Relationship Selling. Make the Numbers Work for You. By Paul Sansone Jr Dealer Principal Sansone Jr s 66 Automall Neptune, New Jersey
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1 Relationship Selling Make the Numbers Work for You By Paul Sansone Jr Dealer Principal Sansone Jr s 66 Automall Neptune, New Jersey
2 The (De?)Evolution of the Internet Sales Manager 2
3 Salesperson Responsibilities: Met & Greeted Customers 1980 NO BDC Took Customers on Test Drive No Special Finance Department Managed Negotiations No Delivery Coordinator Salesperson Delivered Vehicles Incoming Sales Calls Followed Up on Unsold Showroom Traffic Networked Higher Sales Person Retention Higher Dealership Loyalty BRAND LOYALTY Built Referral Base 3
4 BDC Now Salesperson 4
5 Unbalanced Workload Its Not About How Many Cars Your BDC Sells, It s About How Many Cars The Dealership Sells. BDC Salesperson Having Only a Few People in Your Dealership Engaged Does Not Work. For Anyone Why Not Reengage your Sales Team? 5
6 DEALER Culture Change Invest in our people and provide the tools & training for our sales team to generate their own leads vs. paying outside vendors to generate leads (most cost effective most profitable) Sales Department Stop waiting for the UP bus Truly Become a Business Within A Business Commit to training & follow ups MANAGERS Must Be Managers For Their Salespeople NOT JUST CLOSERS 6
7 EZ Referral/Sales Pro Provides the Tools to Change the Culture Friend Neighbor Significant Other Satisfied Customer Training EZ Referral Network Sales Pro Website Salesperson Links to Dealer Inventory Service Advisor Organization Trackable Phone # Links to Social Media Religious Organization Sibling 7
8 Lead Sources Lowest Closing Rate Lowest Gross Profit More Manpower Hours Needed Price or Driven Offer Motivated Relationship Motivated What s Your Game Plan? 8
9 Math Exercise NADA statistics: Average advertising cost per sale = $ /sale Dealer Delivers 200 cars/ Month Advertising Budget $110,000 = $550/car Competitor Franchise A= 150/month Competitor Franchise B =100/month N A B w A B How Many Cars Can The 9 S A B Dealers Sell With Little Or No Ads?
10 If A Dealer Spends No Money On Ads, How Many Cars Can He Sell? DEALER A DEALER B USED What s The Real Cost Per Car? 110,00/75 Additional Units = 1,465 per Additional Unit 10
11 What Is The Real Cost of 150 Internet Leads? /Lead: Monthly + 1 BDC Specialist : Monthly Sales+ Mgt Comp/ 25 % = Monthly 10%= /car : $ 24,000 - (12,500) =11,500 Not Much To Cover Fixed Expenses (Benefits/Rent/Floor Plan/ Support Personnel) 11
12 Most advertising dollars are focused on these because it s easier Relationship Selling: Make the Numbers Work for You Lead Source Source: Car-Statistics Closing Ratio First Time Ups 9% Internet Leads 10% Be Backs 67% Repeat Buyers 60% Referrals Friends, Family, Networking 12 55% Relationship Selling: Best Results - Very little spent here - Harder work until now with no tool
13 13
14 Make Referrals and Networking a Bigger Part of Your Business 30% of purchasers have a family member who plan to buy a new or used car within 90 days 60% of purchasers know someone who will buy within 60 days 71% buy because they like their salesperson 40% higher gross on repeats and referrals Source: Earn Over $100,000 Selling Cars Every Year by Joe Verde Local community events: Hope for a Ride Large buying programs for local businesses: example, Jersey Shore Premium Outlets Contact local organizations like PBAs 14
15 Nissan Motor Company Dealer Rejecter Study Report Why Did Local Nissan Purchasers Not Shop Sansone Jrs 66? Feb July 2012 Sept March 2013 Avoided Dealership 51.2% 45.5% District Rank (out of 245) Region Rank Customers Who purchased from Sansone Jr s 66 How Did You Become Aware Of The Dealership? Recommended by Friend or Family Feb July 2012 Sept March % 38.10% District Rank (out of 245) 1 1 Region Rank 42 7
16 Regional Sales Penetration Month Rolling Segment Adjusted RSE CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 Dec 2012 Prior ownership Year 1 Year 2 Year 3 EZ Referral 16
17 17 1 Good Referral = 7 Leads
18 We Need to Focus on Balance Lead Sources Price or Offer Motivated Relationship Motivated Newspaper Radio & Television Referrals Networking Higher Closing Rate Higher Gross Higher CSI Direct Mail Previous Buyers Internet Be Backs 18
19 Previous Buyer & Be Back Retention Products Follow Ups, Follow Ups, Follow Ups! CRM: Data mining including equity, End of Term/Lease Lower your payments Content Management Service Prospecting 19
20 Relationship Selling EZ Referral/EZ Sales Pro Train your salespeople to build a personal referral network Make every employee is now part of your sales team Business-to-business sales Network Non profits (corporate/personal) How social media will sell cars today 20
21 EZ Referral Network is a systematic way to: Get Referrals Track Referrals Pay Referrals Salesperson BDC/ Dealership CRM Referral Agent Customer Sansone Jr s66 Automall 14 Months. 2,700 Referral Agents. 295 Deals. 21
22 Customer Testimonial 22
23 Relationship Selling Make the Math Work for You! 23
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