Digital Dealer
How To Fail Your Way to Internet Success
Todd Smith
"The man who makes no
mistakes does not usually make anything."
-
E.J. Phelps, 1822-1900
If your Internet department is under-performing, bumbling, or is just a plain dead fish, this article is for you. Before I begin, I want to tell you that you are probably closer to success than you can even imagine. In fact, if you apply my simple technique you will succeed. How do I know this? Did I look into my crystal ball, or maybe overhear your conversation in the bathroom at one of those Web conferences? You'll be glad to know it was neither. I have had ample opportunity to be in hundreds of dealerships nationwide exploring their Internet departments and I have learned a lot about what works, what doesn't and the fine line that separates the two. Further in that discovery, I have been able to uncover one thing that truly separates winners from losers in the race towards e-commerce success. If you can consistently perform this one thing, you can turn your total failure of an Internet department into a highly profitable eDealership.
Before I tell you what it is, I want to explain to you that all the answers to your problems when it comes to e-commerce lie within your unsold customers. What could the people you haven't sold cars to possible tell you that will improve your dealership's e-commerce business overnight? EVERYTHING. Asking the right questions of the customers who haven't purchased a vehicle from your dealership will become the most highly profitable decision you can make for your dealership. I guarantee it. Really, that is all it takes. Yet I'm constantly shocked at the number of dealerships who call me with stories of their failures, but never do a shred of research as to try to understand why they are failing other than asking the Internet manager. Or in a lot of cases, just firing them and trying to find the solution to their problem in someone else. The solution is not at your dealership, it is in the (hundreds of) people who are trying unsuccessfully to do business with your dealership.
Now you are thinking, "What questions do I need to ask of these people? How many do I need to call and how often do I need to do this for my dealership?" Well, let's get right down to it. First here are six sample questions that I recommend asking; but remember, the questions should be based on the problems you are experiencing at your store. You should craft your questions so that you extract the most information from your customers. An example of this is if your closing ratio is low, you would ask questions about how they were treated and was the price acceptable.
Here are six example questions:
- 1. When you put in a lead at ABC dealership did we respond promptly?
- 2. Did we give you fair and upfront pricing on the vehicle you were looking for?
- 3. Did we answer all your questions in regards to making your purchase hassle-free?
- 4. Did you feel that we were open and honest in helping you?
- 5. What was the one most important reason you didn't purchase from our dealership?
- 6. Have you already purchased a vehicle or are you still in the marketplace?
Imagine having the answers to these questions from hundreds of potential customers. You would literally know exactly where your weaknesses are within your business. Now it is time to plug the holes. It may sound simple, but let me tell you that every store that is doing this has had at bare minimum a 25% business improvement and some have more than doubled their business.
The next item to address is, "How many prospects do I need to contact to get an accurate picture of how I am doing business?" The answer is, you need to have at least one hundred completed responses to give you a starting point. But remember, the more customers you talk to, the better and more defined the results will be for you to make a quantified decision.
Finally, I would, at the bare minimum, run this survey on a quarterly basis. If you are just starting out I would do it on a monthly basis, allowing you to get feedback faster and make necessary changes to improve your eDealership.
You could also call the walk-in customers you don't sell and ask slightly different questions. You would be getting real customer feedback about your advertising and how you treat customers without relying on the salespeople for this information. The feedback from salespeople I am including myself from back in the days when I sold cars has on occasion been less than accurate or stemmed just from ignorance in not knowing.
In building a successful eDealership, there is no such thing as "failure." All there really are, are results. What you choose to do with those results will determine the success or failure of your online dealership. In closing, remember that you are right around the corner from success. Just stop and ask one of your customers for directions.
Todd Smith is president and CEO of Target Marketing Group, the leading automotive Internet solutions provider. tsmith@dealeronline.com
