The world is full of finger pointers and we certainly don't need more.  I'm so sick of people not taking responsibility for things.  If you've been in management, or have had to keep multiple vendors connected, then you have probably felt my same frustration.  Before this turns into a rant I want to say I have been enlightened.  Yes, there are certainly some childish finger pointers out there (that's right, I called you childish) but most of it comes from a lack of understanding.

Let's use the pre-owned inventory display conundrum that plagues most dealerships as an example.  This is definitely one of the biggest time wasters and absolutely is hell.

My experience with getting a physical car to show on all the retail sites started with the entry of the vehicle either by a finalized deal (trade) or the wholesale department (auction) entering basic vehicle information into the DMS.  From there it was typical for some digital dead time as we waited for service to check the car out and update their end of things in the DMS.  Then it could be onto some extra reconditioning.  During this time stock photos and "Call for Pricing" are the digital attire for customers to browse - exciting!

While this car is "digitally naked" (feel free to snag that term) the inventory merchandising tool (a HomeNet-type of tool) is showing your photo/comment/pricing to total inventory ratio as being a single car off.  This gets the boss' blood pressure up as you're tasked with cracking the whip on your photo takers and window sticker pasters.  Of course, they're screaming back that they can't find the car or it is in reconditioning.  Then your representative from vAuto or AAX is telling you the dealership is doing a terrible job on its turn rate.....such is this never-ending fun.

When we've finally got the car "digitally dressed" we come across a new problem:  why it isn't showing on Cars.com.

1. We've checked the DMS:  status code - check, GL Balance above $xxx - check, all necessary fields filled - check.
   
2. We've checked the inventory tool:  photos - check, comments - check, price - check, necessary fields filled - check, last feed push within 12 hours - check.
   
3. We've checked the pricing tool:  updated price in last 5 days - check, that price matches the inventory tool - check.

Why isn't this car on Cars.com?

1. Call the inventory tool support folks - they have no idea....all looks good.
   
2. Call the used car manager to see if he manually deleted it - nope....he wants it online ASAP and now he knows there is a problem, so he's getting the GM involved - fantaaaastic!
   
3. Call the Cars.com rep to be reminded that you requested the feed be switched from your inventory tool provider to your website provider because they can now push videos to Cars.com.
   
4. Call your website provider to have them point the finger back at your inventory tool provider.......fuuuuuuuuu....

If you read through all that, I apologize.  I know it was painful, but so is the world of complicated systems mixed with a world of too many needed steps to get a simple chore done.  This is the world we live in and it is a world wrought with little accountability....or should I say little understanding.  The simple answer is "hey vendors - build something" but the truth is the vendors build stuff all the time.

Much of the problem is that people love shiny objects, and in dealer groups, there isn't always a single voice of authority on which products a group uses.

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So, we come back to a need for understanding instead of finger pointing.  Take the time to understand your systems, take the time to understand your process, and create a documented path of accountability so people can understand where to go when a step in the system breaks down.

How many people in your dealership truly understand your technological process?

Here is a simple diagram you can model your process flow off of (example being the inventory feed flow):

How do some dealers over achieve while others just plod along and settle for mediocrity?

I often ask myself this question as I monitor the progress of my clients. My training program provides me with the ability to monitor the scores and results of my clients, and it’s always nice to see a new client climb their way to the top of the list. Yet there are others who start off in the bottom 20% and stay there month after month.

As a coach and trainer this troubles me and has led me to incorporate accountability tools into my training program. But, no matter how good the solution or product, change only happen when effort is put forth. You will not get physically fit by simply purchasing a gym membership. It takes a lot of hard work and effort to make a difference.

Dealers often waste thousands of dollars to procure solution after solution with hopes of increasing automobile sales. Vendors claim their products will help you sell more vehicles, however, if not used properly the investment becomes another needless expense added to your bottom line.

How many of you have the latest and greatest CRM tool, yet your sales team doesn’t use the tool as intended?

How many of you spend thousands of dollars on advertising, yet your salespeople are not trained to properly handle a phone call?

What about the Internet leads that generally go unattended for hours before a salesperson decides to respond? And if they do respond quickly, it’s typically just enough to satisfy the expectations of the manufacturer. Simply throwing money at a problem does not solve the problem.

Do you want to be great in 2011?

Well it all starts with the captain of the ship. If it’s not on your radar screen it certainly won’t be on the minds of your employees. Do you want to drive positive change in your dealership? Why not start by putting a well thought out process in place? Explain the process, provide training on the process and demand results. Then, monitor and manage the process and hold your staff accountable.

Failure to execute should result in the execution of ones employment (?).


Staff who have been trained but still don’t meet expectations should be replaced. There is no reason to settle for people who just want to be mediocre, including General Managers.

Success in this industry is generally very well compensated. Parting ways with underachievers sends a clear message to your employees. “Be the best at what you do or we’ll find somebody who will.” Getting rid of slackers makes room for superstars and leaders should always be on the lookout for the next superstar.

Bringing competitive people into your business will increase competition among your current employees and, ultimately increase sales.

Consider tying compensation to more than just units sold. For example, if you pay a salesperson 20% commission on sales, consider holding 5% percent back. In order to be eligible for the other 5%, require employees to meet certain expectations like the ones below:

• Maintain a minimum CSI score of 95%
  
• Customer e-mail collection rate of 75% or higher
  
• Log a minimum of 50 new prospects in your CRM each month
  
• Remain current with manufacturer training expectations
  
• Maintain a Phone-up Ninja score of 2.5 or higher on Phone-ups
  
• Schedule 20 solid appointments per month.

Criteria such as these are critical to the success of your dealership and should be modified as needed based on your goals.

Consider starting with some simple goals and as the bar is raised, raise expectations. The pay plan of your managers should reflect these goals. For those who do not meet the criteria and collect their 5%, give the money to the top three performers in your dealership as an added bonus. Start rewarding those who are driving the majority of sales. Salespeople are coin operated, so manage your pay plans accordingly.

Many of you had a profitable 2010 and perhaps that was due to the processes you have in place, or the hard work of your employees. However, some of you may have prospered simply because you were open for business and our industry saw more buyers this past year.

What if we experience another dismal year like 2008? Now ask yourself this question,"How satisfied am I with the way my operation is currently running? What can I do differently that would allow me to sell more vehicles? How can I provide my customers with a better shopping experience?” Make a list of your areas for improvement, build a process, and get to work!

With that said, what are some of the process you have in place now that have been successful for your dealership?

What process would you like to develop for your dealership in 2011?

DALLAS--Industry leading automotive CRM and marketing provider, eLEAD CRM, has unveiled a new corporate Web site, eLEADCRM.com. The new Web site features its best-in-class Bundled Solution Platform that provides auto industry professionals the most powerful and effective tools to improve dealership performance and strategic relationships among every department. The eLEADCRM.com redesign incorporates fresh graphics, showcases the company’s new automotive blog,http://www.eleadcrmblog.comeLEADCRMblog.com, and dons a user-friendly interface that streamlines visitor access to the latest information about eLEAD CRM products and services.

“Since its inception, eLEAD has continued to develop new products and enhancements. We want to make it easier to access our tools, expertise and content that help Dealers meet their day-to-day operational objectives”

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“Since its inception, eLEAD has continued to develop new products and enhancements. We want to make it easier to access our tools, expertise and content that help Dealers meet their day-to-day operational objectives," stated Bill Wittenmyer, Vice-President of eLEAD CRM. "Additionally, we want to ensure that the content on our Web site – from news releases to expert articles to videos – is highly visible in search engines and easy to share through social media tools such as Facebook® and Twitter®.”

With over 25 years as a leader in the automotive industry, eLEAD CRM is at the forefront of the trends and issues shaping today’s auto dealer and dealer group. eLEADCRMblog.com now provides the opportunity for open, real-time interaction with the automotive community.

NADA convention attendees can find eLEAD CRM at booth 2226S in the South hall of Moscone Center, San Francisco NADA Convention and Expo.

About eLEAD:

Founded in 1985, eLEAD has steadily grown to over 700 direct employees with the number one automotive call center in the nation. eLEAD offers a bundled solution approach, a single login gives dealers access to CRM, desking, pre-owned inventory management and marketing. The company’s unique month-to-month business model fuels their sense of urgency to deliver monthly results. Along with an impressive number of recent groups that have chosen to partner with eLEAD, the company focuses heavily on maintaining their large reference list of over ten year customers. For more information, visit www.eleadcrm.com,