The numbers don’t lie

Practical tips to build your high-performance digital sales team

I recently read a statistic that said a typical dealership has less than 20 per cent of their sales staff dedicated to supporting their Internet-based sales efforts.

With more than 90 per cent of shoppers starting their buying journey online, does it make good business sense to only dedicate 10-20 per cent of your staff to Internet sales?

I’m no stats major, but even I know that those percentages don’t represent a solid strategy for future growth.

I’m not saying that you need to go out and immediately hire an entire team of young techies to fill the gap. But what I am saying is as you forecast annual sales and identify the staff you’ll need to meet those targets for this year, make sure you build a team and structure your departments to include the growth of Internet-influenced sales.

Most dealers tell me that only 15 per cent of their sales can be attributed to an Internet lead. While this may be true, you’ve got to remember the remaining 85 per cent are also influenced by the Internet — search, online marketing, website, chat, and leads.

Even the majority of your phone calls have an Internet influence. We also know that with the continued growth and buying power of the millennials, the way you do business, structure your departments, and hire your staff should be greatly influenced by their shopping behaviour. Let’s take a look at some common Internet support business models for your dealership.

What structure meets your needs?
People, process and technology are the holy trinity of any successful dealership. You’ve heard me mention these principles in some of my past articles, but what we’re focusing on here is the people component — the crucial human resources behind every successful dealership.

There is no “one-size-fits-all” formula when it comes to shaping your dealership for success. Structuring your high-performance sales team to meet the needs of today’s Internet-influenced shopper takes into account many factors — dealership location, size, eLead volume, customer base, etc.

But the fact remains that having members or even a team focused on internet leads will only serve to drive sales higher. It’s your decision how you set your dealership up.

Distributed/Showroom model
Management distributes online leads to the sales team for followup. Most dealerships with lower lead volumes start here.

Our Retail Performance Group recommends a maximum of 80 leads per month per dedicated consultant to ensure the proper followup strategies are maintained.

Taking the “compounding lead factor” into account, one consultant will have a difficult time managing more than 80 leads per month. So, as you dial up your digital marketing efforts and drive more customers to your optimized website, surpassing 80 leads per month will happen quickly.

The Distributed Showroom model is the most cost-effective way to manage a lower volume of leads, as you will have a select team managing eLeads, phone ups and showroom ups. The weakness of this model is that your sales team is managing every sales channel, thus Internet leads may not take precedence. To reach the optimal close rate of 15-18 per cent on eLeads you will need focus.

Team Management Tip #1: Treat receiving eLeads as a privilege. Track the close rate of each sales consultant and drop the one with the lowest conversion on eLeads at the end of the month from the eLead distribution team. This promotes a competitive atmosphere and holds your team accountable for producing results with eLeads.

Internet Sales Consultant/Manager (ISM)
Now your digital marketing efforts are paying off and eLeads are starting to flow at a good clip.

With your eLead count consistently above 80, it may be time to move your structure to a dedicated consultant or manager who can apply needed focus and maximize the results. At a 15 per cent close rate, a dedicated individual may sell around 12 vehicles (at 80 leads) a month from eLeads.

Now this individual is typically an A-Z Internet sales person who manages each step of the process — from responding, setting appointments and delivering the vehicles.

The dedicated ISM structure is the natural progression from the Distributed/ Showroom model but requires a unique individual with a specific skill set to fit the role and truly excel.

Keep in mind that not every sales consultant has the capability to effectively drive the process from eLead to sale. It takes self-motivated individuals who are ambidextrous thinkers with both right and left brain insights to truly drive your Internet sales to the next level, so it’s critical to match the role with the right person.

Team Management Tip #2: Don’t just promote your top sales consultant to this role. The perfect person for this position may not even exist at your dealership today so ensure your candidate has the following skills: attention to detail, responsiveness, task oriented, organized with written and verbal communication skills — and of course, car selling skills.

Internet Department
Progressing to an Internet department is primarily dependent on lead volume and your dealership’s sales targets. An Internet Department is typically a separate team structured to exclusively handle online leads and other online activities.

As your eLead volume grows beyond 80 leads per month, the need to have a larger team to support the growth will increase. The scalability and flexibility of this model allows for the manager to choose how he or she manages the growth and distributes online eLeads.

For example, some dealers may choose to only add Internet sales consultants to the department once eLead volume can sustain them. This approach helps keep costs in check and supports progressive growth.

Team Management Tip #3: How you choose to pay your ISM depends on their job description. As with all pay plans, where you focus the pay is where your results will come from. Some ISMs with a larger team will have administrative duties (website updates, photos, videos, marketing, etc.) and should have a higher portion of their compensation designated as straight salary.

Business Development Centres (BDC)
A progressive approach to managing eLeads and the follow up process is the use of a Business Development Centre. The concept of BDCs has been around for years but not until recently have they become a mainstream approach for managing your Internet business.

BDCs come in all shapes and sizes and therefore can work for both large and small dealers. Typically they’ll work on an “appointment/turnover” process where appointments are set for sales and service consultants and the opportunity is turned over at specific part of the process. This model is so successful because a separate, less senior team “Tees Up” the opportunity for the consultant who can then put their focus on “Showroom Experience” and hopefully convert more appointments into sales.

Putting it all together
There is no doubt that choosing the right structure and finding the right people required to make your Internet lead business thrive is challenging — there are many moving parts.

The key is to have individuals with a positive attitude who are not afraid to grow or take on new challenges. A successful Internet manager must be innovative, educated in all things Internet, and familiar with the nuances of the automotive industry. Make sure you design a team that works for your dealership. This may take a bit of tinkering to get it right, but the key is to start tinkering today.