Dmb paglia people-organizational development for business growth v3

People: Organizational Development for Business Growth & Increased Profits

Ralph Paglia President | Automotive Media Partners, LLC

Ralph will present a combination of dealership case studies, strategy descriptions, tactical action items and recommended best practices all focused on providing automotive professionals with the insights and knowledge to improve the way they grow their teams and business revenues. The key focus is on people, because all research shows that in automotive retail, the key limiting constraint, or growth factor is consistently the people that are attracted to, selected by and become part of each organization.

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Courtesy Chevrolet in Phoenix, AZ Courtesy Chevrolet in Phoenix, AZ became the USA’s leading Internet became the USA’s leading Internet retailer of new and certified used retailer of new and certified used Chevrolet vehicles… Human Resource Chevrolet vehicles… Human Resource Development was the key (secret sauce) Development was the key (secret sauce) to success.to success.

• Organizational Development is the primary and most essential stumbling block that many dealers and GM’s report as the reason for their Internet Sales and/or BDC Operation’s failure or lack of growth into strategically significant levels of sales.

Organizational Development for Business Growth and Increased Profits

Create a Video that showcases why People want to Work for Your Dealership

• Training• Compensation• Benefits• Supportive Team• People Matter• Career Growth

Use Video Role Play Assessment• Pre-Screen Applicants• Identify Training Opportunities• Invest Time with the Most Qualified Candidates• Use as a Recruiting Tool• Ideal for Social Media based Recruiting

Hire The Winners Assessment: Hire The Winners Assessment: Accurate Results in 20 MinutesAccurate Results in 20 MinutesHire The Winners Report and Assessment Example

TARGET TRAINING FOR TARGET TRAINING FOR CURRENTCURRENT TEAM MEMBERS TEAM MEMBERS

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000Courtesy Chevrolet Monthly Web Traffic; Nov. 2005 through Jan. 2007

BZ Results site Cobalt GM PowerShift Site Reynolds Spanish Site SEO/SEM Driven Micro-Sites

AZ Central-Chevy Site ClickMotive SEM Sites Other Sites

Growing Your Team’s Capabilities Allows Dealers to Feel More Confident about Online

Ads

SEM/SEO Generated Leads14,79224%

Third Party Sourced Leads26,09542%

GM Provided Leads1,9973%

CRM & Non-Web Generated Leads18,73831%

Courtesy Chevrolet Lead Volume by Broad Category Source Type

SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads

61,642 Leads Generated and Tracked within CRM System61,642 Leads Generated and Tracked within CRM System

Unit Sales Volume by Lead Source Category

Third Party Sourced Leads98925%

GM Provided Leads2496%

SEM/SEO Generated Leads1,07527%

CRM & BDC Recycled Web Generated Leads

1,69542%


4,008 eBusiness Department Sales of New & Used Vehicles in a single year 4,008 eBusiness Department Sales of New & Used Vehicles in a single year Segmented by Marketing Category Segmented by Marketing Category (Total Store Sales >11,000)(Total Store Sales >11,000)

Growing Your Staff using Large Quantities of Leads will Generate Higher Volumes of Sales

Sales/Lead Closing Ratios ranged from 5.15% to 16.64% when Sales/Lead Closing Ratios ranged from 5.15% to 16.64% when segmented into categories based on Marketing Typesegmented into categories based on Marketing Type

11.76%

5.15%

16.64%

9.93%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

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SEM/SEO Generated Leads 14,792 591 8,252 5,652 38% 1,075 11.76%Third Party Sourced Leads 26,095 1,339 17,838 6,909 26% 989 5.15%

GM Provided Leads 1,997 55 1,316 501 25% 249 16.64%CRM & Non-Web Generated Leads 18,738 1,997 15,065 1,665 9% 1,695 9.93%

Totals 61,642 3983 42471 14746 24% 4008 8.55%Monthly Averages for 2006 5,137 332 3,539 1,229 24% 334 8.55%

Lead SourceTotal Leads

Working Completed Sold LeadsInvalid Leads

Growing Your Staff using Large Quantities of Leads will Result in Closing Ratio Variations

Internet Strategy Current National Close Rate 9%Realistic Planning Potential is 18%

Pains 80% of a dealer’s Phone, Lead and Showroom traffic originates from the net… What is your dealer’s current marketing strategy? Lead providers? What is submission ratio from dealer’s site? Who updates it? Dedicated people? Process? Pricing strategy? Does dealer monitor and measure visitors, leads, response rate, appt%, show%, close%, profit, CSI, etc… eBusiness training?

Strategic Goal

Drive TRAFFIC to an INTERACTIVE web site that generates leads that flow into dealer’s PROCESS engine which converts them into SALES.Convert Internet leads into showroom visitors that buy cars

Tactical Objectives

Use a predefined and consistently executed inquiry response process, customized email templates and phone scripts that result in appointments that generate increased customer visits to the dealership

Process 1. Autoreply acknowledges inquiry and sets customer expectations2. Email with price quotes on several vehicles and sets stage for phone

contact is sent within 30 minutes of lead arrival (business hours)3. Call customer on phone within 45 minutes4. Schedule showroom visit & test drive appointment5. Confirm Appointment via email AND 3rd party phone call

Technology •Internet leads from ALL sources routed into Lead Management Tool that integrates with DMS, reducing keystroke entry of customer information•Wireless devices for ISS’s that integrate with Lead Management Tool

Metrics Lead volume by ISS with response time, appointment & closing ratios

Creating Process Execution Capabilities Drives Staffing Requirements

No dealership has unlimited process execution capabilities…

Inbound Internet Lead Management ProcessInbound Internet Lead Management Process

Dealer Lead Dealer Lead Management Management Process MapProcess Map

Dealer Lead Dealer Lead Management Management Process MapProcess Map

Growing Your Sales Team Requires that you Define what Your Lead Response Process Should Look Like

5.5. New Chevrolet Internet SalesNew Chevrolet Internet Sales6.6. Used Car Internet SalesUsed Car Internet Sales7.7. Bell Road Internet SalesBell Road Internet Sales8. Commercial Internet Sales

1.1. New Chevrolet BDCNew Chevrolet BDC2.2. Used Car BDCUsed Car BDC3.3. Wholesale Parts BDCWholesale Parts BDC4.4. eFinance Sales TeameFinance Sales Team

Growing Your Sales Team works best when it occurs “Organically” and is Specialized

Evolution of a single point Chevy dealer into an online marketing behemoth with 3 fully staffed BDC Team’s, an eFinance Sales Team and 4 Internet Sales Teams. These 8 teams of automotive sales professionals are identified as follows:

Organic Growth: Specialization = ScalabilityOrganic Growth: Specialization = Scalability

Let’s Take a Look at How It Happens…Let’s Take a Look at How It Happens…

Ralph PagliaRalph PagliaBegins at CourtesyBegins at Courtesy

as eBusiness Directoras eBusiness Director

Ralph PagliaRalph PagliaBegins at CourtesyBegins at Courtesy

as eBusiness Directoras eBusiness Director

BDC ManagerBDC ManagerNew & UsedNew & Used

Vehicle Sales Dept. Vehicle Sales Dept.

BDC ManagerBDC ManagerNew & UsedNew & Used

Vehicle Sales Dept. Vehicle Sales Dept.

Internet Sales ManagerInternet Sales ManagerNew & UsedNew & Used

Vehicle Sales Dept.Vehicle Sales Dept.

Internet Sales ManagerInternet Sales ManagerNew & UsedNew & Used

Vehicle Sales Dept.Vehicle Sales Dept.

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Phase 1 Sales Results:Phase 1 Sales Results:Internet sales averaged 88 units per month Internet sales averaged 88 units per month (new & used)(new & used)BDC generated sales averaged 92 units per month BDC generated sales averaged 92 units per month (new & used)(new & used)

Phase 1 Sales Results:Phase 1 Sales Results:Internet sales averaged 88 units per month Internet sales averaged 88 units per month (new & used)(new & used)BDC generated sales averaged 92 units per month BDC generated sales averaged 92 units per month (new & used)(new & used)

Mike GordonIT Director


eBusiness Teams – Phase 1

Ralph PagliaRalph PagliaCRM/eBusinessCRM/eBusiness

DirectorDirector

Ralph PagliaRalph PagliaCRM/eBusinessCRM/eBusiness

DirectorDirector

Joel MattesonJoel MattesonBDC ManagerBDC Manager

New Vehicle SalesNew Vehicle Sales



George SalmanGeorge SalmanInternet Sales ManagerInternet Sales Manager




Francisco AbalosFrancisco AbalosBDC ManagerBDC Manager

Used Vehicle SalesUsed Vehicle Sales


Used Vehicle SalesUsed Vehicle Sales Bryan LongBryan LongInternet Sales ManagerInternet Sales Manager


Bryan LongBryan LongInternet Sales ManagerInternet Sales Manager


Kelly Slaughter & Lisa SarataKelly Slaughter & Lisa SarataCRM AdministratorsCRM Administrators

Kelly Slaughter & Lisa SarataKelly Slaughter & Lisa SarataCRM AdministratorsCRM Administrators

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Split&

Grow

Split&

Grow

Split&

Grow

Split&

Grow

•Phase 2 Team Expansion:Phase 2 Team Expansion:Internet split into new and used managed teamsInternet split into new and used managed teamsBDC split into new and used managed teamsBDC split into new and used managed teamsCRM administrative position added (showroom)CRM administrative position added (showroom)

•Phase 2 Team Expansion:Phase 2 Team Expansion:Internet split into new and used managed teamsInternet split into new and used managed teamsBDC split into new and used managed teamsBDC split into new and used managed teamsCRM administrative position added (showroom)CRM administrative position added (showroom)

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80 sales 70 sales

40 sales

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Ralph PagliaRalph PagliaCRM/eBusiness DirectorCRM/eBusiness Director

Ralph PagliaRalph PagliaCRM/eBusiness DirectorCRM/eBusiness Director

















Kelly Slaughter & Cecy GirodKelly Slaughter & Cecy GirodCRM AdministratorsCRM Administrators

Kelly Slaughter & Cecy GirodKelly Slaughter & Cecy GirodCRM AdministratorsCRM Administrators

Patrick MillerPatrick MillerInternet Sales ManagerInternet Sales Manager

Courtesy On BellCourtesy On Bell

Patrick MillerPatrick MillerInternet Sales ManagerInternet Sales Manager

Courtesy On BellCourtesy On Bell

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Designated Sales Consultants Designated Sales Consultants Certified to Handle Certified to Handle

Internet Lead AppointmentsInternet Lead Appointments



Ron Daly & Scott DalyRon Daly & Scott DalySpecial eFinance TeamSpecial eFinance TeamRon Daly & Scott DalyRon Daly & Scott DalySpecial eFinance TeamSpecial eFinance Team

Lisa EsquivezLisa EsquivezeFinance BDCeFinance BDCLisa EsquivezLisa EsquivezeFinance BDCeFinance BDC

Omara SpriggsOmara Spriggsefefinance Salesinance Sales

Omara SpriggsOmara Spriggsefefinance Salesinance Sales

100 sales 90 sales

60 sales 50 sales

25 sales35 salesNewNewTeam

Team

NewNewTeamTeam

NewNewPositionPositionNewNewPositionPosition

•Phase 3 Team Expansion:Phase 3 Team Expansion:Special eFinance teamSpecial eFinance teamCourtesy-on-Bell ISMCourtesy-on-Bell ISM

•Phase 3 Team Expansion:Phase 3 Team Expansion:Special eFinance teamSpecial eFinance teamCourtesy-on-Bell ISMCourtesy-on-Bell ISM

Courtney DalyCourtney DalyeFinance Admin.eFinance Admin.Courtney DalyCourtney DalyeFinance Admin.eFinance Admin.


BDC with 27 Work Stations

90,000+ OutboundPhone Calls / Month90,000+ OutboundPhone Calls / Month

Dynamically Accurate Job Descriptionsand Clearly Defined Pay Plans

“It is a clear and inarguable fact that creating and maintaining precise job descriptions and detailed pay plans is a management responsibility… If you are incapable of writing a detailed job description, then you are simply not qualified to manage employees assigned to perform that job… PERIOD!” – Ralph Paglia

Clearly defined job descriptions that include minimum levels of performance, as well as what measurements and levels will be determined as “superior” performance may be the single greatest missing ingredient in dealership

management execution today…

Clearly defined job descriptions that include minimum levels of performance, as well as what measurements and levels will be determined as “superior” performance may be the single greatest missing ingredient in dealership

management execution today…

Document Roles and Responsibilities For All Internet Sales Positions

* July 2006 Interactive Marketing Budget

Document Pay Plan and Bonus Structure

that reflects taller Internet sales funnel


Document Pay Plan & Bonus Structure that reflects taller Internet sales funnel

Lead Volume puts pressure on response times Lead Volume puts pressure on response times as a factor of staffing levels!as a factor of staffing levels!

Lead Volume puts pressure on response times Lead Volume puts pressure on response times as a factor of staffing levels!as a factor of staffing levels!

Top 4 Ways to Close

More Sales to Leads Received

Dealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry

Purchase Purchase Respondents*Respondents*

who who DID DID NOTNOT

experience experience the attributethe attribute

% of % of Purchase* Purchase* among the among the Leads who Leads who

DID DID ExperienceExperience the attributethe attribute

Statistical Statistical Correlation Correlation Factor of Factor of Response Response attribute attribute

with Vehicle with Vehicle PurchasePurchase

#1#1 Make Direct Phone Contact with Customer Make Direct Phone Contact with Customer (after sending Email w/availability & prices)(after sending Email w/availability & prices) 17%17% 27%27% 1111

#2#2 Send Price Quotes by Email to CustomerSend Price Quotes by Email to Customer 20%20% 27%27% 99

#3#3 Contact Customer more than once by Email Contact Customer more than once by Email andand Telephone Telephone (within First 24 Hours)(within First 24 Hours) 21%21% 25%25% 55

#4#4 Make sure Customers are either Make sure Customers are either CompletelyCompletely or or Very SatisfiedVery Satisfied with the Lead Response with the Lead Response 21%21% 24%24% 33

*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data

Staffing and Organizational Structure DeterminesProcess Execution Capabilities and Monitoring

Customer goes online and submits Lead

Internet Sales Specialist ISS) reviews lead, selects 4

vehicles for Price QuotesSends email with Quotes & Cars

BDC Staff makes initial phone call, collects customer info, sets up an appointment for the ISS

If no appointment, ISSContacts customer and seeks

appointment and/or agreement

Staffing and Organizational Structure DeterminesProcess Execution Capabilities and Monitoring

Lead Process Maps should Lead Process Maps should be indexed to email be indexed to email

templates, phone scripts templates, phone scripts and word tracks so that and word tracks so that

dealership employees have dealership employees have a “paint by numbers” guide a “paint by numbers” guide to what is expected when a to what is expected when a

lead is received. This lead is received. This process map focuses on process map focuses on the first 12 hours after a the first 12 hours after a

new lead is received.new lead is received.

Lead Process Maps should Lead Process Maps should contain brief explanations contain brief explanations for the logic and execution for the logic and execution tips for employees to review tips for employees to review before actually using the before actually using the email templates, phone email templates, phone scripts and word tracks.scripts and word tracks.Actual template illustrations Actual template illustrations make it easy for dealership make it easy for dealership employees to recognize the employees to recognize the right template or document right template or document when they see it in their when they see it in their CRM tool.CRM tool.

When Lead Process Maps are When Lead Process Maps are indexed to correspondingly indexed to correspondingly numbered email templates, numbered email templates, phone scripts and word tracks, phone scripts and word tracks, the dealership is far more likely to the dealership is far more likely to execute the repetitious tasks that execute the repetitious tasks that create customer experiences create customer experiences which correlate with higher sales which correlate with higher sales closing ratios. The best process closing ratios. The best process maps break down email and maps break down email and phone contact processes into phone contact processes into separate flows so that they can separate flows so that they can be executed by different be executed by different resources when scaling up lead resources when scaling up lead volumes and organization volumes and organization structures.structures.

Although many car guys will say they believe in the concept of following up until prospects Although many car guys will say they believe in the concept of following up until prospects either buy or die… Large scale lead generation through highly effective marketing practices either buy or die… Large scale lead generation through highly effective marketing practices requires that scarce resources be allocated to where they will generate the most sales. requires that scarce resources be allocated to where they will generate the most sales. Outsourcing followup on leads that have reached a designated status (dormant) or assigning Outsourcing followup on leads that have reached a designated status (dormant) or assigning them to alternate resources such as a BDC will allow ISS’s to stay focused on the 50% of the them to alternate resources such as a BDC will allow ISS’s to stay focused on the 50% of the leads that buy, and do so within the first 10 daysleads that buy, and do so within the first 10 days

Have a defined process for “closing out” unsold leadsHave a defined process for “closing out” unsold leads

LMP Scoring IndexLMP Scoring Index

Objective Review of Objective Review of Dealership Employee Lead Dealership Employee Lead responses encourages responses encourages consistency and creates a consistency and creates a numeric accountability – an numeric accountability – an LMP Report Card for Dealer or LMP Report Card for Dealer or GM review…GM review…

Actual OEM Internet Mystery Shop Scoring IndexActual OEM Internet Mystery Shop Scoring Index

Nothing has more impact on results than Nothing has more impact on results than phone and/or SMS contact with the phone and/or SMS contact with the

customer!customer!

Outbound phone calls, ongoing phone and SMS follow-up and Outbound phone calls, ongoing phone and SMS follow-up and responding to emails requires adequate staffing and skill levelsresponding to emails requires adequate staffing and skill levels

Telephone ProcessTelephone Process

• 85% of Web visitors who contact the dealership before coming into the showroom, use the phone• Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios

Phone Follow-Up Sales Strategy:• Focus on having a set of objectives in front of us, each time we make an email follow-up call• Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response

• 85% of Web visitors who contact the dealership before coming into the showroom, use the phone• Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios

Phone Follow-Up Sales Strategy:• Focus on having a set of objectives in front of us, each time we make an email follow-up call• Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response

www.HireTheWinners.com/adm

Ralph PagliaCell: [email protected] www.RalphPaglia.com

Reference Links:http://www.ADMPC.com (AutomotiveDigitalMarketing.com)http://slideshare.net/RalphPaglia http://www.dealerELITE.nethttp://www.hirethewinners.com/adm

Questions and Answers…Questions and Answers…

Dmb paglia people-organizational development for business growth v3

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