2011 Auto Dealer Internet Survey - what do you think ?

[danoneil]

Here is a link to the article. Here are some of the results from the article

What is the biggest sales objection you are currently hearing from customers?”

• Didn’t have desired model available: 25%
• Can’t afford a new vehicle: 14%
• Can’t get financing: 20%
• Consumer confidence with current political situation: 22%
• Not getting the price they want from dealership: 10%

Though inventory shortages are affecting many dealerships, the rest of the answers related to the economy add up to the fact that 58% of consumers can’t afford to, or are reluctant to, buy.
“What are the biggest challenges for your Internet marketing departments?”

• Keeping up with lead volume: 31%
• Quality of staff: 28%
• Staff’s failure to adhere to written processes: 23%
• Lack of management buy-in: 21%
• Lack of staff accountability: 15%
• Lack of staff training: 15%

Additional responses included “other” at 15% that included a mix of responses about quality of leads, lack of inventory and staff morale, and finally, high staff turnover at 11%.
It seems that staff issues continue to be a major concern for Internet Sales Managers, as outlined by a study conducted by Kain & Stauning earlier this year.


The comment of high staff turnover at 11% is what jumps at me the most. Even though at my dealership I am lucky enough to have a very experienced sales team and very little turn over, it's probably a little higher in most dealerships.

Do sales people not get that the internet is extremely important ?

Is farming out your leads to salespeople really the best plan ?

Does a good auto responder qualify as quick "response" time ?


So what do you think about the survey ? Any comments ?

 

[ArtMorris]

I am lucky enough to have a very experienced sales team and very little turn over

Do sales people not get that the internet is extremely important ?

I would say that the longer you've been in the business, the less likely you are gonna "get it".

Does a good auto responder qualify as quick "response" time ?

Do you sell for a manufacturer with a knee-jerk performance metric that requires you to "stop the clock"? Yes, it can qualify as a quick response time.

Do you want to actually give your customers a quick, accurate response to their inquiries? Your autoresponder might not be doing that.

 

[ddavis]

The survey was conducted from mid-August through mid-September and summarizes results from 151 participants; 54% Internet managers and the rest a mix of Internet, sales, BDC, marketing and senior management titles.

I'd like to see this same survey on DealerRefresh for eCommerce and Internet Directors. This is a very small sample with the majority not having a dog in the race. I also assume that they buy leads through AutoUSA.

I'm not surprised to see how many plan to cut their Internet budgets. They have seen their Internet expenses rise and their ROIs fall. It is getting more expensive and most dealers don't have a clue.

Do sales people not get that the internet is extremely important ?

When I was an Internet Director, everyone wanted to be in the Internet department. We sold the majority of the cars and my guys were the highest paid.

Is farming out your leads to salespeople really the best plan ?

I had a staff of Internet Managers working cradle to grave. All leads and Internet phone calls came to them. I don't want my leads going to the weakest link on the floor.

Does a good auto responder qualify as quick "response" time ?

I only had an auto responder active when we were closed. An auto response is no response. You get a lead, pick up the damn phone.

I was in a friend's store on Saturday, looking at his CRM. Their average response time was 5.5 hours! One ISM had 58 leads and ZERO sales. His website is a disaster. They don't want to spend any money! I guess that they will remain content with wasting it.

 

[danoneil]

For me the biggest challenges part is the most interesting.

I work at a Honda store that averages 600 leads a month.At one time we had one ISM and 7 experienced sales people handle leads. As many know, salespeople tend to forget about timely follow up, which decreased the closing percentage.

2 1/2 yrs ago we made a change to a two dedicated internet managers who handle all the leads. Sales doubled and every lead is managed. Plus we have more salespeople handling the incoming phone calls and walk-in's.

The only leads we hand out are special finance leads or if we have received a deposit.Internet is all we do. When we get to the month end, we'll assign out no-response leads for the month end push.

When I see a 31% challange for keeping up with leads, I think of the solution implemented at my dealership works.

I think dealers who have one manager and a bunch of salespeople handle the leads, I can see 31% as a real number. Same thing with the 21% associated with the lack of management buy in.

When i see the 28% for lack of quality of staff, an important part down to a basic understanding of good customer service.

You have to have proper & continued training. One phone call to phoneup ninjas and their training program would rectify that problem. Also reading a good sales book such as Dale Carnegie could make a difference. I think asking young sales people to go shop their competitors is another way for new sales people to learn about the business.

As a side note about customer service. My son works for Chik Fil A. I encouraged him to work for this company because the customer service skills he has learned ( he says please, thank you & even a yes sir at home now ) will be with him for the rest of his life. Young adults are not taught customer service in college. The ones who work for a customer service type company such as chik fil a or any other company that stresses customer service will excell.

When I have had past troubles with my american express card,eBay, PayPal & even comcast,listening to how these companys handle customer service complaints, is a learning experience.


Internet is the most important customer service position in a automotive dealership and it is certainly lacking at most.

 

[ddavis]

Dan, You have two Internet Managers getting 300 leads, each?

I saw all of the different personnel types answering those questions. I bet the majority of Internet and BDC Directors said there was a problem with management buy-in but not from the "senior management titles". Let one of the Moderators from DealerRefresh put up those same questions and limit it to Internet and BDC directors and lets see. You would get a larger sample and answers by people much more in the know.

I would like to see the results of these:

How is the current state of the economy affecting your Internet marketing budget decisions?”

• 49% plan to spend the same amount as originally budgeted this year
• 31% say they are cutting back on planned expenses
• 23% say they plan to spend more than originally budgeted this year

 

[danoneil]

Dan, You have two Internet Managers getting 300 leads, each?

300 each on average But we also have the leads from prior months.

Leads are hot for 14 days at the most.. imo. Of those 600 leads we average 15% closing. However, being a Honda store and not having alot of inventory, naturally those numbers have dropped a couple points in June July Aug & Sept.

If senior management has managers no buying in 100%, that would be a huge problem.

 

[ddavis]

The great thing about a forum like this is that people can voice opions, be friends, even when we disagree.

I didn't allow my Internet Managers to have more than 85 leads/month. I was the only one in the store that could kill a lead. I am in the "buy or die crowd". About 15% of the customers we closed were 90+ days old.

I think that many Internet Directors complain that they don't have a buy-in from their GMs. Sales Managers argue that too much money is going to the Internet department. Salespeople complain that ISMs are getting preferential treatment. I'm depressed that I'm not in the game.

The great news for Honda and Toyota dealers ...the inventory is coming and they have accumulated advertising money to push it.