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...

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Comment by Evan Johannson on May 2, 2013 at 9:31am
Great stuff here Mr Natural. The basics of follow up and internet presence are pretty well established, but how many of us are really doing it every day? How many of us really know how?
Comment by Mr. Natural on May 1, 2013 at 10:36am

Thanks for your support Bobby...As always, your words ring true. To touch on what you said: I encourage my people to never talk about the cars on the phone or in email if possible.  The time for that is when the customer is in the dealership. (of course, if they ask a direct question about a vehicle, we have to answer it.)  The hard thing is to get the sales staff to follow through with the dignity, respect, trust, and sincerity groundwork I have tried to lay down for the customer.  It's tough when the customer is all set up with sincerity/honesty/trust, and the SP follows through with only a feature/benefit price justification.

In my department we try to sell our different and better culture. Sadly, that's not always what the customer gets when they arrive.

Building a great internet department is no easy job, and there's no rubber stamp that works for every dealership.  You have to understand what you've got, and what resources you have. Once you have a grasp of what you are working with, only then can you apply a working approach that gets results.

You're right...everyone wants to run, but first you have to have a direction, and the ability to walk.

My Dog article is almost complete, and the finished product WILL surprise you. Stay tuned.

Comment by Mr. Natural on April 30, 2013 at 5:23pm

Thanks Jason, and you're right...In addition I would mention that even if you have your salespersons onboard, each is going to learn and use the CRM in his own way, and to the best (you hope) of his ability. We can't expect each SP to understand each feature the same as we do.  Nurture what they do know and what they can do. They have to want to ride the bus before they know exactly how to do it.

Comment by Jason Mickelson on April 30, 2013 at 5:17pm

I agree that training is the key.  The CRM is a great place to start. Save your money on the CRM if no one uses it or has customized the processes and templates to your dealership.  This all starts from the top down.  Examine your logic if you believe management will be able to tell the sales team to use it and then sit back and watch it happen.  The management team must lead the charge into battle.  Good luck!

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