The Top Reasons Internet Departments Fail -by Mark Dubis

	This article originally appeared in World of Special Finance Magazine- September 2007 Issue
	The Top Reasons Internet Departments Fail
	by Mark R. Dubis
	Over the last few years I have been fortunate to meet and speak with hundreds of Internet Sales Managers from new car dealerships all over the country. Without an exception they all loved what they were doing and were overly optimistic about the future of the Internet and how it could better serve their customers. Many of these managers would also share their frustrations with me. "Mark, when you call me next week, I will be at a new dealership and here is my new phone number and email address" they would say. My reply, "What's going on, you've been there two years, I thought you were happy there?" And then they would open up with all the things that were gnawing at them and keeping them up at night. I sincerely started to feel their pain, so I started to keep notes from these conversations and saw a pattern develop. At the base level it always came down to new school versus old school. The people in control at the dealership were used to doing things a certain way and they were stubbornly holding on to those practices. The folks in the Internet department were the new school devotees and didn't have the authority or the respect from upper level management to buck the system. If you are an Owner or General Manager and you aren't seeing top tier results from your Internet department. Take a look at this list and see how many of these points are in play at your dealership.
	Internet Departments fail because:
	the dealership set up a hierarchy so the Internet Sales Manager (ISM) has to answer to a multiplicity of persons (e.g., GM, GSM, On-Duty Desk Manager, F&I) the Internet manager has lots of responsibility, but no authority. Other managers make decisions regarding websites and lead providers without consulting the ISM. the dealership expects unrealistic results and does not provide the tools to do the job. A CRM software solution is a must to track leads and manage the dept progress and follow-up schedule. the dealership implements ridiculous packs over $1k the dealership exhibits a lack of respect at some levels of management and a general indifference to the department or staff in the Internet department. A clear attitude at different levels that "you're just another salesman". the dealership forces Internet transactions to reduce front-end grosses on purpose to make the dealership and F&I more money on the back end. (I have also heard of GSM's putting low gross deals into the Internet sales bucket, and that throws off the numbers of the department) general or sales managers make the Internet Department feel fortunate to get 100 leads per month, and those can be taken away, if upper management feels like it. there is an unwillingness to spend in order to make money. Most often the Internet sales manager is not in the loop for setting marketing budgets, thus the minimal amounts allocated to the department does not provide the resources to obtain the targeted results. the high level dealership management doesn't listen to recommendations from the Internet manager and just bellow back, "That's just how it is." the dealership doesn't provide a positive workplace culture where everyone works as a team. Cutthroat environments where departments and sales people have to watch their backs and cover their asses all the time do not make for a good work environment.
	Do you see any familiar items above? If you do, it means your good employees will probably be leaving you soon for your competitors. If you want to get serious about the Internet it's time to put some quality work practices into effect at your dealership, and maybe fire the old school managers who refuse to change with the times. All the best. Recommended Reading: The Speed of Trust by Stephen M.R. Covey

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