Blueprinting a High-Functioning (and Profitable) Internet Dealership... NOT a Department (Part ONE - Infrastructure & Ecosystem Philosophy of a Synergistic Internet Dealership

Sean V. Bradley, CSP
“Blueprinting a High-Functioning (and Profitable) Internet Dealership…” NOT a Department -- The Science
Behind Building/Refining Your Sales Ecosystem, and the Step-by-Step Plan to Engineer Excellence
President & Founder I Dealer Synergy I seanb@dealersynergy.com
Part 1: Infrastructure & Ecosystem Philosophy of a Synergistic Internet Dealership

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About Me
● Over 19 Years in the Automotive Industry
● President & Founder of Dealer Synergy
● Averaged 30+ Units per month
● Delivered 110 Units per month Online in
2002
● 31,000 Automotive Sales Professionals,
Managers, and Owners trained
● 1,200 Rooftops trained
● Best-Selling Author of “Win the Game of
Googleopoly”

About Me

Thesis Statement
The Internet and Phones are
the NEW Showroom!

Dealers Must CHANGE
Change Their Paradigm

Dealers Must CHANGE
Change The Way They Allocate Resources
Human Resources / Staff
Marketing Budget

Dealers Must CHANGE
Change The Way They Recruit / Hire

Dealers Must CHANGE
Change The Way They Train Their Team

Dealers Must CHANGE
Change The Way They Utilize:
Products
Resources
Technology
Vendors

Dealers Must CHANGE
Change The Way They Communicate With
Prospects / Clients

Dealers Must CHANGE
Change Their Follow Up Process

Dealers Must CHANGE
Change Their Engagement Process

Current Situation Analysis
85%of ALL Transactions START on search…

92-99%of Americans go online before they step
foot into a Dealership.

The Average Internet Prospect visits up to
different websites and/or Dealerships before
they ever go in person.

The Average “In Market” Buyer ONLY visits
Dealerships.

Bottom Line…
If you get them to your Dealership,
unless something goes wrong at the
Dealership or they are NOT
qualified...they are getting SPOTTED.

The TOP 7 Reasons
“Why People Go Online or Call in as a Phone Up”
P.
R.
A.
C.
T.
I.
C.
E.
- Practice
- Research
- Availability
- Convenience
- Trade
- “I Hate Car Salesman”
- Credit
- Everything Else

Current Communication Metrics and Reality
Outbound Phone Calls
connect at an 11-14%
Connection Ratio.

Emails
have an average 2-4% Read-Open Ratio.

96% of
Text Messages
get read.

The Majority of Dealerships do NOT utilize powerful forms
of communication consistently or at all:
Video Email / Video Text Messaging
Apple FaceTime / Skype
Social Media Direct Messaging “DMs”

Video Enhances ALL
Forms of Communication:
Just adding “Video” in an email subject line increases read-open rates
by 19%.
Video in an Email (Video Email) increases read-open rates by up to
300%.
Video in Text (Video Text Messaging) gets read up to 99% of the time.
1 Minute of Video is equivalent to 1.8 Million Written Words.

Majority of Dealerships do NOT Articulate their
Value Package Proposition
(Why Buy From Us? Message)

Current Dealership / Sales Consultant Profile
The Average Dealership delivers
96 Units
per Month.

The Average Dealerships’ Average Cost Per
Sale in Advertising is
$640
per Car Sold

The Average Dealership has:
10 Sales Consultants
2 Sales Managers
A General Manager and/or a
General Sales Manager
An F&I Manager

The Average Dealership Invests
LESS Than $1,000 per month
in Training.
Less than $100 per Sales Person per Month in Training and less than $10 per
Car Sold per Month.
The Average Dealership has a 70%+ Attrition Ratio on the Showroom Floor.

The Difference Between an Internet Department and a “BDC…”
Internet Sales
Phone Sales
Unsold Showroom Follow-Up
Data Mining
Equity Mining
Lease Retention
Service BDC
Service Conversions
OEM Campaigns
Buy Backs
Cross-Promotional Marketing
CSI
A BDC...

of BDCs are
Broken or Not Profitable

The BEST Way to Build a “BDC” is with a Solid Foundation
Internet Sales
Phone Sales
After those are in rhythm then roll out the next module
and then the next, etc.

Current Challenges in the Average Dealership
There is a disconnect between the
“Internet / BDC” and the “Showroom”
Departments.
Most Dealerships are NOT Set Up Correctly.
Dealerships react to leads / opportunity rather than set up a Proactive Strategy.
There is not an appropriate allocation for resources (both money or staff).

Turnover is High
at the Dealership.

CRM is NOT Utilized Correctly
or held Accountable.
CRM data is compromised and not dependable.

Sales Consultants are NOT Productive.
They utilize ONLY 2-3 of the 8 Potential Ways to Sell an Automobile.
They are not able to truly provide the right amount of follow up needed for Internet Prospects.
They also do not utilize all of the different ways to communicate with prospects.
This leads to missed opportunities and “Bought Elsewheres.”
They usually catch the “Low Hanging Fruit.”
Sales Consultants are NOT given the proper training and resources for selling in 2018
We assume they know everything. We expect them to just magically be able to do everything and do it commission based…with
no money upfront!
They are NOT versed in CRM.
They do NOT work synergistically with the Internet Sales Department.

Internet Sales Coordinators / BDC Reps
There usually isn’t enough of them.
They usually do not have the right schedule.
They don’t have the right pay plan.
They are doing too many things and spread
too thin. “A Jack of all Trades and a
Master of None.”
There really isn’t a strategy.
Very little to no training.
Not really included into the same resources and
information as the Showroom Sales team.
Second rate citizen...they are not as important as
Showroom or Showroom Sales Consultants
No real time “T.O.s”

Examples of Dealers Being “Upside Down”
Ford Dealership
300 Cars a Month
27 Salespeople Generating 111 units from Phone/Internet Department
189 Remaining Units from the Showroom
27 Salespeople / 189 Units = 7 Units Per Salesperson
8 Ways to Sell a Car - 2 Ways (Phone/Internet) = 6 Ways
Increase 2 Units x 27 Salespeople = 54 Additional Net Units
Point of Diminishing Return on Follow Up for the Showroom

Examples of Dealers Being “Upside Down”
Another Ford Dealership - Much Smaller
100 units per month
9 Sales Consultants, 3 Managers and a GM
1 Internet Director, 3 Part Time BDC Reps
Showroom has less than 200 Ups per month
BDC Does EVERYTHING, has 260 fresh leads, 300 RFF,
hundreds of ROs, hundreds of Be-Backs etc…
BDC is responsible for 49 units
Take away BDC, the Showroom is ONLY averaging 5.7 units a piece!
They are missing 30+ on the Showroom Side and
another 30-40+ on the Internet Side!

The Solution...
....is building an
“Internet Dealership”
A TRUE Hybrid Scenario

Contact Info
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Sean V. Bradley, CSP - President & Founder
Dealer Synergy
seanb@dealersynergy.com

Blueprinting a High-Functioning (and Profitable) Internet Dealership... NOT a Department (Part ONE - Infrastructure & Ecosystem Philosophy of a Synergistic Internet Dealership

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Blueprinting a High-Functioning (and Profitable) Internet Dealership... NOT a Department (Part ONE - Infrastructure & Ecosystem Philosophy of a Synergistic Internet Dealership