DEALERSHIP MANAGEMENT BEST PRACTICES

Transcription

1 DEALERSHIP MANAGEMENT BEST PRACTICES Атлант-М Moscow, Russia November 15th, 2011

2 Company Profile Operations in 17 states and 3 countries 2nd largest auto retailer in the U.S. 327 franchises: U.S. 172 International ,000 employees Publicly traded on NYSE: PAG 2

3 (% of Total Revenue) Best in Class Brand Mix 23% 5% 2% 12% Other 3% 3% 2% 11% 2% 5% 12% 5% 1% 5% 9% Premium/Luxury 68% Volume Foreign 27% Domestic 5% 6M

4 Represent 42 Different Brands Franchise Mix U.S. Intl. Total BMW Group VW Group Toyota Lexus Daimler Group Honda Acura Chrysler Jeep Dodge Jaguar Land Rover Ferrari Maserati Nissan Infiniti 7 7 General Motors 6 6 Aston Martin Other (Ford, Hyundai, Lamborghini, McLaren, etc.) Total

5 Worldwide Revenue 61% 39% 68% 5% 27% U.S. International Premium Volume Foreign Domestic 6M

6 U.S. Revenue United States 158 Franchises 52% 7% 41% States with PAG Dealerships Puerto Rico 14 Franchises Premium Volume Foreign Domestic 6M

7 International Revenue U.K. 143 Franchises Germany 12 Franchises 2 Joint Ventures 92% 7% 1% Premium Volume Foreign Domestic 6M

8 6M Highlights Retail units increased +10% New +5% Used +17% 127,876 Units 140,657 Total revenue increased 13% to $5.7 billion Revenue New +12% Used +19% F&I +14% $5.0B $5.7B S&P +7% 8

9 2010 AUTOHAUS INVESTMENT $2.8M 35 Car Showroom 16,000 Sq. Ft. 33 Bays Service Facility 55,000 Sq. Ft. 9

10 AMG Performance Center One of only 26 in the US Five-Time Winner of the Prestigious Mercedes-Benz Best of the Best award 10

11 OUR VISION: Become the customer s car company for life. OUR MISSION: To be "simply the best automotive retailer experience. 11

12 Business Model Mercedes-Benz of Fairfield SYSTEMS AND PROCESSES HUMAN CAPITAL MOST IMPORTANT ASSET SALES TOOLS AND MARKETING STRATEGIES CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION STRONG FOUNDATION FOR A LONG TERM BUSINESS GROWTH 12

13 CONFRONT THE REALITY Analyze and understand the problems to find THE SOLUTIONS. 13

14 STARTING POINT One-on-one interviews with every employee Understand their needs How can they become more efficient and more productive? RESULT Create written step-by-step manual outlining dealership processes and procedures 14

15 the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the workforce a bad system will beat a good person every time. W. Edward Deming 15

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17 Sales Department Procedures: Meet and Greet Sales Process/Presentation T.O. to the Business Office Delivery Process Follow-up after Delivery 17

18 Get to know your people Learn their strengths and weaknesses Evaluate their compatibility with their job functions Ensure that the right people are in the right positions 18

19 "People are definitely a company s greatest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps." Mary Kay Ash 19

20 Employee Motivation Pay Plans Employee Recognition Company Events Employee Satisfaction 20

21 You Get What You Pay For Decide what a great Sales/Service consultant can sell in a year. Decide what is the most you would pay a person to generate that amount of sales. Make sure the compensation plan delivers that amount of money at that level of sales. 21

22 Compensation for your Sales Force is not the place to trim costs; don t ever let it get in the way of keeping great talent. 22

23 Employee Recognition There are two things people want more than sex and money Recognition and Praise." Mary Kay Ash 23

24 Grow Your Business Sales & Marketing tools Creative Marketing Interdepartmental Cross-Promotions (between Sales and Service) Customer Loyalty through Customer Satisfaction 24

25 SALES & MARKETING TOOLS What do your salespeople and service advisors need to succeed? Give them a toolkit that helps them out during every step of the sale. Outfitting your front line with the right tools is critical to your company's success. 25

26 CRM Customer Relationship Management (CRM) software is about giving your employees an easy-to-use information system they need to serve and enhance the relationship with your customers - including potential customers (leads). It It starts by having all the customer and lead information at the fingertips, including quotes, orders, phone call notes, s, projects - everything. 26

27 CRM DASHBOARD 27

28 CRM DASHBOARD - Daily Activities Log Sales 28

29 CRM DASHBOARD - Daily Activities Log Service 29

30 CUSTOMER INFORMATION (CRM system) 30

31 SALES WEB LEADS (CRM system) 31

32 SALES WEB LEADS (CRM system) 32

33 REPORTS (CRM system) 33

34 SERVICE APPOINTMENT REPORT (CRM system) 34

35 SERVICE APPOINTMENT EVENT (CRM system) 35

36 CAPTURE REPORT (CRM system) 36

37 MARKETING TOOLS- TEMPLATES (CRM system) 37

38 TEMPLATE- Purchase Inquiry (CRM system) 38

39 Purchase Inquiry Actual Reply (CRM system) Hello Dave, Thank you for your internet inquiry. My name is Adrienne and I am an Internet Customer Care Representative for Mercedes-Benz of Fairfield. Q1: I understand you are interested in a new 2011 Mercedes-Benz C350. A1: We do not currently have any 2011 C350 in stock. We can locate one for you or order one to your exact specifications. We do have a CPO 2010 Mercedes-Benz C350 stock #F917811A available for your consideration. I have included a link for more information on this vehicle mercedes~benz-c~class-c350_luxury_sedan-used html. Do you have a trade in toward the C350? We have a special finance offer for any 09/10 C-Class- 1.99% for 66 months. I would like to invite you to come in to our dealership for a test drive of the C350...the best way to see if the C350 meets your needs. I will be calling you to schedule a convenient time to come in to test drive the vehicle. Comments: Mercedes-Benz of Fairfield has been awarded the Best of the Best for 2010 so you are guaranteed a world-class shopping experience. We are also the only AMG Performance Center in Connecticut. Come experience our beautiful showroom and outstanding customer service. Our customer lounge offers free Wi-Fi, coffee, pastries and we offer courtesy loaner vehicles with every service appointment. Next Steps I will call you soon to review the information above and answer any questions you may have. I d encourage you to explore our website. Click on the following links Tour Facility and Testimonials to learn more about our award winning dealership. My goal is to make your experience as efficient and enjoyable as possible! Best Regards, 39

40 MONTHLY SALES AND DELIVERY LOG 40

41 DAILY/MONTHLY SALES FLOOR/PHONE UP s LOG 41

42 SALES DEPARTMENT Monthly Bonuses 42

43 One on One monthly Sales Performance Review 43

44 DAILY/WEEKLY SHOP PRODUCTIVITY LOG 44

45 SERVICE ADVISOR PRODUCTIVITY LOG 45

46 SERVICE DAILY APPTS BDC LOG 46

47 PARTS ADVISOR PRODUCTIVITY LOG 47

48 PARTS INVENTORY ANALYSIS MONTHLY REPORT 48

49 BDC MONTHLY TREND REPORT 49

50 INTERNET LEAD/SOLD BDC MONTHLY REPORT 50

51 INTERNET LEADS ASSIGNED/SOLD - BDC REPORT 51

52 SERVICE CSI REPORT - DAILY 52

53 AutoAlert 53

54 AutoAlert 54

55 AutoAlert Retail Alert Sales Screen 55

56 AutoAlert Lease Alert Sales Screen 56

57 AutoAlert Lease Alert Service Screen 57

58 AutoAlert Lease Alert Details Screen 58

59 AutoAlert Conquest Opportunities 59

60 AutoAlert Ext Warranty Opportunities 60

61 AutoAlert Extended Warranty - Time 61

62 AutoAlert Extended Warranty - Mileage 62

63 AutoAlert Extended Warranty - Mileage 63

64 AutoAlert Extended Warranty - Mileage 64

65 vauto Pre-Owned Inventory Management System 65

66 vauto Off-Target Vehicles 66

67 vauto Vehicle Market Report - MB 67

68 vauto Vehicle Market Report-Off Brand 68

69 vauto Cars.com CRP/VDP 69

70 vauto AutoTrader.com CRP/VDP 70

71 vauto Trade Appraisal 71

72 Marketing Strategies Marketing is an integral part of making it big. You may have the ingenious product in the world, but what's the point if you can't find the market for it? Without a market, a product is as good as dead. Every small business has to engage in aggressive marketing, if it aims to reach its best potential. Most naive entrepreneurs believe that marketing takes a lot of money and it is only meant of giant business organizations. NO! 72

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74 PRE-OWNED VEHICLE ON 74

75 VIDEO FOLLOW UP 75

76 ONLINE REPUTATION MANAGEMENT 76

77 SEARCH ENGINE OPTIMIZATION 77

78 INTERNET ADVERTISING 78

79 MONTHLY E-NEWSLETTER 79

80 GRASSROOTS MARKETING 80

81 BUILD A REPEAT & REFERRAL BUSINESS Front Back 81

82 CROSS-PROMOTIONS 82

83 CROSS-PROMOTIONS 83

84 PRESS RELEASE 84

85 IN THE NEWS 85

86 GIVING BACK TO YOUR COMMUNITY 86

87 SOCIAL MEDIA 87

88 INTERDEPARTMENTAL CROSS-PROMOTION Sales feeds Service Service feeds Sales 88

89 YTD Pre-Paid Maintenance Penetration Dec MBUSA Report 89

90 WEEKLY NEWSPAPER ADS 90

91 RESULTS 91

92 BY HAVING THE RIGHT SYSTEMS IN PLACE AND THE RIGHT PEOPLE YOU HAVE BUILT THE FOUNDATION FOR A BUSINESS TO SUSTAIN GROWTH EVEN IN THE MOST CHALLENGING ECONOMY. 92

93 YEAR OVER YEAR PERFORMANCE Dec MBUSA Report 93

94 YOY Performance MBUSA Report Through December 2009 FAIRFIELD, CT SUMMARY YTD09 YTD08 09 vs '08 Δ Dealer % Market 03 11,505 13, % Area A 34,118 41, % Northeast Region 60,408 70, % National 189, , % 94

95 YOY Performance MBUSA Report Through December 2010 FAIRFIELD, CT SUMMARY YTD10 YTD09 '10 vs '09 Δ Dealer 1, % Market 03 14,193 11, % Area A 41,802 34, % Northeast Region 72,632 60, % National 215, , % 95

96 2010 RESULTS New Vehicles Retailed 1,081 (28.4% over 2009) Pre-Owned Vehicles Retailed 591 (29.3% over 2009) Total Labor Sales - $5,062,000 (10.2% over 2009) Total Parts Sales - $6,345,000 (12,1% over 2009) Net Pre-Tax Income $3,443,000 (34.2% over 2009) Total Dealership Employees 85 Employee Satisfaction 4.03 (on the scale from 1 to 5) Employees Turnover 10% (one of the lowest in PAG) 96

97 Let the systems run the business, and make sure the right people run the systems. This lays the foundation for sustainable growth, even in the most challenging economies. Eric A. Ferits 97

98 Eric A. Ferits General Manager Mercedes-Benz of Fairfield Office: Mobile: