Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
Logging ups has never been more critical to dealership success. I mean every up, not just those moved some distance along the road to the sale before they walk or buy.
Only ups from whom the dealership obtains name, rank and serial number have currency. Only ups the dealership can contact again are of value to the business.
Every time an associate fails to log an up, his or her error costs the dealership thousands of dollars!
We know this by reverse comparison. Calls by CAR-Research’s certified Research Center to more than 167,000 consumers who walked from dealerships without purchasing show how potentially profitable it can be to capture every up.
This research showed that with the right follow-up effort, 33 percent of unsold customers will come back and allow the dealership another chance to close the deal. Sixty-seven percent of those who do come back will end up purchasing a vehicle from that dealership.
Logging every up should truly matter to the dealership. The numbers are compelling. On average, industry stats show, just 25 percent of dealership traffic is logged. This means 75 percent of potential business becomes vapor and thus lost opportunity. You cannot follow up with shoppers whose contact information is not logged!
Yet even with such potential, dealerships treat most shoppers incorrectly and fail to capture their log-up information. Either no effort is made by the sales associate to capture the up’s name and contact information or the associate rules out the up’s potential based on preconceived presumptions, or for any number of other reasons.
Thus, achieving a more perfect up-log rate may require closer management of staff, as the incentive is generally weak to log ups that don’t seem to be hot prospects. This might also be the right time to review the dealership’s written up-logging policy, one having specific consequences for staff that doesn’t comply.
J.D. Power notes that consumers today shop fewer dealerships before buying, just 1.4 dealerships, down from 4.5 in 2005.
This tightening cycle means 85 percent of vehicle shoppers are predisposed to buy a car the day they decide to go shopping, the CAR-Research study showed. According to JD Power, 78 percent of the time shoppers skip the Internet lead process and just drop in.
Here’s the opportunity to log every up while pulling out the stops – the right price, product, presentation and personality – to capture customer on their first visit. If not, they’ll be shopping the dealership down the street and buy there unless the first dealership follows up within 90 minutes and invites them back for a second chance at the sale.
How might dealership fortunes turn for you if 75 percent of a store’s traffic was pursued – and pursued using the right unsold strategies -- within 90 minutes of leaving the dealership? The numbers will astound you. I am always available to answer questions.