Top Reasons Internet Departments Fail

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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.” 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.

Recommended Reading: The Speed of Trust by Stephen M.R. Covey

2 Responses to “Top Reasons Internet Departments Fail”

Christine says:

July 15, 2010 at 2:15 pm

True! From 1. to 10.

The lack of respect from the traditional
SM has been my experience for many years. I hold more gross and have more units out in the Internet Department then( 80%) most Floor Sales associates. Also the Internet is a separate division that needs the protection and the floor needs to focus on RETAIL the walk in traffic

Customers walk in to meet with Internet or Fleet tail are not getting to us ,SM are, taking Fleet/ Internet brokers through the retail front. It all trickles down from the top. I would not be bothered but it effects our numbers.
Internet Office location is also an issue.

Future is in the Internet we all agree
If we have to monitor traffic and respond at our desks quickly as this is a part of what the consumer expects and want to keep the volley going to convert, meanwhile unless we have drilled the customer no one bothers to look into the customer Log and guide our internet customers to our office…

Which I have seen to be anything from an old storage closet to the corner of a dirty conference room.
I have sat on the stairs to the parts department with notebook laptop and cell phone and sold more then the average floor guy. At a highline Franchise Dealer Location…

Unless it is clear that the Internet Manager has the same respect as a desk Manager the department cannot reach its full potential. I desk all my deals anyway and assist my co-workers however I can, why there is no Team as a whole I have not understood jet.

My favorite question: ” Is your customer here?” And that means no questions are answered as we are not a priority. Yes The Customer IS HERE ON THE OTHER side of the Computer.

The tip toe is an art and I have done it for quite some time. The GM is never the issue it is always the SM /DESK. Especially the ones in the what I call the “Boys club”Peter principle is very often executed in larger Corporations.

Sometimes I wish to go right to the TOP and let the powers in charge know what’s really going on….then again ..I am just the Internet Manager ..

I have been in the RESULTS Business for quite some time and that is the only way to push the department to the TOP and get the support we need.

However my other Internet partners change rather quickly as they cannot deal with the situation. I have gotten a thick skin by now and the fact that I am a women in the Automotive business has made me work harder to get where I am. There have been many promotions that I have been passed up for a less producing Male candidate…here we are in the Boys Club with Peter Principle as a driver.. I learned to make the best out of things I cannot change.

I will continue to believe in the Internet Department and work hard and smart to achieve goals and sales that are new to the store I work for and maximize gross profit and Unit sales.

Someday things will turn around..time

Thank you for 1-10
C.
KB says:

August 4, 2010 at 1:05 pm

I believe these are the things ISM’s say regarding their departure…from their perspective. And I also know there are Dealer Operators out there that think ISM’s just sit n play on the computer too.

The challenge is to get everyone on the same page with the internet. Does the Dealer really know what the ISM is sending to his customers? Does the ISM really know what the Dealer wants sent to his customers? What are your competitors sending to your customers?

One thing that will never change in our business is you constantly have to inspect what you expect. Even if you have your process well documented, how do you track execution? Do you know in your market who quotes price & who doesn’t? and if they do, how much off MSRP? Consistently? And which of them use autoresponders, set at what time? Have you double checked your e-mail reply templates to see if they follow any progression?

How about spelling? One of the biggets CRM tool vendors does not even include spellcheck in their tool. Look at http://www.ihelp4dealers.com/Not_very_good.html and ask yourself the question at the bottom of the page. Maybe that guy needed to go… Or maybe the Dealer needs a different perspective. Are you asking these questions in your deal?