Course Objectives
Internet Sales Managers will learn how to:
• Match the type and intensity of follow-up to the customer’s buying characteristics
• Respond effectively to entice action
• Engage in creative follow-up
• Increase your appointment rate
• Effectively raise your closing ratio Dealer Management will learn how to:
• Develop an effective Internet Sales Department
• Align your dealership’s processes to meet your Internet customer’s expectations
The Internet Customer – Notepad Transcript
Why Do Customers Shop Online? Internet Growth Rate:
• Internet Shopping — 39.8% to 67.5% in 8 years
• 3.5% per year growth rate
• Soon nearly all Ups will be Internet Ups
Source: J.D. Power and Associates New Autoshopper.com StudySM (1999-2006) and Used
Autoshopper.com StudySM (1999-2006)
ABCs of Internet Growth:
A — Avoidance
• Removes the pressure
• Anonymity levels the playing fi eld
• Lets them negotiate on their own terms
• Isolates them from the uncomfortable “tension” of the deal
• Makes it easier to walk away — with the touch of the delete key
B — Best Price
• Hardcore shoppers believe the best prices are on the Internet
• Expanded competition drives prices down
• Profi t potential comparable to Showroom Ups
C — Convenience
• Traditional dealership experience requires a large block of time
• Internet allows the customer to break the process into smaller, more manageable chunks
• Shopping takes place at a time that’s convenient to the customer Customer Comparison
Profi t Potential:
Showroom Up:
• Higher vehicle price
• Higher potential for future service-oriented profi t
Internet Up:
• Spend more on F&I products
• Spend more on accessories
Reach
Showroom Up:
• Shop dealerships close to home or work fi rst
• Occasionally travel further for advertised deals
Internet Up:
• Always follow the deal
• Travel further to get it
• Low advertising costs Process:
Showroom Up:Consultative
• Meet & Greet
• Identify Wants and Needs
• Product Presentation
• Test Drive
• Pricing
• Negotiating and Closing
Internet Up:
• Vehicle Selection (Independent)
• Pricing and Availability
• Identify Wants and Needs
• Product Presentation
• Test Drive
• Negotiating and Closing Summary
3
The Internet customer is here to stay3
Why customers shop online• A — Avoid Pressure
• B — Best Price
• C — Convenience
3
They can be won over and cultivated into a loyal customer3
They shuffl e the traditional sales processInternet Inquiries
• Each inquiry is unique
• Include various levels of information
• Can arrive by the hundreds each month
• Treat every Internet lead as an opportunity Where do leads come from?
• Kia.com
• Dealer Website
• Third-party sources purchased independently Kia
• Kia.com “Build and Price” leads
• Third-party sources purchased by Kia
• iPower lead processing engine ensures the quality of the leads Dealer Websites
Your dealer site must be:
• Information rich
• Allow customers to build and request a price
• Contact information
• Easily navigated
• Fast loading
• Professional appearance Third Party
• Valuable tool for both customers and dealers
• High user-purchase rate of approximately 60%*
• Aggressive dealers can purchase additional lead sources from Kia
*Source: Jim Leman, Strategies for Success (7/30/07)
We’ve got all these leads… now what?
• Corral, distribute and provide a process
• Only half of the dealers have a process in place
3 Keys to Effective Internet Lead Responses: Make sure it’s Relevant
• Needs to avoid the delete button
• Needs to be right on the mark
• The subject line should refl ect their request
• Avoid unrelated text in the subject line Make sure it’s Correct
• Use proper grammar and avoid slang
• Use an aesthetically pleasing layout
• Proof your email before sending it
• Have a fresh set of eyes review it Make sure it’s Timely
• Best Practice #3 — Respond quickly 24/7
• Ideally, respond personally within 60 minutes
• Worst case, respond within 24 hours
• Closing chances drop by 50% after 24 hours
• Don’t rely solely on third-party Auto Responders Barriers to Timeliness:
24/7 Shopping
Barrier: Internet customers are online 24/7; dealerships are not. Solution:
• Off Hours — Set up an Auto-Responder
• Business Hours — Answer inquiries personally whenever possible Stretched Staff
Barrier: Many dealerships only have one or two employees handling Internet leads. Often they double as fl oor consultants during peak times.
Solution:
• Dedicated Internet Sales Manager controls and distribute leads
• Large Dealerships — Staff a dedicated Internet Department
2 Key Ingredients of an Effective Internet Auto Response: Build Value
• Reinforce, “Yes I can help you!”
• Tell your dealership’s unique story: - Process
- Financing - Hours
- Etc.
Call to Action
• Inform the customer of both your and their next steps
• Include contact information
• Invite customer to contact you if they have questions Model Auto Responder:
Subject Line
Subject should respond to their inquiry and contain the dealership name. Dealership Logo
Position your dealership’s logo and contact information at the top of the email. Customer Name and Salutation
• Include the customer’s name in the salutation
• Use your CRM tools to enter customer’s name into your message automatically Answer Their Question(s)
• Most common inquiries — Price and Availability
• Reassure your customer that you’re prepared to satisfy both Build Value
• Tell your dealership’s unique story
• Reinforce that there are more reasons to buy than just price Next Steps
• Don’t leave your customer wondering
• Identify what they should expect from your department and when
• Make sure you deliver on your promise
Business Hours
• Let customers know when you’re open
• Qualify when they should expect a response Call to Action
• Include contact information
• Invite the customer to contact you at any time if they have questions Generic Sign-Off
• Avoid confusion, do not personalize your sign-off
• Sign it from the Internet Sales Department Build Your Own Auto Responder
• Key Principle: Keep it Generic
• Remember – a single Auto Response must work for all of your inquiries
Best Practice #4
Provide the information the prospect requests.
• Provide the information the prospect requests — including price
• Explain the value of doing business with you and your dealership What Customers Expect:
Price and Availability
• Top the list
• 85 to 95% of all inquiries
Source: Based on Industry Research
Not just price — the best price
• Most Internet leads cross-shop 3-5 dealerships, including other manufacturers
Source: Auto Rich, Inc.
“Take me seriously”
• Assume that every lead will buy or lease — today or in the future Specifi c Answers
• Be general in Auto Responder
• Be specifi c in Personal Response Quick Responses
• Respond in 60 minutes — or less
• Proven benchmark The Right Vehicle
• Your product expertise is required
• Be a consultant not simply an “order taker”
• Helps ensure long-term customer satisfaction The License to Hunt Myth: Exposed
• Providing a price keeps you in the hunt
• Distinguish yourself for the right reasons — not as the only dealer who didn’t include a price
• Extend the reach of your dealership over a greater distance
Best Practices for Establishing Pricing
• Share pricing between sales departments
• E-Mystery Shopping
• Sweet Spot
• Discount Pricing E-Mystery Shopping
• Shop your competition
• Compare your price and process
• Make sure you’re the best in the market
• Investigate non Kia competition as well Best Practice #5
When You Provide Pricing, Aim for the Sweet Spot
• Evading the price issue will not give you the edge
• Evaluate past Internet sales
• Identify average profi t margin
• Apply margin to new leads
• Lower profi t margins are offset by lower advertising costs Discount Pricing
• Common practice among automotive manufacturers
• Establish a set discount relative to the MSRP or invoice price
• Choose a discount that makes sense to your customer
• Traditional customers work south from sticker
• Internet customers tend to start at invoice price Top 10 Best Practice #1
Allow the entire process to take place “virtually.”
• Many customers will prefer keeping the deal online rather than in-dealership at this point
• Another way to differentiate your dealership from the competition Appraisal Truths:
1. Where the customer lives has an impact on trade-in value.
Vehicles fl uctuate in value depending on what area of the country — or even town you live.
2. Mileage is the top factor when determining value.
• Lenders use mileage to gauge the amount of life a vehicle has left
• Retail life of a vehicle is 100K miles
• Retail price new (multiplied by) Miles Under 100K (expressed as a percent) = value
• After 100K, bank fi nancing is not readily available and the value goes down exponentially
3. The time of year can impact value.
• SUVs are always valued highest in Fall
• Convertibles and sports cars are typically valued higher in Spring 4. Current incentives on new vehicles will impact values.
New car incentives will drive down trade-in values. Third-party Appraisal Services
• Include a comprehensive questionnaire
• Provide an estimate of value
• Estimate is typically higher than market value
• Have a system ready to create a more realistic value
• Emailable appraisal questionnaire
• Kbb.com — Retail
• Blackbookonline.com — Wholesale
• If you offer a trade-in value worksheet, clearly communicate that it is a ballpark price, subject to inspection
Formulating a Personal Response Key Ingredients:
• Answer the Question - Price and Availability
• Build Value
- Lease Specials - Discounted Vehicles - Demo Models
- Previous Year Sell-Downs
- Make sure value-added offers have a logical connection to the customer’s original inquiry
• Call to Action
- Vary based on place in the process — request information, set an appointment…
• Auto Response = General
• Personal Response = Specifi c Top 10 List
Best Practice #2
Provide your prospect “choices” on how the communications will progress.
• Conduct the entire process on line?
• Talk to you on the phone?
• Visit the dealership?
• Let the customer choose the path
• Proceed at their pace
The Anatomy of a Personal Response: Available
Subject Line: Your Kia Sorento EX is Available at ABC Kia
Salutation: Dear Mr. Jones:
Recap & Highlights: Great news! The 2007 Kia Sorento EX 2x4 in Ice Blue Metallic with gray leather interior and a sunroof you selected is available. You have selected an excellent vehicle that features a 262 horsepower V6, NHTSA’s 5-star crash rating, a premium stereo with AM/FM/CD/MP3 and 10 speakers and a long list of other standard features.
MSRP: The MSRP on that vehicle is $25,795, but our current price is currently at $21,944 (including a $2,500 rebate) for the vehicle you selected.
Build Value: Lastly, based on the vehicle and package you selected, you may be interested in some of the following vehicles we have specials on right now:
Fulfi lling Requests – Notepad Transcript
Year Vehicle Trim Level
Exterior Color/ Interior Color
MSRP Price to Own 2008 Kia Sorento EX 4x4 Ebony Black/Gray $26,895 $23,044 2008 Kia Sorento EX 4x2 Midnight Blue
Metallic/Gray
This quote is based on the information you provided. We would be able to save you even more money depending on how you plan to use your vehicle and how you would like it equipped. Please let me know if you’re interested and I can explain more.
Call to Action: I can answer any questions you have either at [email protected] or over the phone at 1-888-555-6789. Please don’t hesitate to contact me at your convenience to visit our showroom and take the Sorento for a spin. Can we offer you an appointment on Tuesday or Thursday afternoon?
Sincerely,
Jason Leeds
Internet Sales Manager, ABC Kia 1-888-555-6789
How to Respond to Complex Requests: Inventory not available
• Provide the price for the requested vehicle
• Be certain you can get the model and trim if you tell them you can
• Offer value-added alternatives to their requests
• Provide alternative cost-saving specials Need More Information
• Don’t take a “stab” at providing a price quote unless you have the required information
• Provide a list of specifi c information needed
• Explain how this will allow you to “provide the best possible quote”
• Tell them when they can expect a quote…“once I get this information, I’ll get back to you within the hour”
• Use this opportunity to ask if other models/trims/colors are acceptable
Top 10 List
Best Practice #6 — Cater to Your Customer’s Needs
• Ensures the best possible vehicle for your customer
• Determines the best possible payment terms
• Dictates intensity and frequency of follow-up strategy Assessing Needs:
Need to Know:
• What equipment must be on your next vehicle?
• Do you have a trade?
• Who will be the primary driver of your new vehicle?
• Approximate miles driven per year?
• Are you considering leasing?
• If available, would you consider a similar vehicle, similarly equipped if you could save yourself considerable money?
Nice to Know:
• Did you purchase your last vehicle new or used?
• What equipment would you like to have on your next vehicle?
• When is your next payment due?
• How much was your last payment?
• How much do you want your next vehicle’s payment to be?
• What price/payment was your present vehicle when you purchased it? Follow-Up Basics
• Takes place after you’ve determined if and when your Internet customer plans to purchase
• Average Internet shopper buys between 30-60 days after the initial inquiry
• Most take over a month to commit
• The less expensive a vehicle is, the quicker the sale
• Follow-up process should include a variety of scenarios
Source: Based on Industry Research
Follow-Up Techniques
• Continue with email communications
• Instant Messaging
• Telephone
Follow-up Frequency
• Assume that your customer is ready to buy — unless they say otherwise
• Utilize CRM systems for regular prompts to follow up
• Follow up regularly until they buy or they die Kick-Starting a Stalled Sale
• Just like a car, get it going ASAP
• Follow-up methods reestablish momentum
• There’s a good chance your customer is still in the buying game Useful Tips for Kick-Starting a Stalled Sale
• Offer discounted or demo models that are available
• Mention “closeout” sales
• Send new model announcements
• Introduce incentive changes
• Send an e-letter
• Provide service or accessory incentives Preparing to Make the Appointment
• Ultimate goal — sell a vehicle
• Immediate goal — set an appointment for a showroom visit
• Visit increases the odds of making the sale
• Closing odds increase dramatically — 78% of those who look, buy (NADA)
• Kia closing rates after a dealer visit are among the best in the industry — that’s “the Power to Surprise”
Time to Make the Appointment
• Make sure the customer is ready
• Get the customer on the phone
• Once on the phone, the right skills will help you set the appointment
Making the Call
• Differentiate yourself from the competition
• Examples:
- 1st oil change free - Tire rotations for life - Loyalty card
- Loaner cars - Service discounts - Rebates
- Rate subvention programs - Referral programs
• If you leave a message, think it through thoroughly beforehand
• Focus exclusively on setting the appointment for now — not the sale
Defi nition: Stall.
A “stall” to a potential sale is a non-specifi c reason not to move forward in the sales process.
Defi nition: Objection.
An “objection” to a potential sale is a specifi c reason not to move forward in the sales process.
Defi nition: Condition.
A “condition” to a potential sale is a circumstance beyond the control of an Internet sales manager.
Common Internet Customer Roadblocks: Objections
The price is too high The payment is too much Not enough for my trade
I can’t put that much money down Stalls
Need to talk to my spouse Need to think about it Need to price shop
Don’t want to come to the store Don’t want to talk over the phone Okay, thanks for getting back to me Conditions
Waiting for tax return Waiting to clear bankruptcy
Waiting for the end-of-the-model year specials Handling Conditions
• Conditions require empowered decisions that are seldom within the realm of an Internet Sales Manager’s responsibility
• In many cases, you’ll have to get the sales management involved
Resolving Stalls and Uncovering True Objections: Stall Resolution Formula
1. Empathize 2. Clarify
3. Uncover the Objection 4. Close the Appointment
1.Empathize: The most important thing you can do to gain your customer’s trust…and his sale.
• Customers want to feel you understand their concerns
• Customers will buy from someone who empathizes with their specifi c needs
2. Clarify: Once you’ve identifi ed the stall, reinforce the fact that this is all that stands in the way of a sale.
3. Uncover the Objection:
• Present the customer with the 4 main customer concerns
• Find out if there is an underlying objection Uncover the Objection Next Steps
• Continue the correspondence
• Smoke out the real objection
• Use a Justifi cation Worksheet
4. Close the Appointment: End your email or conversation in a way that implies an appointment is the customary thing to do.
Negotiating:
Best Practice #7 – Create an Internet Negotiation Process
• Transfer proven showroom techniques to the Internet
• Process should include price, trade, payment and lease terms First Rule of Email Negotiation
Avoid Silly Errors in Correspondence
• Spelling
• Grammar
• Spacing
Online Objection Justifi cation Worksheets 4 common online customer objections:
1. I need more for my trade 2. The price is too high
3. The payment is too high (I want to stay at $XXX/month) 4. I cannot put that much cash down
Effective Closes
• Alternative Choice Close
• Best Looking Vehicle Close
• Accessory Close
Introduction
You will be judged by your ability to set the appointment:
• By phone
• By email
Choice of words is crucial to your overall success. Words to Avoid: • Dealership • Test Drive • Sell • Contract • Signature • Payment • Cash • Salesperson
“Dealership” = Negative connotations surrounding car dealers and traditional car sales
“Showroom” = Emphasis on product, which is what the customer is looking to purchase
“Test Drive” = Traditional “dealership” lingo; something a customer wants to avoid
“Spin” = An exciting event; less formal and more enjoyable Choose your words carefully!
• Review every email you send
• Avoid negative words
• Avoid salesperson clichés Phone Skills:
Your challenge:
Formulate responses that provide value and reassurance
Best Practice #8 – Apply the same principles should the communications shift to the phone
• Provide information the customer desires
• Provide “sweet spot” pricing
• Proceed at their pace
• Negotiate over phone if customer wishes Identifying what Callers Want
1. They want to ask questions and get answers 2. They want to start the process of elimination
3. They are trying to be as dispassionate as possible; in other words, they are trying to be responsible and do their research before coming in to pick out a car
4. They are trying to save time
A salesperson builds rapport by answering the caller’s questions Inbound Phone Calls:
The Straight Talking Formula to Making More Appointments 1. Answer any questions your prospect asks
2. Don’t answer if it’s not asked
3. Use “permission” to better control the call and transition to the appointment
1. Answer any questions your prospect asks
• Withholding answers to a caller’s questions won’t bring her into the store
• “Talk straight” and avoid “clarifying” questions
• The answer you give is less important than the fact that you give one 2. Don’t answer if it’s not asked
• Don’t volunteer specifi c information your prospect hasn’t asked for
• But remember, don’t block, evade or withhold
3. Use “permission” to better control the call and transition to the appointment
• By answering their questions, they’ll be more willing to permit you to ask them questions of your own
• Ask permission later, rather than sooner
Outbound Phone Calls:
5 Best Outbound Phone Practices 1. Be Persistent
2. Make the call short and to the point
3. Ask for an appointment, multiple times if necessary 4. Ask questions regarding the vehicle, if necessary 5. Be prepared to answer your prospect’s questions Overcoming Objections in the Outbound Call:
• Transition to the Stall Resolution Formula
• Work toward the Objectives of the Outbound Call Outbound Phone Call Messages
• The Obvious Message
• The Sublime Message
• The Differentiator Message The Obvious Message
• Name
• Store name
• Contact numbers
• Email address
The Sublime Message
• Use the right words (showroom vs. dealership) The Differentiator Message
Mention an incentive:
• 1st oil change free
• Tires for life
• A loyalty card
• Loaner cars
• Service discounts
• Rebates
• Rate subvention programs
• Referral programs
