ZAG Performance

[Rick Tala]

I'm a long time follower but this is my first post. It has been a long time since I've visited DealerRefresh because I was out of the business for awhile.

I've been back for a year, in sales and in F&I. I'm now being asked to takeover our ZAG leads and I would be the whole department for the store. That means responding to new leads, follow up, setting appointments, selling and delivering the car. Our current challenge is that we are in a very competitive with seven Honda dealers all within a 45 minute drive. What I've been told is at times we are slow to respond to leads and I believe that is because when the current ZAG rep is selling a car, leads are left for hours while he is working with a client directly. I believe we can be much more productive if the focus of the ZAG rep was to make contact and set appointments that are assigned to the sales team. My General Manager wants me to present an idea that shows how this model would be more effective. Do you have any advice or examples of how your dealership is handling ZAG leads? Examples of pay plans would be helpful too.

Your advice on this would be greatly appreciated. I look forward to hearing from you.

 

[eddyshaf]

Rick - You have highlighted the age old dilemma of handling - to BDC or Not to BDC - your Internet Leads. Much of this debate over the years has focused on Response Time which is directly related (by many studies) to close ratios. What is more commonly mentioned these days is Response Quality which is more and more recognized as a vital component as well.

In a perfect world the customer would have one point of contact from the beginning to the end of the internet sales process - commonly referred to as "cradle to grave". Many studies show that the majority of consumers prefer this method for consistency and it naturally fosters a relationship selling atmosphere which your GM probably values as well. The downfall of this method is that inevitably the person or persons assigned to handling the leads will be with customers and response time will suffer. The upside is not only the single point of contact, but also the benefit of (potentially) better product knowledge and therefore quality of response either on the phone or via email.

Alternatively, the dealership would employ a team of people to quickly and professionally respond to leads and set appointments. While this option can greatly reduce response times it also means that eventually the customer must be turned over to a salesperson and this switch of contact points can lead to all kinds of potential issues, yet when properly handled it can be completely seamless as well. The team employed here is usually hourly with some type of bonus structure based on number of appointments set/shown/sold and overall earning potential is generally much lower, leading to (generally and incrementally) an inferior quality of employee versus the other system.

It seems that you would prefer to act as an appointment setter because it would provide a better consumer experience and the dealership would benefit more. In this view of things, you are looking to take on more of a management role, which dovetails from your F&I experience and exposure to the bigger picture. However, my advice, despite your obviously altruistic motives, is to take the position as offered. Let me explain why and what the stipulations should be.

If you are in a larger market "with seven Honda dealers all within a 45 minute drive" I am assuming that the volume of leads is substantial (in fact it would need to be 80-100 monthly for this to work for one guy) which means that you would get plenty of opportunity. You would need pricing authority and autonomy - not complete freedom, but enough authority to "act as if" you are the decision maker with regard to price...so "guided authority" I guess would be a good way of putting it. If you have already worked in F&I then the management team probably trusts you more than the average salesperson, so obtaining this pseudo-management type role should be achievable. With a significant volume of leads and the authority to work them (within the established guidelines) you will benefit and by extension, so will the dealership. Additionally, having access to the leads 24/7 is vital, so if you are using a substandard CRM system which does not have the capability to effectively respond remotely (AKA from your smartphone or tablet) then I would advise the dealership to employ the BDC method.

The trick is to figure out how to manage the lead and sales volume to you can continue to offer a high quality initial response within an acceptable period of time...notice that I said acceptable time rather than "the fastest time"? That is because the majority of consumers have repeatedly indicated that they value quality over speed though it is true that having both provides the best possible consumer experience and benefit to the dealership...and you!

Best of Luck - keep reading Dealer Refresh and you can't possibly go wrong!!