Here is an idea I'd like to run by you

[machado]

This is not an advertisement

I have been kicking this idea for a few years now it comes from some of the issues that ISM and Dealers have shared with me since about 1997.

Here is a brief summery of some of the things that seem to leave dealers and some of our ISM brothers and sisters, scratching their heads.

They find themselves, overwhelmed working leads correctly and trying to sell cars at the same time?
Tell me, do you ever wonder why some dealerships sell so many cars on line and others flounder and only dream of making something work.
Some stores claim to have done lots of research and wonder how it is that some people can find the time to keep in contact with their database on an ongoing basis and sell cars at the same time?
People all over the country wish that some of that money that you were throwing into lead aggregation could be re-invested by working full time into developing an E-relationship with some of your unsold prospects with leads that they have already paid for?

YOU ARE NOT ALONE One would only need to read some of the strings to see issues and concerns like this in this same forum.

Here is the basic idea, tell me what you think

There are two ways that we have sketched out this model and Id like your input.
(What Im looking for is for you to tell me if were on to something or if you prefer shoot wholes in this idea)

Many D.E. readers have a good idea of what the best practices are when it comes to selling cars on-line. We all know what we have to do to have the best RESULTS, (Right?) Most of us fall in to the trap of being encumbered by the day-to-day operations of running our stores or for that matter selling cars.

Here is my idea does it have any merit???

Would it not be nice if you could OUTSOURCE some of your E-commerce work? Im not talking about the actual sales part Im referring to the email communication with your on-line guest. If you found a company of Real Car Guys who have sold cars on the internet with great success and who knew how to make an appointment and then made it stick.

Here are some of the services that they could offer:

If you wanted them to do it from the tee off they could offer services like Developing Auto Responders for you that they monitor on your behalf 24x7 so that they are asking the appropriate questions to define you buyers real needs and get them links and info to some of the information on-line guest frequently are looking for by email instantly.
Send out personalized responses for you that follow up on the original request.
Provide a service for live chat right off your website so you dont have to worry about it anymore.
Encourage the guest to come in and ask for the Internet Department as the deal draws to a close.
Take all the time necessary to keep the customer informed and build a trust with your store and eventually book your appointment and notify you by phone, email or IM so that you can confirm the appointment yourself.
Follow up on your behalf electronically to confirm and remind your guest of the appointment at the appropriate time via email and to also send you a reminder so that you can re-confirm also.
Take all of your old leads and organize them by product so that they can be re-contacted if they have not yet purchased so that you can let them know when new incentive are announced.
On a few hours notice build Splash Web Sites so that you can bulk email out links to that weeks special or new ads that you might want to let your data base in on or a detailed list of incentive changes.
Produce and email news letters to your prospect and sold customer database.
Do follow up email to e-guest to advertise other services like Finance Solicitations, Parts, and Service.
Help you make sure that you are getting the full use of some of the products that you are paying for now like My Car Pages
Remove people from the email list when they asked to be removed.
Conduct SSI and CSI surveys on your behalf electronically.
Help you to plan, organize, and execute email marketing campaigns.
Follow up on lost orders to see where you or the might have missed the mark.
Send out ownership follow up email like the 3 day letter, 10 day Letter, 30 day.. Birthday email on the right day and quarterly follow ups.
Lease renewal remainders and follow up along with service specials.

There are two ways that you could use this service:
Send this group only your old leads or non-responsive leads and pay a flat fee for every lead that converts to a sale like a bird dog.
Or Pay a monthly subscription fee and a much lower flat fee for all the Internet leads that convert and referrals that are produced by this process

WHAT DO YOU THINK? COULD A SERVICE LIKE THIS BE BENIFICIAL?
Especially, because you only pay for the service if it is working and producing results.


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Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[This message has been edited by machado (edited 11-08-2001).]

[Results]

Greg,
I have some clients that have an impossible time of keeping someone in the Internet department that this could work for. I have a few questions though.
We work our leads to death and if we are not currently working them it is because we have decided that the lead is just not worth it..
ie. Credit Challenged, ACV, or bought else where. What would be the benifit of having you revive those leads into appointments?
The leads that we do get have been paid for already in one form or another, either from our web site costs or an aggregator so why would we want to turn those leads over to your group to work unless we didn't have an Internet Department?
How many other leads are you going to send us besides the ones we are already paying for?
You can email me directly or use the forum to answer.

------------------
Results
Mike Stinson
results@rintuit.com
www.rintuit.com

[Kevin Kavanagh]

Greg,

I've always struggled with the concept of outsourcing what should be a dealerships responsibility. I dont disagree that the services you are talking about are beneficial I just have a problem with giving control of my prospect or customer to a third party.

Why is it that dealerships believe it is OK to have salespeople that only sell and then close what in reality is 16% - 17% of the people they talk to.

This industry spends tons of money farming out what is the sales persons job! Again I dont disagree with what you are advocating I just believe if a dealer REALLY wants to be successful in today changing environment they need to invest in training for their people so the results you are advocating can be realized in-house.

Like many people on this thread we all heard I cant get my people to do. this is just totally unacceptable! If a dealership has a well defined plan and process to accommodate all prospects Internet, phone and floor there is no reason why this cant be done in house.

Solutions to problems are built on people, process and technology. If a dealership believes that their people arent capable, their processes wont work and dont know how to take advantage of technology then what you are advocating makes sense. If my name was on the sign Id have huge problem accepting that type of performance.


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[machado]

Okay, Mike & Kevin both of you have raised some good points here are my comments.

First; everyone can get better even the World Best Golfer has a coach. In fact, Tiger Woods has several coaches RIGHT?

If youre doing everything perfect that is great and perhaps most of your clients could not do much to improve their numbers but; what if they could squeeze another 5 deals out of each 100 leads would that be worth looking into?

We all know that there is right way to do everything and Im sure there are plenty of stores out there where every single SOP is followed to the letter here are just a few of what Ive seen and you tell me if Im on track or off track

No one in your stores ever lets a customer leave on a test drive that is unaccompanied by a salesperson?
Out there, somewhere there is a store that never losses a key because someone has failed to put them where they are supposed to be??
You may know of a store that has never failed to make the three day, ten day or thirty day call to a customer???
You know for a fact that EVERY guest, weather they get written up or not that they are getting logged and followed up the next day????
Or if you know of a 100% turn store where it really happens and noone leaves until the boss gets to speak to them?????

Lets face it the road to poor performance is paved with great policies that never get executed or followed up on. If the procedures are getting done it is not happening 100% of the time and in most cases I would be so bold as to say it is not happening 70% of the time.

Most of the stores that I have been associated with had a Book of Standard Operating Procedures but, in fact there were vary few people in the store that followed all of them let alone knew them. In most cases stores that are 5 Star or Blue Oval certified simply copied the book report from someone else or they had a consultant come in and help them get their certification. There is a big difference between learning policies and internalizing them.

The same is true with selling cars on the net
In fact truth-be-know the slacking off here is even more prolific, typically because the accountability does not extend all the way to the top in most dealerships.

Here is where I see the greatest chance for improvement: If stores became more E-commerce enabled and if sales managers and GSMs and even GMs were held to higher levels of accountability there could be some significant improvement but this is not likely to happen. The reason, most dealership dont manage processes, they manage crises, running around with a fire extinguisher in each hand. I have spent the last three years of my life helping dealerships improve their own e-commerce efforts and it is always the same story with major improvement in the beginning and then I get the old Thank you for your efforts here is your last check Then three months later the numbers have fallen off primarily because their process have deteriorated from what I had put in place. I'm usually am invited back in and my first question is Let me see you ongoing mailing list for unsold customers There never is one. My guess is that no matter who I check with it will always be the same story this is like making your guys make there 20-30 phone contacts a day or their 3 Saturday appointments it just doesnt happen, and if it does happen it is not near frequently enough.

Im simply suggesting that we consider taking the asset of email addresses and work on developing an E-relationship by staying in contact with these guest several times a month by sending them email on an ongoing basis. The problem develops when we get so involved in trying to sell a car TODAY that this other work just does not offer a quick enough return on our efforts. Except for the most structured and disciplined BDC this just is not happening.

Lets look at my store for instance; I work as an E-commerce salesman in a store that sells only Jeep. My fresh lead count is about 50-60 per month the majority of my leads come from Autobytel.com. I have only been here for 11 weeks next week will be three months.
Of the leads I have farmed in the last 3 months I will personally sell this month 19-21 Delivered cars, 13 orders with $1000.00 Deposits, 4 Split deals, and 4 Deals that I lost because one of a few of my brother salesmen tell me that the guest failed to ask for me. 20 + 13 + 4 + 4 that is 42 units that were sold as a result of working my tiny but growing data base of about 300 people. Okay take the 13 orders out that still leaves 29 deals as a result of working that data base. Only 9 of those deals came out of the fresh 60 leads from this month. But the bulk of the request will stay in my ongoing contact data base. It takes me about three hours a week to contact my data base a minimum of twice a week. I take no UPs and I take no phone-pops 100% of my business is developed strictly form the Internet and e-commerce referrals. It is not that I am especially gifted but I feel that I have fairly strong work ethic and I stick with the program, granted, thanks to my successes I have lots of autonomy to do my own thing. Does your store have someone like me?

If you wanted to develop programs like this it is entirely possibleBut, are you willing to make the sacrifice to get it done and will you stick with the program???

What I am simply suggesting is that if you have not been able to get it done on your own would outsourcing be an option? Especially if you were turning it over to people who know how to get the job done?


------------------
Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[This message has been edited by machado (edited 11-05-2001).]

[S.W.]

Greg,

I have several thoughts here. Its late, and I'm tired, so I hope I will be able to express myself and in somewhat understandable fashion.

First, outsourcing idea has really been around since before I met you back at the NADA conference. I think there must be some pretty big issues for someone to have not already done this before now.

As a former relatively-successful ISM, I know what it takes to sell cars this way. Its tons of work. I believe its hard for dealerships to keep an ISM in large part because it is a huge amount of work. Put that along with that most managements don't buy into it, it pretty much feels like you're banging your head up against a wall.

I think with the past history of being sold leads by the third parties, the consultants and all the people trying to sell dealerships tools (software, wireless email, etc), along with uncertainly of economy right now, I think it would be a huge challenge to get dealers to consider any type of "subscription" process. They may consider the "bird dog" idea but I'm not sure they's be too quick to jump at it.

I'm wondering who you are going to find to do all this lead follow-up. I personally know I'd have to get a pretty handsome birddog to put in the hours needed for results on those leads. Any person who has the tools for success is going to want to be paid for it.

Also, how would you handle something such as handling leads for competing dealerships in the same area. You'd have to find a way to treat them fairly and not play favorites?

I like the idea of the live chat on websites, but who are you going to get man a 24/7 site? Its going to have to be someone with knowledge.

I really do believe that the process that will work best is the dealing with one salesperson all the way through. I know it was the relationship that I built on the phone working those leads that led to many of my sales. Without the proper person in place at the dealership, an almost certain deal could get blown up.

If the show floor salesman put in the time and effort into their customer follow-up and management that a successful ISM has to, they'd surely been selling more cars than they ever dreamed.

Can you build splash websites in a few hours for a dealer that don't look totally canned and just like everyone else's?

The part of your idea I do like (and I've been talking about this for a few years too but just never done anything with it) is the outsourcing of the E-customer relations (specials, newsletters, follow-ups, service,etc.) I think there is definitely a void here and a need for someone who could go into a dealership get their data integrated and start cultivating their customers through E-mail. This is really the area I see the most opportunity in right now.

But the one thing I DO KNOW, is that if anyone can do anything in this area, its you Greg. I have tremendous respect for you.

Good Luck,

S.W.

[puredealer]

This is a great thread!

We've started to respond to some of these issues with dealers, although nothing at the level spoken of here.

Throughout all of the sites we see, there are also issues with not only customer follow up but also with maintaining the website. Although all of our sites are completely self-editable, we find that dealers still won't spend the 10 seconds it takes to make an incentive or coupon on the site. We've now begun offering outsourced services to keep the site updated. This includes calling on the various departments to get their current incentives or specials, and calling the ad agency in some cases to get current ads. We actually put the specials in the site and they are automatically removed by the system on a specified date.

In addition, we also can take pictures of the cars weekly and put those in the site for pre-owned as well since 9/10 dealers are not doing this properly despite all of the benefits.

So as a natural progression we have been looking at other ways of helping dealers sell more cars and have recently been exploring an outsourced call center to set appointments from leads.

I think these are all some great ideas- keep up the good work everyone and let's see how many of the "big guys" steal our good ideas and make them their own :-0

-Michael

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www.puredealer.com

[machado]

Thank you for your comments SW and Michael.

Im not trying to re-invent the wheel. I know that for the most part; dealers are capable, aggressive and intelligent.

The automotive sales reports for October that will be released in tomorrows automotive new(s) and on other mainstream media will be a tribute to the unshakable resolve and the resourcefulness of dealers, managers and salespeople, in particular the guys who pound the pavement and the keyboards daily.

Our industry as a whole as done a remarkable comeback from a long list of economic conditions that would have decimated many other types of retailers.

Its not that I am unusually gifted; the difference is that I am very close to the process. I have sold cars on the Internet and taught lots of other people to do it too, with some fairly impressive results.

The real difference here, is that for me it is not a just a job, its more of a crusade; I for one have never liked the traditional automotive selling/buying process. I never could understand how our industry could continue to perpetuate ideas that dont work and call it training? I have made a lot of money selling cars and running dealerships but what set me apart from so many others is that I have always tried to do it with honesty and integrity. I believe that if you take good care of people and treat them with the respect and dignity that they will continue to buy from you and send you their friends, family and co-workers again and again. My Hypostasis is that I think you can do that on the Internet too except now instead of consuming half your day to contact 20 people by phone you can send them a message via email, but now; instead of 20 people it can be 2,000 people and you will know that you are speaking to them in a dialect that they prefer (e-mail) or that at the very least they are comfortable with by virtue of their initial on-line request.

I am selling cars on the internet now and doing a fairly good job (at least I think so).

I wish I could tell you about some of the one-on-one interviews that I have done on how people feel after they buy from me and share their resent experiences of trying to buy a car on-line and in the show room. I wonder if we (As an industry) are taking enough time to listen to what our customers are saying. And Im not talking about a JD Powers survey or a 20 line questionnaire from the manufacturers. Im talking about sitting down and starting your conversation with; TELL ME, about how your shopping/buying experience has been. I even go so far as to interview people who dont buy from me and often the truth is ugly and painful but it hasnt killed me so I guess it will only make me stronger.

The point Im trying to make is; what I am suggesting is NOT something that only I can doAnyone could do it if they wanted to; the real question is: Will you?

If you take a long hard look in the mirror and say to yourself and say I will work my data base every week from now on and stick to it you will reap wonderful results. But if deep down you know it will fall to the side just like that long list of marginally successful products and programs that are collecting dust in the back of the used car buildingMaybe outsourcing is a solution.


------------------
Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[This message has been edited by machado (edited 11-05-2001).]

[Kevin Kavanagh]

I want to be on the record as not being a nay-sayer to your idea Greg. While I fundamentally disagree with the outsourcing concept results matter more than my feelings. Michaels correct you can make the tool simple and they still wont do the job. Greg SW raises a good question, who are you going to get to do this? As you said honesty, integrity and hard work will bring success, but how can you find the right people, afford to pay them a wage worthy of their effort and make the outsourcing costs realistic? As it is many dealers dont think their Internet efforts are paying off so theyre downsizing to minimize cost.

I know you said this isnt a commercial, but how do we make it viable for the dealer?



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[amonteiro]

I agree with Kevin, Dealers need to know how to sell every customer that contacts them no matter what the source of the contact is, Internet, Phone, walk-in..whatever.

Dealers need to take action to train their staff to handle every customer in the way the customer expects and deserves to be treated, Dealers need to have a "plan" as to how to and when to follow-up with prospects not only in sales but in service and parts as well. Dealers need to take control of their business and quit living in the past, a lot has changed and if an automotive retailer wants to be successful in this era then they need to embrace technology and invest in their people. They do NOT need to outsource their sales process and follow-up work.. that is the job of a sales agent, a properly trained individual with the right tools (CRM software and word tracks) can outsell any outsourced agent any day.

If they are to hire consultants, it should only be to hire a consultant that will provide them with best technology and training that will allow the dealership to have control over their sales and service process and maximize every opportunity that is available to them. Quit lying down and letting the industry control you and control your industry.

[machado]

Wow I never expected the replies to be so diverse

Let me re-state my exact feelings; first of all, it is still, and always as been my position that all dealers/dealerships should attempt to do this on their own, if they can. I have never been in a store where there was not a least one staff member that was more than capable of performing this function. Nothing about following up with your Internet leads is difficult all it takes is a little bit of effort and some creativity. The problem comes into play when all of the other things become a more important priority. (We have all heard the old story about sharpening your ax RIGHT?) I can tell you first hand after 13 years of automotive retail it is easier to get a sales person or sales manager to take an ice water enema than to fulfill their training requirements. Sure it happens; and now the manufactures have finally figured out a way to make them goBy tying it to the certification process for things like 5 Star and Blue Oval to training. Ask any of the old time factory trainers and they will tell you about times that they have been sitting in a hotel room waiting for their class to show up and by lunch it was the trainer, 2 or 3 other training candidates and 225 un-eaten bran muffins. In the selling environment training always seems to take a back seat.

I would love to see more dealerships actively engaging in the practices thought by companies like the one amonteiro works for. It would be great if all stores worked toward improving their process and developed programs to have real long-term relationships with their guest. But it just doesnt happen enough. Even the companies who drop 100 Gs on training will often wind up with lack-luster results and more programs collecting dust in that office I talked about earlier at the back of the used car building.

Im simply throwing this idea as an alternative to doing that really difficult task of changing the culture in a dealership. We have all heard the stories of the truly exceptional stores like Anderson Honda and Sterling McCall Toyota and many other too numerous to mention. But for every hero store you bring up I can site one that has fallen flat on their face after having gone through the same type of program.

I guess the idea stems from the 25 or 30 Internet Sales training classes Ive been sitting in since 1995 Im not sure what the difference is, and why the light came on for me and for few others but the rest of the room came, listened and still left clueless.

From an execution stand point here is how my idea might be implemented:

Find a few people that can type and string a few sentences together. Develop lots of individualized templates for each client (by that I mean each Dealership) that cover almost every conceivable tangent that a customer might go down and as other situations present themselves write new template or amend old ones. Then make sure that they are supervised by car Real Car Guys. It would be sort of like working a desk with a bunch of bright rookies on a busy Saturday or Sunday; load their lips (or their fingertips) and have them deliver the appropriate message to the on-line guest. As the deal nears the time to set an appointment simply pass it back to the dealership or in some cases set and confirm the appointment yourself. I can tell you that I know of at least one company that is moving in this direction that can make the process profitable with only 4 sales per agent per month.

Maybe Im full of unrealistic ideas but I know of at least 6 stores in the country who have done this with great success by having a stay at home mom or dad that handled all of the electronic communication for the store and they had tremendous success with it. Why not kick it up a notch and move it to a slightly larger scale? Like I said this is only an alternative to doing it yourselfHow many e-commerce directors has your store run through in the last 5 years?

[This message has been edited by machado (edited 11-05-2001).]