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Working Your Pay Plan On The Internet
  by Increasing Your Dealer’s R.O.I.
               Presented by

             Phil Zelinger
             President & CEO of
INTRODUCTION
• 30 Years of selecting “Best Practices”
• Real World Problems and Solutions
THE INTERNET FROM THE
                  DEALER’S PERSPECTIVE

•Common goals: sell more – make more

•Dealers are people too

•The dealer hired you to solve a problem

•Accountability – Internet R.O.I.
Dealer Web Sites
                                                                                                     Found Most
                                                                                                     Frequently Through
     Entered dealer name in a search engine                                                      36% Search Engines.
       Entered car type in a search engine                                         25%
     Entered brand name in a search engine                                         24%                         59% found a dealer
                   Typed in URL for dealer site
                                                                                 19%                           Web site through a
                 Linked from a manufacturer site                                18%                              search engine
                                                                                17%
Saw an advertisement in the newspaper
                       Saw an advertisement on TV                             12%
                                                                              12%
                      Learned from a friend
          Linked from an online advertisement                                8%
                                                                             7%
              Linked from a third-party site
          Heard an advertisement on the radio                                7%

                                                                      0%         20%          40%           60%         80%         100%


                                                             Percentage of Online Automotive Researchers
                                                               Who Visited Automotive Dealer Web Sites
Question: How did you locate the dealer Web site(s) you visited while researching your most recent or planned vehicle purchase or lease? (Select all
that apply.)
                               Source: JupiterResearch/Ipsos-Insight Automotive Consumer Survey (12/05), n = 403 (online automotive researchers who
                               visited dealer Web sites, US only)
How did you find the dealer?

                              100%    4% 1%                              4%                                                   Online classifieds site
      Percentage of Segment



                                      4%                                 4%                           10%
                                         3%                              6%                            1%                     Auction site
                                        7%                               8%                           10%
                              80%                                                                                             Search engine
                                         16%                                                           6%
                                                                        14%                                                   Third-party site
                                                                                                      19%                     Manufacturer site
                              60%                                       11%
                                         17%                                                                                  Saw dealer’s ad in newspaper
                                                                        13%                           14%
                                                                                                                              Via friend or colleague
                              40%        15%
                                                                        15%                           11%                     Found dealer by random visit

                                                                                                       9%                     Knew dealer
                              20%
                                         32%
                                                                        24%                           20%
                               0%
                                        Online               Researchers who               Researchers who
                                                                                                                                             Note: Respondents who
                                      automotive              submitted RFQs                  e-mailed or                                    answered, “None of the
                                     researchers                                            visited dealers                                  above,” are excluded from
                                                                                                                                             this chart: They represent
                                                                                             found online                                    27 percent of overall online
                                                                                                                                             automotive researchers.

                       Lo                                                                                           Hig
                       w            Degree of Dealer-Buyer Engagement                                               h
Question: How did you find the dealer that you purchased your vehicle from? (Select one.)
                                      Source: JupiterResearch/Ipsos-Insight Automotive Consumer Survey (12/05), n = 1,180 (online automotive researchers, US only), n = 192
                                      (researchers who submitted RFQs, US only), n = 190 (researchers who e-mailed or visited dealers found online, US only)
RE-DEFINING YOUR ROLE –
                     C.C.C. VS. B.D.C.
•“Always Be Closing” – SELL YOURSELF AND YOUR DEPARTMENT
•Ask the questions first, then answer them!

•Get involved in the selling process

•Establish expanded areas of responsibility

•C.C.C. vs. B.D.C. – Re-define your role
INTEGRATE THE INTERNET
                 INTO SELLING PROCESSES

•Software – Use it or lose it!

•Inspect what you expect
•You can’t manage what you can’t measure

•Cross Boundaries- areas of responsibility!
•Be careful what you ask for
AREAS OF RESPONSIBILITY


INTERNET C.C.C. MANAGER - AREAS OF RESPONSIBILITY:
1) OUT-BOUND PHONE CALLS / CONTACTS
2) IN-BOUND PHONE CALLS / CONTACTS - Sales Calls
3) INTERNET SALES
4) LEASE RETENTION
5) GALLEY LISTS
6) THREE YEAR RETAIL PURCHASE
7) LETTERS – SALES AND SERVICE
8) INTERNET CLUB EMAILS AND SPECIAL PROMOTIONS
9) BUSINESS LINK
10) CUSTOMER SATISFACTION

GOALS: 4-5 appts. per day per person; sell one = 120 + appts. per month,
80 +/- show up = 20 units per person per month based on a 25% closing ratio.
The Sales and Service Staff Hate You
        …. GET OVER IT – JOIN THE TEAM!
•Cross Train as much as possible

•Free everyone else up to sell cars/service

•Make appointments and provide
“secretarial” services and reports

•Improve their R.O.I. & They will Love You!
ESTABLISHING GOALS, ACCOUNTABILITY –
            GETTING PAID ON THE BOTTOM LINE!
•   S.E.O. and S.E.M. = R.O.I.
•   M.S.R. vs.“Covering The Nut”
•   “Delegate” vs. “Do” - Goals / Accountability
•   Conventional Media as part of S.E.M.
•   C.P.P.–Reach–Frequency–DOMINATION!
•   Establishing/Monitoring budgets – R.O.I.


• WORK YOUR PAY PLAN!

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Working Your Pay Plan

  • 1. Working Your Pay Plan On The Internet by Increasing Your Dealer’s R.O.I. Presented by Phil Zelinger President & CEO of
  • 2. INTRODUCTION • 30 Years of selecting “Best Practices” • Real World Problems and Solutions
  • 3. THE INTERNET FROM THE DEALER’S PERSPECTIVE •Common goals: sell more – make more •Dealers are people too •The dealer hired you to solve a problem •Accountability – Internet R.O.I.
  • 4.
  • 5. Dealer Web Sites Found Most Frequently Through Entered dealer name in a search engine 36% Search Engines. Entered car type in a search engine 25% Entered brand name in a search engine 24% 59% found a dealer Typed in URL for dealer site 19% Web site through a Linked from a manufacturer site 18% search engine 17% Saw an advertisement in the newspaper Saw an advertisement on TV 12% 12% Learned from a friend Linked from an online advertisement 8% 7% Linked from a third-party site Heard an advertisement on the radio 7% 0% 20% 40% 60% 80% 100% Percentage of Online Automotive Researchers Who Visited Automotive Dealer Web Sites Question: How did you locate the dealer Web site(s) you visited while researching your most recent or planned vehicle purchase or lease? (Select all that apply.) Source: JupiterResearch/Ipsos-Insight Automotive Consumer Survey (12/05), n = 403 (online automotive researchers who visited dealer Web sites, US only)
  • 6. How did you find the dealer? 100% 4% 1% 4% Online classifieds site Percentage of Segment 4% 4% 10% 3% 6% 1% Auction site 7% 8% 10% 80% Search engine 16% 6% 14% Third-party site 19% Manufacturer site 60% 11% 17% Saw dealer’s ad in newspaper 13% 14% Via friend or colleague 40% 15% 15% 11% Found dealer by random visit 9% Knew dealer 20% 32% 24% 20% 0% Online Researchers who Researchers who Note: Respondents who automotive submitted RFQs e-mailed or answered, “None of the researchers visited dealers above,” are excluded from this chart: They represent found online 27 percent of overall online automotive researchers. Lo Hig w Degree of Dealer-Buyer Engagement h Question: How did you find the dealer that you purchased your vehicle from? (Select one.) Source: JupiterResearch/Ipsos-Insight Automotive Consumer Survey (12/05), n = 1,180 (online automotive researchers, US only), n = 192 (researchers who submitted RFQs, US only), n = 190 (researchers who e-mailed or visited dealers found online, US only)
  • 7. RE-DEFINING YOUR ROLE – C.C.C. VS. B.D.C. •“Always Be Closing” – SELL YOURSELF AND YOUR DEPARTMENT •Ask the questions first, then answer them! •Get involved in the selling process •Establish expanded areas of responsibility •C.C.C. vs. B.D.C. – Re-define your role
  • 8. INTEGRATE THE INTERNET INTO SELLING PROCESSES •Software – Use it or lose it! •Inspect what you expect •You can’t manage what you can’t measure •Cross Boundaries- areas of responsibility! •Be careful what you ask for
  • 9. AREAS OF RESPONSIBILITY INTERNET C.C.C. MANAGER - AREAS OF RESPONSIBILITY: 1) OUT-BOUND PHONE CALLS / CONTACTS 2) IN-BOUND PHONE CALLS / CONTACTS - Sales Calls 3) INTERNET SALES 4) LEASE RETENTION 5) GALLEY LISTS 6) THREE YEAR RETAIL PURCHASE 7) LETTERS – SALES AND SERVICE 8) INTERNET CLUB EMAILS AND SPECIAL PROMOTIONS 9) BUSINESS LINK 10) CUSTOMER SATISFACTION GOALS: 4-5 appts. per day per person; sell one = 120 + appts. per month, 80 +/- show up = 20 units per person per month based on a 25% closing ratio.
  • 10. The Sales and Service Staff Hate You …. GET OVER IT – JOIN THE TEAM! •Cross Train as much as possible •Free everyone else up to sell cars/service •Make appointments and provide “secretarial” services and reports •Improve their R.O.I. & They will Love You!
  • 11. ESTABLISHING GOALS, ACCOUNTABILITY – GETTING PAID ON THE BOTTOM LINE! • S.E.O. and S.E.M. = R.O.I. • M.S.R. vs.“Covering The Nut” • “Delegate” vs. “Do” - Goals / Accountability • Conventional Media as part of S.E.M. • C.P.P.–Reach–Frequency–DOMINATION! • Establishing/Monitoring budgets – R.O.I. • WORK YOUR PAY PLAN!