Courtesy Chevrolet Sales Lead Management ProcessCourtesy Chevrolet Sales Lead Management Process
ATTRACT INTERACT RESPOND SELL SERVICE RETAIN Courtesy Chevrolet Internet Sales Team Strategy Meeting and Training Session
While the overall average lead buying cycle is 13 days, there are variations depending on the time of year. One thing in my research that I found surprising is that the typical months considered to be the height of the buying season - June, July, and August - did not have shorter average buying cycles than I originally hypothesized. Looking at lead buying cycles from dealer websites, which historically have higher closing ratios, the average time it took for a customer to buy after submitting a lead was 10.9 days. December leads had the longest closing period of 22 days; and October had the shortest with 7.7 days. Further analysis could determine why there is such a huge disparity from month to month. October had the shortest buying cycle at 7.7 days - so this is your month! ³ Buying Cycles Vary by the Month ³ Gilbert A. Chavez is an Internet sales and CRM consultant. He can be reached by email at [email_address] or by phone at (505) 622-1952.
How long from new lead till they buy? Here is the break down for buying cycle times in days, for each month³: ³ Over a 15-month period, Gilbert A. Chavez conducted an exhaustive analysis of leads - from the top third party lead generators, from a multi-franchised dealer website, and from four OEM/factory sites. Statistics from my research show that the average person who buys a car after submitting a purchase request does so within 13 days of the submission. Gilbert A. Chavez is an Internet sales and CRM consultant. 22 December 13.8 November 7.7 October 11.7 September 14.3 August 8.5 July 10.2 June 13.4 May 10.9 April 14.5 March 11.1 February 11.2 January
Number of leads received and vehicles sold each month ¹ ¹ Source: Nielsen, Wards’s Dealer Business , Automotive News and Forrester Research 9.2% Avg. Close Ratio 3.5% UV/Lead Ratio 57% Response Rate
<ul><li>How do we measure the actual impact of “ What ” Internet Salespeople do when they receive a lead? </li></ul><ul><li>How much are results effected by “ When ” they do it? </li></ul><ul><li>How do we measure the impact of timing on the results we get from our Lead Management Process? </li></ul><ul><li>Two critical control factors measured: </li></ul><ul><li>Timing correlation with Sales </li></ul><ul><li>Dealer Response Attributes </li></ul>Response Time & Content
A: Increasing Closing Ratios is not “Just About” Response Times… Q: Why the variations?
*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data Recent Marketing research (Q1, 2005) confirms the Lead Management Practices collected during “Best In Class” Dealer Benchmark studies. How to sell more vehicles to customers that submit Internet leads… Without relying on opinions or seat of the pants management! #4 #3 #2 #1 Top 4 Ways to Close More Sales to Leads Received 11 27% 17% Make Direct Phone Contact with Customer (after sending Email w/availability & prices) 9 27% 20% Send Price Quotes by Email to Customer 5 25% 21% Contact Customer more than once by Email and Telephone (within First 24 Hours) 3 24% 21% Make sure Customers are either Completely or Very Satisfied with the Lead Response Statistical Correlation Factor of Response attribute with Vehicle Purchase % of Purchase* among the Leads who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry (Lead)
From: Nick Kinsey [mailto:firstname.lastname@example.org] Sent: Saturday, October 08, 2005 5:02 PM To: ID@ralphpaglia.com Subject: Bill Heard Chevrolet - Scottsdale - Welcome What’s the competition doing? Ralph: We have received your email inquiry about a Chevrolet Tahoe 4wd 4-dr. This automatic response will be followed by a detailed email offering you availability & pricing information. Thanks for your interest. Nick Kinsey Assistant Internet Director Bill Heard Chevrolet - Scottsdale 480-947-3535
<ul><li>... this note just verifies that your purchase request through Autobytel has been received and thank you for choosing Van Chevrolet located at 8585 E. Frank Lloyd Wright Blvd. at Hayden Road in North Scottsdale, AZ (just west of the Loop 101 North). Our Internet/Fleet department is committed to providing you, the Internet consumer, a simple, efficient and enjoyable vehicle buying experience. We strive to exceed your expectations. Our Internet/Fleet managers have been specially trained to stream-line the purchase process to save you both time and money. </li></ul><ul><li>They will confirm the specifics of your vehicle request. Our invoice based pricing takes availability and demand for any given vehicle into account. </li></ul><ul><li>They will get you top dollar for your present vehicle. Our 60+ store network enables us to pay hundreds or even thousands more than other dealerships. </li></ul><ul><li>You must work with our Internet/Fleet managers only for this special pricing and we look forward to earning your business! Our phone numbers for your convenience are 888-647-3066 or direct at 480-991-5192. Please direct e-mail to email@example.com or visit us at http://www.vanchevrolet.com where you can view our new and resale inventory. J. Latall Internet Sales Director Van Chevrolet - Scottsdale, AZ </li></ul><ul><li> </li></ul>What’s the competition doing?
<ul><li>“ Ralph Paglia- </li></ul><ul><li> I've included an equipment list and price quote on the 2006 Chevrolet Tahoe you're intrested in. Your fleet/internet price is $37,424.27 including all applicable rebates + taxes, license, doc fee.” </li></ul><ul><li>VIN# 1GNEC13T06R115718 </li></ul><ul><li>MSRP $44,950 </li></ul>What’s the competition doing?
Merge Fields built into templates should be checked and edited before sending to customer… Merge Fields built into templates should be checked and edited before sending to customer Merge Fields built into templates should be checked and edited before sending to customer…
Will we generate this survey response? Or,………… After 10 hours, a lead is worth next to nothing! Not sending price quotes to “Request Quote” leads drops sales closing ratio by over 8 points!
Will we generate this? And, get the sale.…… Leads responded to with a price quote within 1 hour close at DOUBLE the rate of those responded to in 5 hours! Sending price quotes by email has more positive impact on raising sales closing rates than anything else an ISS can do using email! The follow-up phone call is key to making price quotes work…
What happens when we fail to meet a customer’s expectations?
When we promise a customer that they will receive pricing information in exchange for their personal and confidential information… And, we then fail to deliver promptly and courteously after receiving that info… What should we expect to sell?
How important is customer satisfaction with lead response and price in relation to getting them into the dealership?
<ul><li>The average number of leads submitted by new vehicle buyers in 2002 was 1.43 </li></ul><ul><li>The average number of leads submitted by new vehicle buyers in 2003 was 1.36 </li></ul><ul><li>The average number of leads submitted by new vehicle buyers in 2004 was 1.33 </li></ul><ul><li>The average number of leads submitted by new vehicle buyers in 2005 is 1.32 YTD </li></ul><ul><li>*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, YTD 2005 </li></ul>Let’s take a closer look at the facts RE: The myth of the Internet Shopper submitting leads to dozens of dealers
<ul><li>When customers receive initial email responses from dealers that do not deliver perceived value , they follow their own “Email Management Process”: </li></ul><ul><ul><ul><li>Delete the email message </li></ul></ul></ul><ul><ul><ul><li>Do not respond by email </li></ul></ul></ul><ul><ul><ul><li>Do not answer phone calls from dealership or return messages left via answering machine </li></ul></ul></ul><ul><ul><ul><li>Future emails from same dealer are deleted without being opened or responded to, and sender is marked as spam source for filtering </li></ul></ul></ul>“ No Response Syndrome”
Offer alternatives Provide value-added content Be conversational – (“smile”) Be clear and to the point Create desire Create sense of urgency Give reasons to choose dealership Ask for appointment - logically Setup choice close Ensure professional content Confirm availability Quote prices Setup follow-up call Manage customer expectations The Science of using Email Templates for improved direct contact ratios and sales results Offer Product Presentation
5 Lead Management Activities that Drive Lead-to-Sales conversion at 400% higher rate* <ul><li>Consumer received price quote(s) by email within first 24 hours </li></ul><ul><li>Direct customer phone contact made by Salesperson within first 24 hours </li></ul><ul><li>Salesperson confirmed availability of multiple vehicles within first 24 hours </li></ul><ul><li>Salesperson showed genuine interest </li></ul><ul><li>Customer contacted more than once within first 24 hours </li></ul>*Source: Morpace 24 hour survey and RDR sales Data (new 2005 study reconfirms close ratio impact factors)
Lead-to-Sales Closing Rate Improvement Action Items <ul><li>Courtesy LMP Review </li></ul><ul><li>Survey customers who didn’t purchase </li></ul><ul><li>Review Lead Management Tool for a sampling of previous responses </li></ul><ul><li>Score first personalized responses using the eBusiness Evaluation System </li></ul>
Actual Leads – First Response Examples Pay attention to details in outbound emails before hitting the “Send” button!!! Pay attention to details in outbound emails before hitting the “Send” button!!!
New Autoresponse validates customer contact info and seeks corrections
New Autoresponse invites customer to visit CourtesyChev.com by providing direct links to specific sections of value
3 Phone Numbers! (Work/Home/Cell) How important are Phone #’s???
<ul><li>Automated Email Reply acknowledging receipt – Verify Customer Contact Info & ask for more </li></ul><ul><li>Personalized Email within 20 minutes of business day that provides price quotes on 4 vehicles and sets stage for a follow-up telephone call within 15 minutes </li></ul><ul><li>First Phone Call to customer: verify receipt of email and schedule a demo/test drive appointment </li></ul><ul><li>Appointment Confirmation by Email and Telephone </li></ul><ul><li>Instruct customer to check in at reception desk, ASM reviews agenda upon customer arrival, introduces ISS who sells & delivers the vehicle </li></ul><ul><li>Follow-up Email that sets the stage for referrals and additional business, to be routed to ISS who sold car </li></ul>Lead Management PROCESS 101
First Call After Sending Personalized Email <ul><li>Verify customer has received the email with price quotes on 4 vehicles. If relevant, obtain customer’s “REAL” email address and schedule a follow-up call after re-sending quotes to new email address (work) </li></ul><ul><li>Establish what is most important to your customer by following the Courtesy Chevrolet Internet Price-Quote Follow-up word track </li></ul><ul><li>Set the stage for your Customer’s expectations… Create a buying “Plan” during the conversation </li></ul><ul><li>Schedule appointment for a vehicle presentation and test drive at dealership or customer’s location </li></ul><ul><li>Follow-up with email confirmation of appointment </li></ul><ul><li>Prepare for appointment by locating vehicle(s) and ensuring their availability for demo drive </li></ul>Purpose: New Lead Phone Follow-up
Telephone Process <ul><li>85% of Web visitors who contact the dealership before coming into the showroom, use the phone </li></ul><ul><li>Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios </li></ul><ul><li>Phone Follow-Up Sales Strategy (FUSS): </li></ul><ul><li>Focus on having a set of objectives in front of us, each time we make an email follow-up call </li></ul><ul><li>Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response </li></ul>
… The Bottom Line <ul><li>Customer has spent up to 6 hours in researching a vehicle online before sending us a lead </li></ul><ul><li>Selected Courtesy Chevrolet as their dealer </li></ul><ul><li>Requested a price quote on a vehicle </li></ul><ul><li>They are much likely to buy from Courtesy if you… </li></ul><ul><li>Respond quickly – without “fluff and puff” </li></ul><ul><li>Confirm vehicle availability – with alternatives </li></ul><ul><li>Provide a fair price quote – multiple vehicles </li></ul><ul><li>Contact them by phone – verify receipt of email </li></ul>
Vehicle Shopper Behavioral Profiles ¹ 1 Profile Index of 100 equates to the industry average Internet Users (IU) Non-Internet Shoppers (NIS) Non-Internet Users (NIU) Time Investors 137 37 50 Product Experts 113 76 85 Price Sensitive 112 73 91 Dealerphobes 112 89 74 Empowered Negotiators 100 96 103
Managing Your Assigned Leads; New Leads / Not Yet Responded
Managing Your Assigned Leads; Emails Received / Not Yet Responded
Managing Your Assigned Leads; Scheduled Telephone Appointments / Completed
Proactive Sales Lead Management Responsibility Dormant Leads
Courtesy Chevrolet <ul><li>Lead Management Process (LMP): </li></ul><ul><li>Automated Reply w/Info Validation Request </li></ul><ul><li>First Email w/Price Quotes on 4 Vehicles </li></ul><ul><li>Phone follow-up to verify receipt of email… and to get a demo/test drive appointment! </li></ul><ul><li>Email Confirmation when Voicemail is left </li></ul><ul><li>Get second email address during phone call </li></ul><ul><li>Outbound Follow-up Calls made by BDC </li></ul><ul><li>Inbound eSales Calls handled by BDC </li></ul><ul><li>Appointment Reception sets stage for the Sale </li></ul>