Digital Dealer Q&A
Chuck Ruhile
Normandin Chrysler
125-Year-Old Dealership
San
Jose, Calif.
Chuck what is your background in the car business?
Well, I have been in the business about 21 years. I started on the sales force, I spent about six years as a GM, new car manager, used car manager, a few years in finance, and as a closer and freight manager.
What is your title at the dealership?
I'm the fleet manager.
How long have you been with Normandin Chrysler?
It will be seven years in June.
How long has Normandin been online?
I was talking with the business manager about that a little while ago and we think that it has been about three, three and a half years.
You're the fleet manager, so obviously, handling the Internet is just part of your job. What percent of your time do you spend on the Internet side?
About half.
How do you generate Internet leads?
We have our web site which attracts some attention. We also have a couple of services that we go though.
What are the services that you use?
We go through the Chrysler's Get a Quote Program, of course, which has been very good over a period of time. We were one of the pilot dealerships. Also we have cars.com, we have had that one since it started, Car Smart and several others that are trying to get our business that are sending us leads in the meantime.
So you anticipate that you will be singing up with some more?
It's a possibility.
How do you generate traffic to your own site?
Basically it's just getting all the right key words on your web site, having the right service taking care of your web design and all of that. Making sure that they are doing their job properly. Not that long ago, about eight months to a year ago, we switched Internet providers. At that time things increased quite a bit.
Besides listing with the search engines, what else have you done to generate traffic to your site?
We put our URL on all of our advertisements. It's on our business cards. Everything that we send out to our customers has our web site on it.
I had noticed on your site that you scheduled service appointments online and you can sell parts online.
Yes, we do and we can.
What were the steps in your getting to this point online?
Well, just getting started was a major one. I think with a lot of dealers, starting is the hardest part, because not having the experience with the Internet, you think you are doing the right thing but you probably are not going far enough. You are getting a computer and you have a web site set up and everything, but you have to refine it quite a bit and get it all to where everybody knows what is going on.
Take me through your sales process, from the moment you receive a lead until the vehicle is delivered or the prospect goes somewhere else.
First thing in the morning, I come in, I turn on the computer, check my e-mail and print out everything that is there, making sure that I have all of the leads. I find the car in stock that the customer is looking for. Then I respond as quickly as possible, with a complete breakdown of as much information as I can send to them based on the way they want tobe contacted.
So you would contact them as they asked you to contact them? I know some folks will call on the phone regardless of how the person asked to be contacted.
Well, one of the things that I have noticed over the years, is it pays to pay attention to what the customer wants. If they put down that they want to be contacted by e-mail, contact them by e-mail. I have had customers tell me before that it drove them nuts when they wanted to be contacted by e-mail and they had somebody calling them constantly. In the e-mail, I tell them that I will follow-up with a phone call within 24 hours to make sure that they got their quote. That's basically it, if they give me a phone number. A phone number is not necessarily required. The important part, I think, is contacting them as quickly as possible and giving them as much information as possible. If they are looking on the Internet, chances are pretty strong that they already know what they are looking for. It seems to me that they are just looking for a dealer who is going to try to make it as easy as possible for them.
What's your process for following up?
If I don't hear from them with in about 24 hours, I will follow it up with a phone call to make sure that they got their quote. If the phone number doesn't work or if they are not home and I have to leave a voice mail, I will follow that up with an e-mail to find out if they got their quote. Generally I give them a little time after that, because if they are interested they will let me know. The first three days you have to have a couple of different contacts with them just to make sure that everything is okay.
What if that person contacts you back and says, "I want the car?" What is the process at that point?
What we do them is we set an appointment. Most often they won't tell me that they want the car. They will tell me that they would like to see the car. At that point I set an appointment with them at a mutually-convenient time. I show them the car that I have in stock. I take them for a nice test drive to make sure they like the way the car handles, etc. From there, if they would like to purchase the car, it is just a matter of getting the paperwork taken care of.
How has Normandin integrated the Internet department with the showroom sales force?
The Internet department is separate from the retail salesmen on the showroom floor. The reason for that is the average retail salesman doesn't have the ability to quote a price on a specific vehicle given to someone on the Internet or during a phone call. Retail sales are a little bit different then the Internet or fleet department. Although the salespeople will come to me from time to time saying that they have a customer that saw our web site, the next thing you know I am getting an e-mail from the customer. The salespeople all know where my business cards are and if they have a customer that is interested in the Internet, they will give them my business card with my e-mail address and will let me know what the customers name is to make sure that they get credit for the customer coming through the door.
Mark Normandin had mentioned to me that you do about ten percent of your new business through the Internet department?
That's about right.
So how many units a month, new, are you doing now off the Internet?
Right now through the Internet department, about ten to fifteen per month, average.
Do you do any used?
Yea, we are not doing as many used, but we are getting stronger in that area since our used car inventory is now on the Internet. Over the last six months, used has probably averaged two to four cars a month off the Internet.
What were those numbers about a year ago for new and used?
About three to five new and maybe one used.
Where do you expect the new and used numbers to be a year from now?
The new numbers should be in the twenty to thirty range. The used will be approximately five to fifteen.
To what do you attribute the increase from a year ago and the expected increase a year from now?
Knowledge and learning as much as we can. Trying to work a little harder in order to get everything done and wanting to expand. Not wanting to fall behind.
What have been the biggest hurdles so far in putting this Internet department together?
Lack of knowledge. Four or five years ago, none of us knew anything about it really. My wife knew about computers and the Internet and things like that and I knew next to nothing. The general manager knew very little but over a period of time we just learned more and more.
How do you think Normandin will be using the Internet five years from now?
Now that is a great question. My wife and I were talking about it because she works on the Internet. What is going to be happening on the Internet in five years? Four years ago, if you had someone e-mail you a picture, that was very unusual. Now you have people e-mailing you movies. How could I predict what will be happening in five years?
What advice do you have for dealers just now getting involved with the Interent?
Boy, that is an easy one. In big bold capital lettersjust do it. Just do it, don't be afraid of it, don't try to keep it as cheap as possible. Do a little investigation. Find out the best way to go and set your people up with some good equipment. Do it.
What do you have to say to those who choose to wait and see if this goes anywhere?
Well, if you snooze you loose. There are dealerships with complete Internet departments. The cars that they are selling are the cars that those dealers without the Internet are losing. They are taking it right out of your market. The dealers who choose to wait and see are going to fall way behind. It's going to be hard to catch up.
