Monday, August 22, 2011

Are you ready for a BDC that does it ALL?? (Part 2 of 2)




In the first part of this article, we talked about the concept of an all encompassing BDC to handle all of the Departments in your dealership.

The real question is…does your BDC actually DEVELOP BUSINESS??

Does your BDC assist and compliment each of your departments in the store?

Does your BDC help capture videos of happy customers either taking delivery of their New or Pre-Owned vehicle or having a fantastic Service Department experience?

Now, let’s see how the BDC would be responsible for handling each department. These points are just thought starters. There are MANY more areas of the dealership that your BDC can help you retain and develop business!


Sales Department incoming leads – Have the BDC handle ALL incoming Sales phone calls and incoming internet leads. The majority of your customers are already going to Truecar.com, Edmunds.com, and KellyBlueBook.com for their pricing information. Embrace the customer by reaffirming that your pricing is within those guidelines. Have the BDC concentrate more on setting the appointment rather than selling the vehicle. When the customer is contacting you they are looking for a reason to either BUY from you or cross you off their list. Give them a solid reason to buy from you!

Sales follow-up – The BDC should be making both the “non-sold” follow-up and the “sold” follow-up phone calls to make sure that the customer has had a pleasant experience. The “non-sold” call should be made by the BDC to see if the customer had a good experience with both the Sales representative and the Manager that were involved in the deal. If either the Sales representative or the Manager has handled the customer incorrectly, you have the chance to overcome the bad experience and make it a positive one.

A customer is more likely to tell a “Customer Service Representative” calling or texting from the store about their experience. The customer is also more likely to tell a “Customer Service Representative” What the “real” objection was to the sale,…. i.e.: price, payment, trade, selection, experience……etc…. Use the information to inspect, improve and council your team on the positives and negatives.

The “Sold” follow-up phone call again reaffirms a customer’s experience. It gives the Dealership another chance to say “thank you” for the business. The “Sold” phone call can also set the stage for additional calls and e-mails or texts in regards to any Service and Sales specials, discounts and incentives the Dealership wants to market.


Sales CSI – A customer is more likely to inform the “Customer Service Representative” about a potential bad experience. Make sure you are proactive in addressing any concerns a customer may have. Their displeasure can become viral in a matter of minutes on Google, DealerRater, Yelp or any of the other on-line sites. Protect your on-line reputation!


Service Department – The Service Department handled by the BDC is an absolute must in order to retain your customer! The majority of phone calls that come into your Service Department are to set an appointment for servicing of the customers vehicle. If your Service Advisor is doing the correct job of communicating with the customer that already has a vehicle in the shop, there shouldn’t be any phone calls that come into the BDC, by the customer, to ask if their vehicle is ready for pickup. The BDC simply needs to be trained a little about “shop loading” and standard services pricing. Your Service Departments standard pricing of services such as; oil changes, tire rotations, alignments…etc…are easy for the BDC to give. STOP the phones from ringing in your Service Drive! Have your Service Advisors pay attention to the customers they have in front of them!

Service Follow-up/CSI – How do we know if the customer is satisfied with the service(s) that were just performed on their vehicle? If you track “come backs”, hopefully, the customer WILL come back. Sometimes you only get one shot at servicing a customer’s vehicle. But what if the problem was NOT resolved? What if the Technician left the car dirty inside? What if the Technician moved the seat, didn’t return the seat to the customer’s position, and changed the radio station to a channel that upset the customer? If you are the Dealer, General Manager or Service Manager, how can you correct these things if you don’t “inspect what you expect?” If you don’t have a process in place to make sure you retain your customers in Service, you will lose them to your competition.

Parts Department – Have you ever listened to a Parts Counter person answer a phone call from a customer? Most Parts Counter people are used to dealing with either the technicians in the shop or a wholesale account. Sadly, most have never been trained on how to deal with the customer that calls into the store. Your BDC should be handling the calls that come in from the customers wanting to talk with the Parts Department. Wholesale account phone calls should be transferred directly into the Parts Department. Customers usually want an OEM accessories price or simple parts pricing on items such as headlights or brake pads. Your BDC can be trained in how to look up these parts prices and then do something your Parts counter people don’t! Your BDC can quote them on the complete job with labor performed by your Factory Certified trained technicians and set an appointment to do the service! How many times have you listened to your Parts Department quote a price to your customer and never ask for the business? The customer usually takes the price and just shops it around. Shouldn’t you quote them the price for the part, and then quote them what it would cost to install the part and then try to set an appointment for the job?? Your customers are NOT backyard mechanics. They are not about to tackle anything more than simple items. Shouldn’t you be advising them that anything beyond a simple item needs to be professionally handled by your Factory Trained Technicians?

Marketing and Data-mining – Your BDC needs to develop a comprehensive process to continually market and data-mine your customer database! Your BDC needs to make sure that every time they have a customer interaction, they receive permission from the customer to send further Sales and Service specials or incentives. Marketing via social networks, direct mail, phone calling or texting needs to be a constant in order to keep your store on the top of your customer’s minds. Make sure you know and document the customer’s “preferred method of contact”!!! If they ONLY want an e-mail….don‘t call them! If they prefer a text message….send them the information via text! Make sure your BDC is CONSTANTLY updating the customer’s profile. Reaffirming phone numbers, e-mail addresses, home addresses and any other pertinent information you need. Make sure that you make marketing to your customers something that the customer has “opted-in” for!

Constant data-mining must be performed by your BDC also. There are several data-mining pieces of software that are awesome! If you don’t have a vendor that provides you with a good piece of software to perform this task, you will not be successful with data-mining. Calling ALL customers that have a certain year, make and model of car to see if they want to trade it in is NOT data-mining! It will frustrate both your BDC and customers alike. Go get a good data-mining tool! It is well worth the investment!


In summary, the words “customer service” seems to be an oxymoron these days.
A well trained BDC will be your “first impression” when a customer contacts your dealership. And we all know you get one chance at a first impression! Be the store that all your customers will tell all their friends and family about. Be the store that stands out in a crowd of mediocre competitors! If you’re NOT retaining the customers you fought so hard to get….it will be much MORE expensive getting new customers!



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Thursday, August 18, 2011

Are you ready for a BDC that does it ALL?? (Part 1of 2)


Does your BDC actually retain and develop business??

Are you ready for a BDC that does it ALL??

A BDC that actually Retains and Develops business for the store?

Are you ready for a BDC that goes well beyond simply handling incoming sales phone calls and sales internet leads?

Are you ready for a BDC that handles EVERYTHING in the store?

Are you ready for a BDC that handles ALL incoming Sales, Service, Parts and Body Shop calls, e-mails and texts?

Are you ready for a BDC that handles ALL outgoing Marketing efforts, Retention efforts, Customer Satisfaction efforts and Data mining?

Has this ever happened to you….??

You call a business to get a question answered.

Do you have to press “1” for this and “2” for that and so on...??

How irritated are YOU when you have to hit the prompt number…. only to wait again for yet another prompt…. to define your question to then go to another prompt…..UGH!!!!

Do you then just press “0” and beg for a live body to speak with??

Are you completely irritated before you even begin to speak with someone?

And by the time you do get to speak with someone, are you receptive to what they have to say??

In today’s “instant gratification, no patience” world, how long would YOU put up with not getting your questions answered?

What has happened to providing a “real” customer interaction with someone at the business that can handle any and all questions a customer may have?? And I am speaking of handling ALL questions….Sales, Service, Parts, Body Shop….etc…..

I am proposing that you do away with just having a phone receptionist and have your BDC handle ALL incoming inquiries.

If you have the phone receptionist “transfer” the call to that particular department, what happens when everyone is busy and they can’t take the customers call?

Does it bounce back to the receptionist? Do you then take a message?

Does the customer leave a “voicemail” for someone to answer in the specific department?

How long does it take for someone in that particular department to get “back with” the customer?? AND…most of all….don’t we want the people that are in their respective departments to handle the customers that are live and in front of them??

If the concept sounds expensive to implement, take a look at how many customer retention leaks you have going on at your Dealership now, and how much money you are throwing down the drain!!!

How many customers will you frustrate, not sell to, not retain and then lose to your competition?

How many of those frustrated and angry customers will tell everyone they know about their bad experience?

Will these unhappy customers give you bad reviews on DealerRater, Yelp, Google or any of the social networks such as Facebook, Twitter or Google +?

Unhappiness can go viral…..QUICKLY!!

STOP spending the majority of your marketing and advertising dollars in “traditional” marketing and advertising! What good will it do you if you advertise and market them into your dealership and then spend NO money or take NO action in trying to RETAIN them??

Think about it, if you were able to retain a VERY LARGE percentage of customers you have done business with, how many LOYAL customers would you have?

Take a look at your Service absorption percentage. Why are some Dealerships OVER 100% Service absorption? Wouldn’t it be nice to have ALL the bills paid before you sell your first New or Used vehicle?

The simple truth is….you can make this concept a reality……

You CAN be the Dealership that everyone wants to do business with!!

Make your business look like this:

Most towns have one…A legendary local business… that consistently attracts people from miles around…

It’s a place that the locals proudly bring visiting relatives and friends to….

The place that’s always jumping with turbocharged workers and lines of delighted customers…

Even while nearby competitors are struggling just to stay in business…

It is a highly successful business…where it is difficult to get a job there…all the employees are thoroughly trained…and all the employees wear a smile…and share a laugh…

Does this describe your organization??

In part 2 of this article, we will get into the specifics of what the BDC will do to retain and develop business for each department in the dealership!



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Wednesday, August 17, 2011

Retain them....or lose them....


Let’s review some Customer Retention….facts…

These statistics are directly from NADA, the National Automobile Dealers Association…

Ninety percent… and I repeat…

Ninety percent of a dealership’s advertising budget… is spent attempting to acquire a NEW or Pre-Owned vehicle customer.

While the remaining 10 percent of the budget… is spent in the Service and Parts Departments.

Considering that the average dealership spends $384,000 per year…on advertising

This means that the average dealership only spends $38,400/year on retaining its customers.

That statistic is disturbing.

The easiest and least expensive customer to sell to… is the one that has already bought from you.

The auto industry… is working too hard and spending too much money… constantly trying to acquire new customers…

And while acquiring new customers is VERY important…

They already have thousands in their database… that are theirs to keep once they develop the right retention plan.

Now…the average new vehicle customer…according to NADA… is keeping their vehicle approximately 40 months before trading it in…

AND…Regular service customers are 17 times more likely to buy their next vehicle from their servicing dealership…

17 times more likely!!

Not twice as likely…or 5 times more likely…17 times more likely!!!

Did you also realize that 30% of YOUR customers…have a friend or family member that will purchase a vehicle in the next year?
Wouldn’t you like to have an opportunity to sell a vehicle to those people??

Very few dealerships track their marketing & retention efforts.


Most cannot tell… with a definitive answer… what is working and what is not.


More often then not, they do the same thing year after year.
That fits my favorite definition of insanity -- “Doing the same thing over and over again and hoping for a different result.”


So …what measurement instrument are you using…to track customer retention??


If you have to stop and think about it…you probably are not tracking it very well…


Is the Service and Parts Departments using specific operations codes to track your marketing efforts??


You can be very specific with these operation codes to help you track what is working and what is not…


Are you offering any special incentives to your customers to remain loyal??


You don’t need to give away anything to keep your customers loyal…


All it requires… is a little attention… and a little consideration…isn’t that what we all want??


There are countless ways to retain your customers…but you need to manage and measure these ways…


No program is good or bad …until it is measured…


Investing in retention… it’s an investment in the future… and cannot be underestimated.


So if you haven’t already… I strongly encourage you to take retention seriously.


Adopt a program to help you achieve results… and measure and track how the program you choose… works for you.

If not, you’re losing money to your competition.



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Tuesday, August 16, 2011

How low will you go? - Minimum acceptable standards


Does your organization have minimum acceptable standards…for your salespeople and Managers??

Standards… that are the very least amount that is acceptable…and still retain your job?

Now…every good organization has goals and aspirations…

And every good organization… has the statistics on what the benchmark numbers are and what the average numbers are…

But do they have minimum standards…that all employees must adhere to??

Let me give you a couple of examples…

Let’s say you have a Salesperson selling new and pre-owned vehicles…

Nationwide…the average amount of vehicles sold per salesperson ranges from 8 to 10 vehicles per month…

You have given this salesperson all of the training…motivation…and inspiration… you can possibly give them…

But they cannot sell more than 4 vehicles per month??

Why do organizations keep them…if they cannot perform their jobs??

Or what about a service advisor…after all…they are salespeople too…

What if they can’t meet the minimum standards of hours per repair order…or dollars per repair order…

What are the minimum amount of “upsales” that are required over a month’s period of time??

How about your management team??

What are their minimums???

Total sales??

Average gross per sale??

A percentage of increase in business??

And is there minimum acceptable Customer Satisfaction numbers…required for continued employment??

This is why an organization needs to develop…minimum acceptable standards…within the frame of their pay plans…

The minimum standards perform a couple of tasks…

Number one…it clearly states to the person…what the minimum standards are…to remain in your organization…

Number two…with the standards in place…and a constant review of the employee…there will be no surprises when we have to eventually let this person go…

Number three…the standards will not discriminate…between race…religion…or gender…it is simply the minimum amount that is acceptable over a certain period of time…

It plays no favorites… is completely black and white…and easy to understand…

The minimum standards… should be just that…the minimum that is required to remain in your organization…

It provides… just the right amount of pressure to perform…

And are clear and easy to understand…

It is very important to share all of the pertinent numbers with your people…

So that they have an understanding of how the organization has set the minimum standards…to where they are…

The employee needs to see what the industry average numbers are…and what the best of the best are able to do…the benchmark numbers…

Only by sharing and explaining…what your minimum standards are…and how the organization derived those numbers…

Can the employee then know… what the responsibilities…and requirements… of the job are…

These minimums must be reviewed on an ongoing basis…to make sure that they are fair …and timely….

Minimum acceptable Standards…isn’t it time you had them???

To see a video of this blog, please go to the following link:





About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Monday, August 15, 2011

Goal setting for Automotive Salespeople


Goal setting for Automotive Salespeople


All too often in the Automotive world, we let our salespeople fend for themselves every month. There are not enough dealerships, managers or salespeople that sit down at the beginning of every month and set a REAL goal for each person on their sales team.

In most dealerships, there is NO GOAL SETTING being done at all. And in some dealerships, the goal setting goes something like this…..”okay John, you sold 10 vehicles last month! This month….lets do 12!!” This type of goal setting accomplishes nothing!! We haven’t given the salesperson a REAL plan of HOW they are going to get to their goal.


When sitting down with your salesperson to set their goal, they have to see the old “W.I.I.F.M” (what’s in it for me). The best way to do it is to forecast how much MONEY they should make. And while money is NOT the only motivation that a salesperson has, it is how they pay their bills!

To start, you are going to need some simple metrics. I like to take the last 90 days worth of sales and commissions that an individual salesperson has accomplished.

Metrics needed:

  1. A monthly average of total money earned
  2. A monthly average of total vehicles sold
  3. A monthly average of commission earned per unit
  4. A monthly average of the total amount of clients that they spoke with
  5. A monthly average of their closing percentage


Let’s use these numbers for an example:

  1. Monthly average money earned - $ 2,750.00
  2. Monthly average cars sold – 10
  3. Monthly average commission per unit - $ 275.00
  4. Monthly average of clients spoke with – 50
  5. Monthly average closing percentage – 20%


NOW…when you sit down with your salesperson, you can “goal set” intelligently!

When the Manager counsels the salesperson on a daily basis, they can track and look for ways to increase the salesperson’s metrics.

I believe the goal setting for the month should reflect a 10% increase for the individual salesperson. And remember, I like to “goal set” using money.

A 10% increase in money for this salesperson would be another $ 275.00 or a total of
$ 3,025.00.

The salesperson now has to see what they will have to do to earn the 10% increase. There are several ways the salesperson can get there.

  1. If they maintain a 20% closing ratio, they would have to speak with an additional 5 people during the month or a total of 55. Let’s say they work 24 days out of the 30 in the month. They would need to speak with an average of 2.3 potential clients per day. When the Manager is doing their daily counseling with the salesperson, they can track this metric to make sure the salesperson is speaking with enough clients to reach their goal.

  1. What if the salesperson develops their skills and increases their closing percentage to 22%? The salesperson could then speak to the same amount of clients, (50) and sell 11 vehicles and thus meet their goal for the month.

  1. What if the salesperson develops their skills and averages a higher commission per unit? If they average $ 303.00 commission per unit they would also meet their goal.


Heavens forbid that the salesperson actually speaks with MORE clients, closes them at a HIGHER percentage and averages more PROFIT per sale! That would be the Monthly trifecta of car sales!! (I will get off my soapbox)

As leaders in the industry, it is our MISSION to get our people better! They need guidance, motivation, education and stimulation. They need discipline, practice and skill building. BUT FIRST…….you need to have a REAL plan on how you can help them get there. A “roadmap” of how to make more money, sell more vehicles, close more clients at a higher percentage and make a higher average commission per sale. The individual salesperson must SEE the metrics to genuinely understand HOW they are going to reach their goal!!

Otherwise……..we are just “hoping” that they will get there on their own!!



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Saturday, August 13, 2011

Simple word tracks for success (Part 2): “Compared with?”


The simple word track, “Compared with” will help any Team Member overcome the Clients “too high” price objection.

In most scenarios, when your Team Member presents the initial pricing figures to your Client, the Client will inevitably say that the price is “too high”. A lot of Team Members upon hearing that the price is “too high” will immediately want to “lower” the price.

Instead of instantly “lowering” the price, instruct your Team Member to ask the Client, “the price is too high compared with….???”

The Client may be comparing the price with:

What they paid on a previous transaction.

What they think they can afford.

What the other (same brand) is offering.

What the other (different brand) is offering.

What they previously paid with a higher down payment.

What they previously paid with a lower down payment.

What a lower priced vehicle is offering.

What a higher priced vehicle is offering.

What the internet told them to pay.

What their friends say they should pay.

What they paid for their first house.


The list goes on and on.

The point is, instead of your Team Member immediately wanting to drop the price, “Compared with” lets your Team Member find out exactly why the Client wants to get a lower price. Sometimes it is the only objection a Client may have. It may be only a QUESTION that the Client has and not a REAL objection to the sale.

The Client is always going to simply ask to lower the price. If your Team Member has done a great job of presenting your product and built a lot of value in the product, the objection can be easily overcome.

When your Team Member is quick to lower the price, the Client will believe that there is even more negotiating that can be done. Using the word track, “compared with” will find out what the REAL objection may be. Knowing what the REAL objection is your Team Member and Management can overcome the objection and retain more gross profit!

“Compared with”, a simple yet powerful word track you can teach your Team Members!



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff






Simple word tracks for success (Part 1): “Tell me more”


The simple word track, “Tell me more” is one of the most powerful yet simple word tracks you can give to your team! This simple word track both builds rapport with the client AND defines exactly what the customer’s statement or question may be. Let me explain in a number of different ways.

In order to sell a client anything, you must first sell yourself. No one will buy anything from someone that they are not comfortable with. The word track, “Tell me more” shows the customer that you are both listening to their wants and needs, and also helps clarify what the client wants. The word track, “Tell me more” is the question behind the question!

This word track should be used after EVERY statement or question a client may have. If you do NOT use this word track and define what the client means with their statement or question, it can lead into a client thinking that the your team member is “wasting their time”

Let me give you a scenario that sounds simple to answer…..yet.....maybe not!

A client comes onto the showroom floor. Your Team Member asks the client, “What is the most important feature you’re looking for in a vehicle?” The Client answers, “I am looking for a “SAFE” vehicle.” The Team Member does NOT ask “Tell me more” and proceeds to think they know exactly what the client means by the word “SAFE”. Your Team Member goes into an Academy Award winning performance of safety features on the vehicle. Airbags, seat belts, crumple zones and 5 star awards on the vehicles “SAFETY” The client seems to NOT be listening and quickly becomes disenchanted with your Team Member. Your Team Member can’t figure out why the client is not really listening or paying attention. There is NO RAPPORT built here and your Team Member may have already lost the sale.

NOW….lets use the word track, “Tell me more” in the same scenario…..

Your Team Member: “what is the most important feature you’re looking for in a vehicle?”

Client: “I am looking for a SAFE vehicle”

Your Team Member: “When you say the word “SAFE” can you tell me more?

Client: “The last vehicle I bought, I ended up owing a LOT more than the vehicle was worth when I went to trade it in.”

In other words, the client is looking for a “SAFE” investment!

By using the word track, “Tell me more”, your Team Member was able to define exactly what the Client meant and did not assume what the Client meant. And we all know the definition of “assume”……..

Here is another example…….

Your Team Member: “what kind of vehicle are you looking for today?”

Client: “I am looking for a large sport utility vehicle.”

Your Team Member: “When you say you are looking for a large sport utility vehicle, can you tell me more?

The client will then begin to tell your team member why they are interested in a large SUV. Rather than your team member just taking them to the vehicle, they need to start building rapport and listening to what the client has to say.

Client: “The reason I am looking at a large SUV is because I need it for business.”

You Team Member: “When you say you need it for business can you tell me more?

The client will then begin to tell your team member about their business and why they need a large SUV. It also allows the team member to ask more questions about possible personal use and so on. At the end of every statement or question posed by the client, your team member need to clarify exactly what the client means by asking, “Tell me more!

I have trained this simple word track for a long time. Team Members find it easy to use and it certainly helps them define a Client’s wants and needs and helps them down the path of building rapport and holding gross profit!

“Tell me more” …..Give it a try……



About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff