Professional Community for Automotive Marketers, Car Dealers, OEM and Suppliers
I am uploading several PPT slide decks that show the data driven, car buyer versus lost deals research on EXACTLY what dealership lead response attributes generate the highest probability of a sale being made by the dealership that recieves a "Request for Quote" new vehicle lead... Keep in mind that how dealers respond to Internet leads and the rate at which those leads end up buying a car rom the lead-receiving dealer versus other dealerships is the MOST STUDIED, measured, tracked, researched and otherwise analyzed aspect of the retail automotive sales industry... There REALLY is no mystery to what works, the real mystery is how to execute what works on a daily basis with every lead that a dealer receives!
Hey, go ahead and argue either way, in favor or against the processes shown in these slide deck files... I'll argue my case using the CSI-like evidence on what actually works best with anyone in the business! However, just remember what William Wrigley, the chewing gum tycoon once said: "If I have 2 Vice Presidents that always agree with each other, then i have 1 Vice President too many...:
I am attaching several spreadsheet files that can be easily modified and used to track and assess lead management response by sales professionals and by lead source...
Ralph, I agree with everything that you put forward here. I firmly believe that dealerships, with proper marketing and good processes, should be achieving lead to close ratios above 20% from their websites and third party display advertising. Good marketing will greatly effect the number of leads. Evaluating internet departments, I avoid snapshots for a panoramic view. Having moved from Dallas to Phoenix, I believe that this is a much less competitive market.
I do have some questions:
They are definitely past due on a CRM upgrade.
Ralph, any internet department will benefit from these processes. It is a sad testimony, to the state of our departments, that they already aren't.
I cannot agree more.
It's funny, my "business" is getting lead information from dealer's web visitors who would normally walk. My "job" as relationships develop with our dealer-members, is cross pollinating best practices. Just helping out if I can.
One day in my early career, I was simply calling our dealer-member body to meet them and introduce myself and get a feel for what everyone is happy about or what we might be weak on that we could improve. A dealer let me know that the leads that we provide with an appointment already made ("VIP Appointment") were 'bogus'. His beef was that we shouldn't collect the few bucks more that we do over and above a lead when our chat operators are able to get down the funnel a bit more to make a time and date appointment with the lead. "Very few show up", he said. So I noted that. I was not yet savvy enough to ask what his process was once he received a lead of this type.
A few calls later I spoke to another dealer just as passionate about our VIP Appointment (leads). I held my breath and squinted when I asked what he wanted to say about them. He said (paraphrase) "when you guys deliver the lead with a time and date appointment, I don't have my BDC follow that one up first, I have the desk manager call ASAP. He makes it clear to ask for him or his partner and that he will be involved in their deal and was going to be at a meeting (appointment, whatever) at that time but he has changed that, in order to be available for them and restates the time and date. Further he reiterates anything else he 'knows' about their goals from the chat transcript. We get 80% of those in! Thank you!"
Ralph, I have nothing scientific to back this stat up but the dealer was reading off some stat sheets and paused while he looked things up so it seemed legit! So I became an "expert" that day and started asking about processes related to this. Your ppt related to a lead and response time and all the other parts from getting correct telephone info to multiple quotes to the process with the receptionist are obviously tested and working well.
I just wanted to validate the response time aspect, the phone call piece and the 'making it personal' factor. And yes, just have a process!!!
So as I continue my cross pollination, being made a expert by who else? Our dealer-members, of course...I hear more of the same when there is success (I ask without holding my breath now) and I hear back from the ones that were having a low-show rate on these VIP Appointments that are appreciative for a suggested process and an obvious difference in show rate. They didn't need the "Glengarry Leads" after all!
(ps the original complaining dealer did what plenty were doing. His BDC was calling "leads" right away. The VIP Appointments were 'let be' since they already made an appointment. That's different now.)
I will now get to look like more of an expert with your uploads!
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We are Canadian based and I am embarrassed to say - just really beginning - thank you for the great info. We have 3 stores and want to set up a "real" BDC. We have hired a project manager to help us start up. I will definitely refer him to your site.