After the 2008 recession layoffs, we put the GMs on an ROE (I like that Shaughnessy - stealing it) pay plan at Checkered Flag. It was a pure headcount to profit number that was set for each department. Parts had a different profit per employee number then sales for example. But porters and detailers fell into this statistic too.
It forced the GMs to be diligent about who was on the staff and that also invested them in making sure the people were able to do their jobs. Obviously, it did not last, but it was a helluva neat experiment.
I Love the article [USER=11821]@shaughnessy2323[/USER] and can tell you the national average for engaging with internet leads (email response from the customer, "contact made" phone calls, and even floor ups) is less than 16%. If the average dealer received 100 internet leads they speak to 16 of them. They close 20-30% of those making the REAL (not cherry-picked) internet lead closing ratio closer to 5%.
If you think that 5% number is low, I agree. In my opinion, the issue is in what is being sent back to these leads and what is being communicated over the phone. Customers want two things from dealers:
- Can I buy THIS car (is it available)
- For how much
The latter question "for how much" is where dealers fuck things up. It is so difficult to get an actual out the door number or payment (yes, that's what the customer is after - out the door numbers) the person working directly with the customer creates BS excuses as to why they can't provide it. The customer translates it into two things: 1) you're expensive and 2) you have terrible customer service. If dealers can make it easier for their staff to answer those two questions for every customer they'll see improvements in... well, everything.
