the kicker! Permission marketing. It's here and it's now! If you aren't doing it, you may not survive as the Internet auto retailing field continues to grow. The Internet salesperson has to become savvy in this method of selling that has been around for ages, but never quite captured by all. Read Seth Godin's book, "Permission Marketing".

I also recommend David Siegel's "Futurize Your Enterprise".

Have fun, good selling, and remember, let the customer on the other end of your email know that you are a real person.

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Dean Swindler
Internet Manager
The Rowe Dealerships

[Andy]

Dean,
Could you give me an idea of what you mean by "permission marketing"? I obviously am missing something. Thanks.

Andy Patton
Internet Manager www.haltermans.com

[swindler]

Welcome Andy!

Permission marketing is quite simply a rewards program. It's taking selling to a new level where the customer is asked to do something for you and in return they reap the benefits. For instance, we receive quite a few leads by advertising through CarCast in our local newspapers web sites. When we receive an Internet request through one of these two portals we respond back to the customer within minutes asking them to visit our web site. If they are in the market to buy a vehicle right away, in the body of our reply, we ask them to take a few minutes and fill out a credit application, and while they are there take advantage of our on-line discount coupons. We even promote that they go ahead and print out a few extras for family and friends.

We are currently running a fantasy football game within our web site, which when a customer registers on our site they have a chance to win gift certificates and two tickets to a New England Patriots Monday Night Football game on December 4th.

Other forms of permission marketing is to ask the visitors to your web site to sign into a guestbook. In return you will keep them up-to-date on changing rebates and incentives on the vehicles that they are interested in. It's like the movie "Field of Dreams"..., if you build it they will come. But, keep it fresh and ever changing.

It works!



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Dean Swindler
Internet Manager
The Rowe Dealerships

www.roweauburn.com

[EddieFitz]

Hello all. I just wanted to see what everyone's closing ratio REALLY is. I am in a Dodge only store and avg. roughly 7-18% monthly with about 100-135 leads. Thanks and happy selling...

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Eddie Fitzgerald
Internet Manager
Croton Dodge
http://www.crotondodge.com