Is the Internet Department dead?

[Ashton526]

Hello all - I just joined and I'm really impressed with the amount of quality information on this site. Let me know if there is already a thread on this topic...

Currently, our Nissan dealership has only one ISM who works all the new car leads. He is phenomenal at what he does, but there are too many leads for him alone. Cherry picking has become an issue and management has hired me to oversee him and another salesman that they are bringing on.

Obviously, they are trying to expand the Internet Department...

My question relates to the setup:
-Are there any dealerships empowering the sales' staff to work internet leads? If so, how is it working out?
-Should the two departments combine given that almost every buyer now researches online before coming in?

On a more fundamental level, this relates to basic sales' employee qualifications - shouldn't the modern-day-salesman have the skills and technical abilities to effectively communicate with the customer, whether it's by email, phone, or face-to-face contact?



Appreciate your thoughts and comments...

-Ashton

 

[bpreston]

-Should the two departments combine given that almost every buyer now researches online before coming in?

On a more fundamental level, this relates to basic sales' employee qualifications - shouldn't the modern-day-salesman have the skills and technical abilities to effectively communicate with the customer, whether it's by email, phone, or face-to-face contact?

I think the answer regarding whether the two departments should combine depends. We have two stores, Preston Motors and Preston Honda, that has 14 great, veteran sales people that have been with us for over 20+ years and have large owner bases. Being that they are older and that they are for the most part computer illiterate we have a dedicated internet department at this store that only handles internet leads and phone ups. However, as our seasoned sales men retire will be moving to an internet dealership.

At some of my smaller stores where turnover is high, we have already made this move so our sales people not only handle internet leads and phone ups, but also walkins as well. We are trying to convert our "floor" sales people to handle internet leads and phone ups, which has been a work in progress.

With unemployment the way it is, at the Preston Motors and Preston Honda location I have had a lot of success hiring college grads as internet sales people. Obviously these internet sales people are very skilled and can effectively communicate through all the aforementioned mediums. It will require a lot of work to train these people to sell, but it is much easier to train their phone skills as they don't have the bad habits the stereotypical sales people have.

On average they get roughly 125 leads/month are for the most part closing at least 12% of their total leads and making a good living as it is even without an owner base.

 

[joe.pistell]

Back in the day, I understand why the "Internet Department' was born. It was the new beast, it required new skills, it was driven by a scary new customer that wore pocket protectors. It was a small fraction of the overall market... I was there, I get it.

Why it hasn't died is... ahh... I still don't know.

 

[danoneil]

I work at a Honda Dealer in Baltimore and our internet department is thriving. We represented 46% of the business. By the word "we", I mean me and another guy. We have two dedicated internet managers and that is all we do. Having 2 managers was implented last year and sales have gone up every month since. Response time is key. When you have managers responding within 15 minutes, it is viewed as good customer service.

Whats exciting is in August we set a new store record with 100 sales. We credit the record numbers to the clunker program. In the month of December, we hit 89. December is typically a down month, but we managed 89. We are excited to keep on refining our department and keep improving.

Internet departments are far from over.

 

[KoreyB]

Agreed Joe! Internet IS business. Is it really so mystical as to require a department? The Internet is a tool like phone, like mail, etc. Salespeople should be versed in all.

 

[Jeff Kershner]

I want to believe it's dead but since "people" are part of your process - sometimes they are necessary until you can restructure and re-train your existing people w/o out cleaning house.

Ultimately this the goal to achieve.

 

[Ashton526]

I agree with most of you, especially with the veteran salespeople that are uncomfortable using computers. There are a lot of baby boomers out there that are set with their customer base, set with their communication, and set with the status quo. I can name about 6 or 7 at our store. It is a generational barrier to change that is really difficult to overcome - even trying to get them to leave updated notes in the CRM.

A transition is happening and those dealerships that can stay ahead of the curve are going to have that competitive advantage. The sales rep job description is changing. I find myself asking technology questions in new hire interviews - heavily focusing on their eagerness to learn and adapt. Internet leads are the ups of the virtual showroom and every salesman needs to have the skills to serve these customers - I really don't think it is too much to ask. It is just going to take time.

 

[joe.pistell]

I deal with the older players all the time. Hell I'm old. I don't mind them them not knowing, it's the the "you know I can't do that" attitude. Who passed out the free passes to become brainless when a keyboard appears?

 

[NTIV10]

I don't think the Internet department is dead. I think the floor sales department is dead. Call me crazy, but my Internet department is responsible for 80% of the business in our store, whether counting by gross or by units. The sooner dealerships realize that embrace the Internet is the only way dealerships will survive, the sooner they will leave those who don't way, way behind.

 

[Matt M]

Since adding our internet department (I'm the only person for 5 rooftops) our web traffic, website views, cars.com / autotrader.com searches have gone up over 12x's. I think we were simply ignoring a section of the market that had gone from being the minority to the majority. Now that we're actively going after it sales have been on a near 45* incline every month. We have yet to level off and if I have any say-so we won't for a while.