Having been in the Industry, at the same organization for 7 short years as ecommerce director and working with a number of dealers I have seen Internet sales go from 0 to 3-4 a month and gradually move up to 28, 30, 35 a month average at some dealerships that sell average 140-160 units per month new and pre-owned in a year, these are pure Internet Department Sales not tied into BDC's. This number can double in the BDC environment. I know where Jeff is coming from.
In some of these dealerships there is no one in the sales/service department management or staff that was there when I first started calling on them. Is this turnover or what? The only person left is the dealer owner, President or General Manager and the ISM.
Some of these guys have a revolving door for turnover and complain all the time on how unhappy they are.
I tell them what my Father always reminds me; "If you always do what you have always done you will always get what you always got."
Having seen so many General Sales Managers and Sales Managers who have come in over the years, looked at the Internet Department and wanted to place their imprint, their change, modify the process, change CRM tools, change LMT's, out source, in source, contract out. Dealers go from their own web site to a cookie cutter concept to a 3rd party. They have lead 3rd party lead providers; then do away with the lead providers, it goes on. They have little or no clue to what makes ecommerce work because they do not understand the nuance of the system.
It is difficult for a hunter to appreciate the needs of a farmer and vice verse. Many times the Hunter yearns for what they perceive the peace and tranquility of the farmer's life but they cannot. Same for the farmer
One thing is we learn from these challenges, it helps us become stronger. One major thing I have learned is the client, at this point, increasingly each year is looking more and more at the Internet to research, decide and purchase.
Dealers that take the old approach and work with CRM operators that promise quick results, web sites that look like supermarket tabloids, treat customers like they were on a showroom experience, have the need to roll around on the parking lot and beat up the customer on pricing will never know and effectively service the Internet Consumer.
There are so many successful companies out there that are able to do this. LL Bean, Amazon, Dell, Harry & David, ebay the list goes on. These companies have huge databases they work, manage, cultivate and keep fresh. They mine these databases very effectively and sell a ton of goods and services to the clients.
We build a relationship with them and give them the information they request and meet with them and they buy when ready. It maybe a week or month, I recently had ISM's client come in 4 years after she first met with them on line and they made a purchase.
I will dare say, and this maybe more of an International observation at this point, that in the next few years we will see more and more virtual dealerships that outsource the service work on a contract basis and will focus on selling/leasing vehicles, warranty's and service contracts to clients they have built a data base on, brokers on line. There are already small pockets of the going on in the US.
We see companies like eBay that sell more and more vehicles on line every year and the consumers are lining up to purchase because they trust the system. This is not true in just the USA but Internationally as well. OEM's have people on US Military installations worldwide that have been doing this for years.
China as a emerging economic world power in many ways is innovating this ecommerce process and there are many examples that the interested observer can see for themselves.
The American Auto Industry is ripe for this type of innovation and change as (with the exception of Toyota and Honda) the Industry is in shambles.
Where there is crises and trouble there is room for opportunity.
This is fertile ground for young entrepreneurs like Jeff kershner and hundreds of the ISM's across the country that will one day realize they are in possession of a key of knowledge that will open a door of opportunity for them.
