With 85%(1) of car buyers going to the Internet before the showroom to begin their shopping experience, dealerships nationwide are looking for the right model to maximize their sales and profits in a changing economy.

While extremely challenging, economic downturns are also a time when many organizations "reinvent" themselves. With this in mind, I'd like to share with you some of the pros and cons I've observed with respect to various operating models, including Internet to Floor Hand-Off, Integrated Showroom, and Business Development Centers.

Internet to Floor Hand-Off

In general, the hub-and-spoke hand-off from the Internet sales department to the floor sales team seems to be a model that dealers are migrating away from. In this scenario, Internet leads are assigned to the person on the floor with the best phone skills. The problem is that most Internet leads prefer to be contacted by email and the process from lead to appointment usually takes much longer than traditional leads.

Integrated Showroom: in sync with consumer trends

Based on consumer trends, many leading dealerships are focusing time and resources on an integrated showroom model. For many, Internet-originated sales have grown from 10-15% of overall sales to 35-40% in just a few years. Companies headed down this path, expect to ultimately have the entire store as part of the electronic showroom experience, as opposed to a separate Internet experience. The best way to identify your dealership’s online strengths and gaps is to mystery shop your own store on a regular basis. The majority of online car buyers (60%) do their research 90 days before buying a car. That means a sales consultant must build rapport and earn trust, not hard sell. The Internet affords the ability for you to “walk in the shoes” of your customers and see how they perceive your sales approach.

Business Development Centers

While we don't see a tremendous number of Business Development Centers (BDC) emerging, partly because of current capital constraints and partly because of the difficulty of using small-scale pilots to measure effectiveness, the companies most focused on this model are larger dealer groups concerned with economies of scale. With an average of 20–25% of Internet leads not being followed up, a centralized BDC model can offer a cost effective solution to this challenge. But the key is in ensuring the proper processes and oversight to achieve desired results.

The right model for you

How you structure your dealership to make the most of changing economic and consumer trends ultimately depends upon a number of variables including, size, tolerance for change, and leadership philosophy. Whichever model you choose, remember that the goals of the sales process remain the same. It's simply the techniques and processes that are distinct. But most important, never try to fit the consumer into your structure; structure yourself around what today's consumer wants and expects and success will be forthcoming.

(1)Source: JD Power

Jerry Petrotto is the vice president of sales for Black Book Online. For more information email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .