Objective Data Performance Based Pay Plans by Ralph Paglia - KPA Webinar June 7, 2012

1. How To Use Objective Data to Create
Performance Plans and Compensation Models
How important is it to build a team around performance objectives that
align with a dealer’s business strategy and are reflected in both
evaluations and pay plans?
Organizational development is more important than ever before…with many dealers
losing staff while cutting costs during the depths of the recession, those that are
growing their business need effective strategies, tools and tactics for attracting,
screening and hiring the best Internet sales professionals with the greatest chance of
achieving their own personal success, as well as sales productivity for the dealership.
This session will explore organizational development strategies, recruiting, screening,
hiring and training tools as well as the materials and processes that the most
successful dealers in America have been using for years, and are being used today as
a means of increasing success in the hiring process. Ralph Paglia will share the tools
and processes he has used to build some of the most successful Internet sales
departments in America while teaching attendees what the essential "must haves" are,
and how to get them when seeking to grow your sales departments into high
performance digital marketing to sales conversion engines.
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2. Courtesy Chevrolet in Phoenix, AZ became the
USA’s leading Internet retailer of new and certified
used Chevrolet vehicles… Human Resource
Development was the key (secret sauce) to success.

3. 90,000+ Outbound
Phone Calls / Month
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4. Document Roles & Responsibilities for All Positions
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12. Document Pay
Plan & Bonus
Structure that
reflects taller
Internet sales
funnel
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July 2006 Interactive Marketing

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July 2006 Interactive Marketing

15. Lead Volume puts pressure on response
times as a factor of staffing levels!

16. Organizational Structure Determines Process Capabilities
and Monitoring Requirements…
% of Statistical
Top 4 Ways Purchase
Purchase* Correlation
to Close Dealer Response Attributes Respondents*
among the Factor of
who DID
More Sales Experienced by Customers within NOT
Leads who Response
attribute
to Leads DID
experience
Received 24 hours of Submitting an Inquiry the attribute
Experience with Vehicle
Purchase
the attribute
Make Direct Phone Contact with Customer
#1 (after sending Email w/availability & prices) 17% 27% 11
#2 Send Price Quotes by Email to Customer 20% 27% 9
Contact Customer more than once by Email
#3 and Telephone (within First 24 Hours) 21% 25% 5
Make sure Customers are either Completely or
#4 Very Satisfied with the Lead Response 21% 24% 3
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17. Staffing Determines Process Execution Capabilities
and Monitoring Requirements…
Customer goes online
and submits Lead
Internet Sales Specialist ISS)
reviews lead, selects 4
vehicles for Price Quotes
Sends email with Quotes & Cars
BDC Staff makes initial phone call,
collects customer info, sets up an
appointment for the ISS
If no appointment, ISS
Contacts customer and seeks
appointment and/or agreement
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18. Lead Process Maps
should be indexed to
email templates,
phone scripts and
word tracks so that
dealership employees
have a “paint by
numbers” guide to
what is expected when
a lead is received.
This process map
focuses on the first 12
hours after a new lead
is received.

19. Lead Process Maps
should contain brief
explanations for the logic
and execution tips for
employees to review
before actually using the
email templates, phone
scripts and word tracks.
Actual template
illustrations make it easy
for dealership employees
to recognize the right
template or document
when they see it in their
CRM tool.

20. When Lead
Process Maps are indexed to
correspondingly numbered
email templates, phone
scripts and word tracks, the
dealership is far more likely to
execute the repetitious tasks
that create customer
experiences which correlate
with higher sales closing
ratios. The best process
maps break down email and
phone contact processes into
separate flows so that they
can be executed by different
resources when scaling up
lead volumes and
organization structures.

21. Have a defined process for “closing out”
unsold leads
Although many car guys will say they believe in the concept of following up until
prospects either buy or die… Large scale lead generation through highly effective
marketing practices requires that scarce resources be allocated to where they will
generate the most sales. Outsourcing followup on leads that have reached a
designated status (dormant) or assigning them to alternate resources such as a BDC
will allow ISS’s to stay focused on the 50% of the leads that buy, and do so within the
first 10 days
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22. LMP Scoring Index
Objective Review of
Dealership Employee Lead
responses encourages
consistency and creates a
numeric accountability –
an LMP Report Card for
Dealer or GM review…
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23. Nothing has more impact on results
than phone contact with the customer!
Outbound phone calls, ongoing phone follow-up and
responding to emails requires adequate staffing and skill levels
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24. Telephone Process
• 85% of Web visitors who contact the dealership
before coming into the showroom, use the phone
• Direct Phone contact (after responding to an
Internet lead by email), has the greatest impact on
increasing sales closing ratios
Phone Follow-Up Sales Strategy:
• Focus on having a set of objectives in front of us,
each time we make an email follow-up call
• Word Track Forms (scripts) are used for training
and collecting customer information during each call
that is made immediately after sending personalized
email response

25. Questions and Answers
Ralph Paglia
Cell: 505-301-6369
RPaglia@gmail.com
www.RalphPaglia.com
Reference Links:
http://ADMPC.com
http://slideshare.net/RalphPaglia
http://www.hirethewinners.com/adm
http://dealerELITE.net
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