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I was doing research for my next article when a mega dealer from the East coast called to ask me what I thought about them consolidating their Internet sales department.  I asked, “You mean you’re not consolidated yet?”

Consolidating your Internet operations is a definite must for all dealerships. Gnashing your teeth about the added overhead expense that could come from consolidating your department is not a healthy attitude to take.  Whatever you think you might lose in paying a professional to oversee your Internet operations, you most assuredly are losing in productivity. Most dealer groups, mega or other wise, have a fixed operations guru and an F&I guru; why not an Internet sales guru?  This person can be the key to generating the optimal performance for your Internet program.

Here is a “How To List” for Consolidating Your Internet Sales:
 

Sign a statement of commitment.

First, make all the managers in the group do a mind shift to get everyone on board.  This mandate must come from the dealer/owner.  Get the buy-in from all concerned and no lip service from anyone, period.  A doubting Thomas will bring you down faster than a Ford GT. Get them to sign a statement of commitment.  Seriously, no joking, all your work and investment will be destroyed if you have one manager talking smack behind the owners’ backs.

Choose a strong leader.

Second, choose a strong leader and manager to oversee your Internet operations.  Make them a part of the dealer group management team.  Do not make them the odd person out.  Moreover, ensure they report to the dealer/owner directly, or the CEO/COO.  Having them report to a GM or a GSM or any other manager will not be conducive to having a successful Internet sales department.  The intermediary will hamper productivity.  This person needs to report to the big boss.  Select a candidate with a strong car sales background.  Internet sales experience is important.  However, having good leadership skills is just as important as Internet selling experience.  What they may lack in Web sales experience they make up for with strong management skills. 

Use a lead management tool.

Third, initiate the use of one lead management tool (LMT) to consolidate all email leads from the dealer group websites, third party lead venders, and leads from OEM sites.  Keep close records to ensure each ISM responds immediately to all email leads.  Develop all the initial auto response emails and the additional follow-up email templates.  ISMs should personalize templates as they gain experience.  The LMT itself should be analyzed to gauge its effectiveness. If it isn’t up to par, try another one.  The best-case scenario is to have your LMT be part of your CRM tool (customer relationship management tool) that pulls from your DMS.  There are several great, all-in-one CRM/LMTs on the market today.

Develop a comprehensive Internet sales report.

Initiate a comprehensive Internet sales report that covers all aspects of monthly Internet sales. This report, at the least, should include the following:

• Departmental totals
• Sold comparisons
• Total gross comparisons
• All services and their gross totals
• Year-to-date ROI for difference lead sources
• Buying cycle analysis
• A break down of total store sales, including year-to-year comparisons
• A break down of individual ISM’s sales numbers, including: response times in minutes; CSI averages; gross analysis for front gross, back gross and total gross average; and commission analysis
• Wholesale broker numbers
• Graphs and charts to clearly demonstrate this data  

Get the whole team involved with your website.

Along with your Web master, the Internet sales director (or whatever you decide to call them), GMs, GSMs, and your service and parts director should play an active role in keeping your website content active and up-to-date. Regular updates should include information about: sales, service and parts specials; and special sales incentives including rebates, interest rates, etc.  Add community awareness initiatives to your website too.  And isolate vehicle “weekly specials” so they really stand out.

Optimize your site content for search engines – SEO, or search engine optimization. Coordinate with your website developer to get your dealer group websites on the first page of any search engine inquiry to each of the major search engines, i.e., Google, Yahoo, MSN, etc.

Establish an email newsletter that is sent out to all customers with an active email address.  Email addresses should be collected during service drives, at delivery centers, and by F&I managers.

Consolidate all e-commerce directives to include website initiatives, Internet sales leads, and special selling group sales.  The Internet sales director should analyze third party lead provider performance, negotiate, and consolidate third party lead contracts to get the maximum ROI. The same goes for website initiatives and coordinating with outside vendors – everything from selection, to negotiation, and management. At the end of the day, it’s about running the most efficient and effective Internet department to maximize sales and keep overall cost per lead and cost per sale low.

Hire an Internet sales guru.

Here are some rules of thumb for the Internet sales guru/director to follow:

Revitalize your Internet process, develop an email marketing program, and follow-up to sell more cars!

·         Develop best practices and email marketing processes.

·         Advise GMs and implement at store level.

·         Support, train, and manage the Internet team.

·         Work with the website developer to maximize your web presence per store. 

·         Increase lead generation and maximize sales.

Internet Sales Director Job Description

Here is a job description for an Internet sales director.  Customize it to fit your dealership’s needs.  This position is the cornerstone for consolidating and running an efficient Internet department.

JOB TITLE: Internet Sales Director

DEPARTMENT: Internet Sales Department

OBJECTIVE:  To be the#1 Internet sales department in the state, and one of the top 10 Internet sales groups in the US.

FUNCTIONS:

1.  Act as Internet sales director for the entire dealer group.

2.  Act as sales trainer for the dealer group Internet sales team.

3.  Act as primary point of contact between the Internet sales team and dealerships.

4.  Receive and work Internet leads as required.

5.  Maintain OEM sites as required.

RELATIONSHIPS:

·         Reports directly to the dealer principal

·         Supervises all dealer group Internet sales team and administrative assistant

·         Establish and maintain good-working relationships with dealership GMs, GSMs, sales representatives, office staff, service staff, and parts staff.

RESPONSIBILITIES AND AUTHORITY:

Customer Satisfaction

·         Establish, maintain, and monitor a consumer relations policy that insures complete customer satisfaction. 

·         Provide a customer record and follow-up system, resolve customer complaints, and build loyal clientele for the Internet sales team.

·         Set clear standards for customer treatment.

·         Build, train, and maintain a sales organization that is aware of customer needs. 

·         Insure that each Internet sales team manager is in the top 5% in CSI at the dealership(s) they represent.

Sales

·         Ensure profitability of the Internet sales team through the sale of new / used vehicles, finance and insurance, extended warranties, and after market products.

·         Attain a gross profit per unit average sold of $1,500 front gross / $750 back gross. 

·         Attain an extended warranties penetration of 25%.

·         Attain an Internet sales team closing ratio that reaches 35% on all Internet leads submitted.

·         Maintain and supervise the Internet sales team sales system that includes effective prospecting, demonstration, customer handling, closing, and delivery programs.

·         Maintain and control appraisal procedures in a fair and equitable manner that is consistent with the Internet sales team policy and in line with competitive practices.

·         Train all Internet sales team managers in the processes in leasing, lender approvals, rehashing deals, secondary finance, and sale of extended warranties.

·         Have each Internet sales team manager establish an evidence manual that includes, but is not limited to all extended warranty prices from all stores, rates, and residuals from the factory lending companies, primary leasing companies, and primary lenders.

·         Ensure each Internet sales team manager is certified at the respective dealership(s) that they represent.

·         Manage the administrative assistant’s duties in the most effective manner possible.

·         Assist Internet sales team managers in correct Internet lead responses as needed.

·         Increase Internet sales team proficiency to equal an average of X number of deals per month.

·         Sell to Internet leads and repeat and referral customers as needed.

Finance and Insurance

·         Ensure all deals are correctly done, including contracts, buyer’s orders, warranties, etc.

·         Train Internet sales team managers in all procedures that concern having a deal done correctly the first time.  (i.e. that all documents are prepared correctly)

·         Train as needed all Internet sales team managers in all matters that concern working with the DMS, working lease, finance payments, and overall computer skills.

Expense Control

Manage departmental expenses so maximum profit is earned monthly.

Personnel

·         Establish and maintain practices designed to train, develop, and motivate department employees.

·         Use personnel management systems that incorporates dealer group procedures and policies on recruiting, hiring, and orientation.

·         Use job classification work standards and job descriptions to monitor and measure individual employee effectiveness.  This information is to be fed back to the employee on a formal appraisal.

·         Maintain product information brochures, rate lists, residual books, factory incentive lists, bulletins, and manuals in a manner that is convenient to employees needing them, such as evidence manuals.

·         Have Internet sales team managers licensed at dealerships as appropriate.

Inventory Control

·         Ensure dealership website is updated on promotions page.

·         Maintain inventory control over all departmental equipment.

Inter-departmental Relations

·         Establish and maintain good-working relationships with dealership GMs, GSMs, sales representatives, office staff, service staff, and parts staff.

·         Resolve sales voucher discrepancies between dealership pay clerks and Internet sales team managers. 

·         Reduce conflict between dealership floor and Internet sales team to maximize profitability for both.

·         Prepare for and participate in Internet sales team meetings and meetings with management and other departments.

·         Attend all used car manager meetings.

·         Attend all dealer group operations meetings.

Housekeeping / Safety

·         Initiate house keeping, safety, and security procedures that result in a safe and attractive working environment.

ACCOUNTABILITY:

Performance standards for this position are met when:

·         Internet sales team vehicle sales meet monthly objectives established by the dealer group.

·         Internet sales team proficiency is equal to an average of 300 deals per month.

·         Internet sales team CSI is in the top 5% of every store.

·         Customer complaints are no more than two per month.

·         Repeat customers represent 50% of total sales per month.

·         Internet sales team closing ratio reaches 35% on Internet leads submitted.

·         Gross profit per unit average sold is $1,500 front gross / $750 back gross. 

·         Extended warranty penetration is 25%. 

·         Maintain 100% email response within 15 minutes for all Internet sales team managers. Enforce as required.

I, _____________ understand and acknowledge all requirements listed in my job description.

__________________________

Internet Sales Team Director