Dmb paglia people-organizational development for business growth v3
1. 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.
2. Courtesy Chevrolet in Phoenix, AZ became
the USA’s leading Internet retailer of new
and certified used Chevrolet vehicles…
Human Resource Development was the key
3. Organizational Development for Business
Growth and Increased Profits
• 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.
4.
5. Create a Video that showcases why People
want to Work for Your Dealership
• Training
• Compensation
• Benefits
• Supportive Team
• People Matter
• Career Growth
6. 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
7.
8.
9.
10.
11. Hire The Winners Assessment: and Assessment Example
Hire The Winners Report Accurate Results in 20 Minutes
13. Growing Your Team’s Capabilities Allows
Dealers to Feel More Confident about Online
Ads
100,000
Courtesy Chevrolet Monthly Web Traffic; Nov. 2005 through Jan. 2007
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
BZ Results site Cobalt GM PowerShift Site Reynolds Spanish Site SEO/SEM Driven Micro-Sites
AZ Central-Chevy Site ClickMotive SEM Sites Other Sites
14. 61,642 Leads Generated and Tracked within CRM System
Courtesy Chevrolet Lead Volume
by Broad Category Source Type
CRM & Non-Web Generated SEM/SEO Generated Leads
Leads 14,792
18,738 24%
31%
Third Party Sourced Leads
26,095
42%
GM Provided Leads
1,997
3%
SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
15. Growing Your Staff using Large Quantities of
Leads will Generate Higher Volumes of Sales
4,008 eBusiness Department Sales of New & Used Vehicles in a single year
Segmented by Marketing Category (Total Store Sales >11,000)
Unit Sales Volume by Lead Source Category
CRM & BDC Recycled SEM/SEO Generated Leads
Web Generated Leads 1,075
1,695 27%
42%
Third Party Sourced Leads
GM Provided Leads
989
249
25%
6%
SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
16. Growing Your Staff using Large Quantities of
Leads will Result in Closing Ratio Variations
Sales/Lead Closing Ratios ranged from 5.15% to 16.64% when
18.00%
segmented into categories based on Marketing Type
16.64%
16.00%
14.00%
11.76%
12.00%
9.93%
10.00%
8.00%
6.00%
5.15%
4.00%
2.00%
0.00%
SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
Total
Lead Source Working Completed Invalid Leads Sold Leads
Leads
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%
17. 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 Drive TRAFFIC to an INTERACTIVE web site that generates leads that flow into
Goal dealer’s PROCESS engine which converts them into SALES.
Convert Internet leads into showroom visitors that buy cars
Tactical Use a predefined and consistently executed inquiry response process,
Objectives 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 expectations
2. 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 minutes
4. Schedule showroom visit & test drive appointment
5. 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
18. Creating Process Execution Capabilities
Drives Staffing Requirements
No dealership has unlimited process
execution capabilities…
19. Growing Your Sales Team Requires that you Define
what Your Lead Response Process Should Look Like
Inbound Internet Lead Management Process
Dealer Lead
Dealer Lead
Management
Management
Process Map
Process Map
20. Growing Your Sales Team works best when it
occurs “Organically” and is Specialized
Organic Growth: Specialization = Scalability
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:
1. New Chevrolet BDC 5. New Chevrolet Internet Sales
2. Used Car BDC 6. Used Car Internet Sales
3. Wholesale Parts BDC 7. Bell Road Internet Sales
4. eFinance Sales Team 8. Commercial Internet Sales
Let’s Take a Look at How It Happens…
21. eBusiness Teams – Phase 1
Ralph Paglia
Ralph Paglia
Mike Gordon
IT Director Begins at Courtesy
Begins at Courtesy
as eBusiness Director
as eBusiness Director
BDC Manager
BDC Manager Internet Sales Manager
Internet Sales Manager
New & Used
New & Used New & Used
New & Used
Vehicle Sales Dept.
Vehicle Sales Dept. Vehicle Sales Dept.
Vehicle Sales Dept.
CSR CSR CSR CSR CSR CSR CSR CSR
CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS
ISS ISS ISS ISS ISS ISS ISS ISS
1
1 2
2 3
3 4
4 5
5 6
6 7
7 8
8 11 22 33 44 55 66 77 88
Phase 1 Sales Results:
Internet sales averaged 88 units per month (new & used)
BDC generated sales averaged 92 units per month (new & used)
22. eBusiness Teams – Phase 2
Ralph Paglia
Ralph Paglia
CRM/eBusiness
CRM/eBusiness
Mike Gordon
IT Director
Director
Director
Joel Matteson
Joel Matteson
George Salman
George Salman
BDC Manager
BDC Manager
Internet Sales Manager
Internet Sales Manager
New Vehicle Sales
New Vehicle Sales
New Vehicle Sales
New Vehicle Sales
S
p
lit 80 sales 70 sales
Slit
p
&
G
rw
o & ISS ISS ISS ISS ISS ISS ISS ISS
ISS ISS ISS ISS ISS ISS ISS ISS
CSR CSR CSR CSR CSR CSR CSR CSR
CSR CSR CSR CSR CSR CSR CSR CSR Gw
ro 11 22 33 44 55 66 77 88
1
1 2
2 3
3 4
4 5
5 6
6 7
7 8
8
Francisco Abalos
Francisco Abalos 40 sales
BDC Manager
BDC Manager Bryan Long
Bryan Long
Used Vehicle Sales
Used Vehicle Sales Internet Sales Manager
Internet Sales Manager
on
Po N e w
siitt w
io
Used Vehicle Sales
Used Vehicle Sales
Po N
iio n
on
P o Ne w
siitt w
s
CSR CSR CSR CSR
40 sales
P Ne
9 10 11 12
s
ISS ISS ISS ISS
ISS ISS ISS ISS
99 10
10 11
11 12
12
Kelly Slaughter & Lisa Sarata
Kelly Slaughter & Lisa Sarata
CRM Administrators
CRM Administrators •Phase 2 Team Expansion:
Phase 2 Team Expansion:
Internet split into new and used managed teams
Internet split into new and used managed teams
New
New BDC split into new and used managed teams
BDC split into new and used managed teams
Position
Position CRM administrative position added (showroom)
CRM administrative position added (showroom)
23. eBusiness Teams – Phase 3
Ralph Paglia
Ralph Paglia
Mike Gordon
IT Director
CRM/eBusiness Director
CRM/eBusiness Director
Joel Matteson
Joel Matteson George Salman
George Salman
BDC Manager
BDC Manager Internet Sales Manager
Internet Sales Manager
New Vehicle Sales
New Vehicle Sales 100 sales 90 sales New Vehicle Sales
New Vehicle Sales
CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS
ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS
CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR
1 2 3 4 5 6 7 8 9 10 11 22 33 44 55 66 77 88 99 10
10
1 2 3 4 5 6 7 8 9 10
Francisco Abalos Bryan Long
Bryan Long
Francisco Abalos
BDC Manager Internet Sales Manager
Internet Sales Manager
BDC Manager
Used Vehicle Sales
Used Vehicle Sales 60 sales 50 sales Used Vehicle Sales
Used Vehicle Sales
CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS
ISS ISS ISS ISS ISS ISS
11 12 13 14 15 16 11
11 12
12 13
13 14 15 16
14 15 16
Patrick Miller
Patrick Miller New
Courtney Daly
Courtney Daly Ron Daly & Scott Daly
Ron Daly & Scott Daly Internet Sales Manager
New
Internet Sales Manager Position
eFinance Admin.
eFinance Admin. Special eFinance Team
Special eFinance Team Nw Position
e
N
w
e Courtesy On Bell
Courtesy On Bell
35 sales Ta
em
Ta
em 25 sales
Lisa Esquivez
Lisa Esquivez Omara Spriggs
Omara Spriggs Designated Sales Consultants
eFinance BDC
eFinance BDC efinance Sales
efinance Sales Certified to Handle
Internet Lead Appointments
•Phase 3 Team Expansion:
Phase 3 Team Expansion:
Kelly Slaughter & Cecy Girod
Kelly Slaughter & Cecy Girod Special eFinance team
Special eFinance team
CRM Administrators
CRM Administrators Courtesy-on-Bell ISM
Courtesy-on-Bell ISM
26. Dynamically Accurate Job Descriptions
and Clearly Defined Pay Plans
Clearly defined job descriptions that include minimum levels of performance, as
Clearly defined job descriptions that include minimum levels of performance, as
well as what measurements and levels will be determined as “superior”
well as what measurements and levels will be determined as “superior”
performance may be the single greatest missing ingredient in dealership
performance may be the single greatest missing ingredient in dealership
management execution today…
management execution today…
“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
39. Lead Volume puts pressure on response times
Lead Volume puts pressure on response times
as aafactor of staffing levels!
as factor of staffing levels!
40. Staffing and Organizational Structure Determines
Process Execution Capabilities and Monitoring
% of
Purchase Statistical
Top 4 Ways
to Close Dealer Response Attributes Respondents*
Purchase* Correlation
among the Factor of
who DID
More Sales Experienced by Customers within NOT
Leads who Response
attribute
to Leads DID
Received 24 hours of Submitting an Inquiry experience
the attribute
Experience with Vehicle
Purchase
the attribute
Make Direct Phone Contact with Customer
#1 (after sending Email w/availability & prices) 17% 27% 11
#2 Send Price Quotes by Email to Customer 20% 27% 9
Contact Customer more than once by Email
#3 and Telephone (within First 24 Hours) 21% 25% 5
#4 Make sure Customers are either Completely or
Very Satisfied with the Lead Response 21% 24% 3
*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
41. Staffing and Organizational Structure Determines
Process Execution Capabilities and Monitoring
Customer goes online
and submits Lead
Internet Sales Specialist ISS)
reviews lead, selects 4
vehicles for Price Quotes
Sends email with Quotes & Cars
BDC Staff makes initial phone call,
collects customer info, sets up an
appointment for the ISS
If no appointment, ISS
Contacts customer and seeks
appointment and/or agreement
42. Lead Process Maps should
be indexed to email
templates, phone scripts
and word tracks so that
dealership employees have
a “paint by numbers” guide
to what is expected when a
lead is received. This
process map focuses on
the first 12 hours after a
new lead is received.
43. Lead Process Maps should
contain brief explanations
for the logic and execution
tips for employees to review
before actually using the
email templates, phone
scripts and word tracks.
Actual template illustrations
make it easy for dealership
employees to recognize the
right template or document
when they see it in their
CRM tool.
44. When Lead Process Maps are
indexed to correspondingly
numbered email templates,
phone scripts and word tracks,
the dealership is far more likely to
execute the repetitious tasks that
create customer experiences
which correlate with higher sales
closing ratios. The best process
maps break down email and
phone contact processes into
separate flows so that they can
be executed by different
resources when scaling up lead
volumes and organization
structures.
45. Have a defined process for “closing out” unsold leads
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
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
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 days
46. Actual OEM Internet Mystery Shop Scoring Index
LMP Scoring Index
Objective Review of
Dealership Employee Lead
responses encourages
consistency and creates a
numeric accountability – an
LMP Report Card for Dealer or
GM review…
47. Nothing has more impact on results than
phone and/or SMS contact with the
customer!
Outbound phone calls, ongoing phone and SMS follow-up and
responding to emails requires adequate staffing and skill levels
48. Telephone 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
Average monthly sales total for the combined Internet Sales and BDC teams was 180 vehicles per month…
Split both the BDC and Internet Sales Teams from 2 to 4 managed profit centers, and increased BDC rep’s from 8 to 12, increased ISS’s from 8 to 12… Average monthly sales total for the combined Internet Sales and BDC teams rose to 220 vehicles per month… Added CRM Administration Staff of 2, and moved telephone switchboard receptionists to 2 nd floor and off of the showroom floor. CRM admin staff funded with money previously used for outside vendor’s unsold showroom follow-up USPS direct mail program and newly structured Lead Quality Program that tracks invalid leads and credits for those invalid leads from 3 rd Party Lead Providers.
Added Special eFinance Team to handle online credit applications (720 received in July 2006 with 44 sales generated at $116,000 in gross profits), Added a Courtesy on Bell Road satellite store Internet Sales Manager to handle eLeads and set up appointments for sales staff… The Courtesy Chevrolet CRM/eBusiness Teams combined sales objectives & monthly capacity rose to 360+ CRM/eBusiness Facilitated Vehicle Sales per Month…
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Pay plans should be progressive in a manner that creates extra rewards for deals sold at the beginning of the month, based on selling incremental units during the second half of the month. Performance bonuses based on process evaluation metrics should have minimum lead volume qualifiers to ensure that those who take on more leads than others are not penalized for handling extra work load.
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Pay plans should be progressive in a manner that creates extra rewards for deals sold at the beginning of the month, based on selling incremental units during the second half of the month. Performance bonuses based on process evaluation metrics should have minimum lead volume qualifiers to ensure that those who take on more leads than others are not penalized for handling extra work load.
Pay plans should be progressive in a manner that creates extra rewards for deals sold at the beginning of the month, based on selling incremental units during the second half of the month. Performance bonuses based on process evaluation metrics should have minimum lead volume qualifiers to ensure that those who take on more leads than others are not penalized for handling extra work load.
Pay plans should be progressive in a manner that creates extra rewards for deals sold at the beginning of the month, based on selling incremental units during the second half of the month. Performance bonuses based on process evaluation metrics should have minimum lead volume qualifiers to ensure that those who take on more leads than others are not penalized for handling extra work load.
Amongst all the attributes of a dealer’s response to an Internet Lead, the time from when a customer submits a lead to when they have received a personalized email message that directly addresses their inquiry consistently shows up as correlating with sales closing ratios… All response content equal, faster dealers will outsell slower dealers. However, Content is still King in that a poor response sent quickly will reduce sales closing rates. It is important to realize that lead response time is a qualifier, an index that determines maximum closing rate upper limits. Once again, it is what the customer experiences, not how or who does it that determines the results.
Lead Management Process is no longer as much an art as it has become a science… Numerous studies that utilize an OEM database matching process which tracks leads and the eventual Retail Delivery Report, then correlates sales for the brand, sales by the original lead receiving dealer, with significantly large volumes of customer submitted survey responses provide a clear and objective analysis of what the customer experiences, the differences in those experiences and their correlation with likelihood of purchasing from the dealer that received the lead. This ability to actually measure what each dealer does with their leads, through the eyes of the customer, and how these activities correspond with a sale, or a lost sale, allow a scientific management approach to Lead Management Process in a manner that absolutely WILL impact sales results from a given volume of leads.
Here is a simplified illustration of what happens at Courtesy Chevrolet in Phoenix when a new lead is received from a customer requesting a price quote on either a vehicle in stock or one that the customer has configured. Although Courtesy is fairly unique in that a BDC supports each Internet Sales Specialist with telephone follow-up, it is important to understand that this is actually a compromise in the store’s original LMP so as to enable the scalability to handling monthly lead volumes that frequently exceed 6,000 leads in a month, and over 60,000 leads a year… It is important to understand that achieving the customer experiences that impact sales closing ratios in a positive manner is a more important objective than who actually completes the tasks associated with those experiences… The customers are less concerned with who provides them with good service, than they are in actually receiving it!