Digital Dealership Roadmap: How to Convert your Dealership to Maximize Profits

1. Digital Dealership Roadmap:How to Convert your Dealership to Maximize Profits

2. Joe Castle CEO Castle Auto Group SOCIALDEALER

3. Drowning in a Sea of Red Ink • In 2006-07 consistently losing $100K/month • Attended Seminars looking to improve digital results • This had become a Do or Die situation • Realized it was time to make the change "internally"

4. What is a "Digital Dealership?" What you will learn: • How the Organizational Structure needs to Change • How to Implement a new sales process around a digital world • How your advertising strategy will change • Results: What to expect in Sales and Profits

5. Why Digital wasn’t producing better results?? • I saw minor improvements but I believed there was much more • The traditional structure is not suited to a digital strategy to MAXIMIZE Results • Realized it was my structure • Go from selling 80 cars/month to 220 cars/month using the exact same tools

6. A "Traditional Dealership" Structure NOT EFFECTIVE! FRUSTRATION SETS IN

7. A "Traditional Dealership" Structure

8. A "DigitalDealership" Structure

9. A "DigitalDealership" Structure REPLACE FRUSTRATION WITH SATISFACTION

10. The Game has changed…so the Structure needs to Change • Its TIME to make a transition in the process • From people-dependent to process-dependent • More digital customer oriented focused • Easy to adapt to new products/technologies

11. Dirty Detail #1 : Leadership/Rollout • Vision • Employee Buy-In • Commitment • If you want to maximize ROI, this takes time • Be Prepared to Be Patient • You Need the Right People to carry this through • Every Employee needs to be trained on the new digital marketing strategy • Execution

12. Dirty Detail #2: Change in People/Pay Plans • Loss in Personnel/Shift in Roles • Kickback from Sales Consultants/Managers • Pay Plans will have to change • Headcount will rise • Total Personnel compensation remains the same

13. Dirty Detail #3: Measurement Changes Old Measurements: • Floor Traffic/Up Count • Test Drives • Closing Ratios New Measurements: • Appointments Set/Shown • Phone Calls • Vehicle Detailed Page Views (VDPs) • Website Traffic/Leads Generated • Social Media Traffic/Growth/Engagements New Habits: • Day-to Day Job Duties will be different for everyone • Holding Different people accountable • Different expectations than before

14. Other Changes you will see • Closing Ratios will skyrocket • Advertising Expenses Decrease • More Unity between Departments • Sales Responsibility • Overall Customer Experience • Better Foundation for Growth • Less Employee Turnover

15. Efficient Organization is greater than Superstar Employees A "Digital Structure" allows continuous improvement More Customer-Centric Organization Greater Employee Engagement

16. How Long Does all This Take? • 2-3 years minimum to implement this structure BUT…Once key changes are made: • Start Seeing results within 3 months • Growth occurs in 3-6 month buckets • 100 cars/month…then 120 cars…then 140 cars… • When you plateau, fine tune to get to next level

17. Where does all this get you? RESULTS! • Huge Change in Net Profit/Cash in Bank • ($100k)/mo. to + $300K/mo. NET PROFIT SWING • Advertising PVR drops from $400 to $100 • Consumer Satisfaction Increases • Sets the stage for growth and easy implementation

18. Thank You Go from Average to Exceptional throughOrganizational Change Joe Castle Phone: 877.326.7624 ext 81 Email: j.castle@socialdealer.com Twitter: @joe_castle