Internet Leads and Close Rates Skyrocket!

November 2003 Effective Online Automotive Sales   VOLUME 2 ISSUE 11  
HOME
CONTENTS
In Demand: Internet Sales Professionals and Online Buyers
101 Internet Sales Objections

Hiring a High Caliber ISM

Vehicles with the Highest Close Rates
SUBSCRIBE

Subscribe to the Dealix Dealer Newsletter. Enter your e-mail address in the box below and we'll add you to the list:


Add Remove
 


Hiring a High Caliber ISM

Finding the Talent that Drives Internet Sales

As the Internet department gains respectability throughout dealerships as a low cost provider of additional sales and profits, how you approach staffing will make all the difference in the level of success you achieve.  Too often the role of Internet manager is regarded as a lateral move at best when a traditional floor sales person starts handling Internet customers.  Instead, becoming an Internet sales professional should be regarded as a promotion, or step up, for a proven sales person.  Getting serious about putting the right person into this role can mean getting the maximum return on your investment. 

 

Setting Goals for your Internet Department and Internet Sales Manager

 

Conducting a clear assessment of how you want your dealership’s Internet operation to contribute to your bottom line is the first step in building the department.  Before starting the ISM selection process, consider the following:

 

  • What is your dealership’s Internet marketing plan and expected return on investment?  Your plan should identify the following:
    • What target market are you trying to reach?
    • How much of your dealership’s budget can you dedicate to this market?
    • What is an appropriate return on your investment?   
    • What metrics will you use to measure the success of your Internet department and Internet sales professional?
    • How will you best leverage Internet sales leads from your manufacturer, your own site, and from third parties?

 

Having clearly defined goals can save you time in the long run and allow you to provide clear directions to anyone who in the ISM position.  When preparing to interview potential candidates, make sure you’re clear on the answers to the following questions:

 

  • What are your current results?
    • It’s essential to have this information on hand before you start recruiting.  Qualified candidates will want to gauge the level of opportunity at your dealership.  Even if your Internet department is in its infancy, a confident ISM will welcome the opportunity to build a stellar new department.  
    • If you are a franchised dealer, your manufacturer can provide general market information for your area, for instance, local demographics and competing vehicle cross-seller reports. If you already have a relationship with a lead provider, they can provide monthly reports on your dealership’s performance and other information on your sales territory.  Gather detailed information, determine your current status, and be up front with your candidate about the challenges or opportunities ahead. 

 

  • What are your expectations for your Internet department?
    • How many vehicles do you expect to sell?  What kind of gross profit do you want?  By answering these questions you can back into the equation for your return on investment.  Keep in mind you are paying for your website, your lead management tool, Internet sales leads, and commissions for your staff.  The profit you generate from online sales must cover this overhead and provide a margin you are comfortable with.  Just like a newspaper ad has to generate results, you must expect the same from your Internet spend. 
    • Benchmark. Take a look at the top dealerships in the country, read about them, do research, and make inquiries.  Understanding how successful Internet departments are run and the best practices their Internet teams employ can only add value to your own dealership.

 

What Does it Take to Be Top Notch?

 

The best ISMs possess a skill set that, in some ways, matches those of traditional floor sales people and in other ways is a departure from those skills.  Look for the following when selecting your ISM:

 

  • The ability to work with customers from email to delivery

o        Too often dealerships relegate the Internet manager role to mediocre salespeople who are good employees but have not had much sales success on the floor.  If they can’t sell cars on the floor they most likely won’t fare any better online.  The best results I’ve seen come from dealerships putting quality sales people into this role and giving them the training they need on the computer and in the necessary administrative functions. 

o        Above all, your ISM candidate should have excellent phone skills and possess the ability to establish relationships with customers over the phone and, of course, to set appointments.

 

§         Organizational skills and the ability to multi-task

o        The Internet sales professional role can be multi-functional, including managing leads, updating inventory on your website, managing relationships with lead providers, measuring results, and many other activities.  It’s important that your candidate has a clear understanding of the full scope of duties expected of the position. 

 

§         A willingness to put in the time necessary to make the department successful and to meet customer expectations

o        The Internet is 24/7.  Most customers shop online after traditional sales hours, so responding to leads in the evening and on weekends should be expected for this role.  A commitment to communicate with customers after normal business hours can mean winning sales from dealers that simply don’t have that level of commitment.  

 

 

Promoting from Within or Recruiting – Finding the Best Person for the Job

 

Some dealerships have a pool of high caliber sales people that are eager to try out the role of Internet sales manager. In other cases, dealerships have brand new departments and need to go outside the organization to find the best person for the job. Though many Internet departments are still in the formative stages, it’s important to keep in mind that there are veteran Internet sales professionals out there who may be considering a step up to a managerial role.  Here are some avenues to consider in your search for the best ISM, or to enhance the Internet skill sets of the sales people you already have in the role:

 

§         Take part in Internet marketing conferences where you can network with leading ISMs

§         Consult published lists that rank top ISMs

§         Talk to other professionals who work with Internet sales professionals, such as:

o        Your manufacturer

o        Your Internet lead provider (who probably talks to dozens of ISMs every day)

o        You web design company

o        Your lead management tool provider

 

Giving due consideration to what it takes put the right person into this important position can mean failure or success for your Internet program.  It’s essential to have a clear understanding of what it takes to operate a successful Internet department, and to have a well-defined vision of the qualities you expect from the person running your department.  A combination of clear expectations, the right person in the role, and continued support from management will prove to be the right formula for Internet sales success.   

 

Other Resources that Showcase Top ISMs:

 

§         Print:

o        Ward’s Dealer Business – eDealer 100 issue -   http://www.wardsauto.com

o        Dealer Marketing Magazine - http://www.dealermark.com

o        Dealer Magazine Digital Dealer - http://www.dealer-magazine.com

§         Digital:

o        AutoDealerDaily - http://www.autodealerdaily.com/DesktopDefault.aspx

o        The Dot Com Insider - http://www.dotcominsider.com

 

David Kain is president of Kain Automotive, Inc., Automotive Internet Training Specialists. He is a co-founder and past COO of FordDirect.com.  For more information, visit www.kainautomotive.com or contact David at david@kainautomotive.com.

 

 

 


[PRINTER FRIENDLY VERSION]
Published by Dealix - Home of InvoiceDealers
Copyright © 2003 Dealix Corporation. All rights reserved.
The Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our services. To unsubscribe, enter your e-mail address in the subscription box appearing within the newsletter and choose the Remove option. Or, just click one of the links below.
TELL A FRIEND