Courtesy chevy lead management process v8d
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Courtesy chevy lead management process v8d Courtesy chevy lead management process v8d Presentation Transcript

  • Lead Management Process
  • Courtesy Chevrolet URL’s
    • HouseOfCourtesy.com
    • CourtesyChev.com
    • Cheap-Chevy.com
    • Chevrolet-Car.com
    • Chevrolet-GM.com
    • Chevrolet-New.com
    • Chevrolet-USA.com
    • Chevrolet-Used.com
    • Chevy-Deals.com
    • Chevy-AZ.com
    • ChevyAZ.com
    • Drive-Chevy.com
    • Latino-Chevy.com
    • LatinoChevy.com
    • My-Chevrolet.com
    • My-Chevy.com
    • ChevyPriceQuote.com
    • Chevy-Price-Quote.com
    • GM-Certified-Used.com
    • "I have no data yet. It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories instead of theories to suit facts."
          • Sir Arthur Conan Doyle (1859-1930), Sherlock Holmes
    Prepared by: Ralph Paglia Ralph_Paglia@reyrey.com 505-301-6369 Experiential Insight
  • Courtesy has an Internet Department… Does it have Integrated Marketing? “ Consumers are flocking to the Internet to initiate car buying, with 27% requesting a price quote from a dealer online. But the flood of 1.8 million leads monthly results in just a trickle of 165,000 sales, and an appalling lack of control means that this potentially profitable channel instead costs OEMs and dealers hundreds of dollars per vehicle it sells. Automakers and dealers must tighten lead management processes and merge online leads into their overall marketing strategies to boost sales and drive down costs.” - Mark Dixon Bünger; Forrester Research, 6/14/2005
  • 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
    • Consumers get bad or no response from dealers. Dealers simply drop as much as 50% of leads — they never respond to them at all. And even when they do, it’s frequently several days after the lead was submitted — average lead response time is still more than 48 hours for most OEMs we interviewed. ¹
    • OEM Quote: “Of our dealers, I’d say 10% really ‘get it,’ and about 30% are kind of trying. But 60% don’t even know where to begin — and don’t care.”
    Courtesy has an Internet Department… Does it use proven and effective Lead Management Process? ¹ Mark Dixon Bünger; Forrester Research, 6/14/2004
  • Attributes of Dealer Responses to Sales Leads and their Correlation, or Impact on Customer Satisfaction and Sales Closing Ratios Prepared by: Ralph Paglia [email_address] 505-301-6369
    • How do we measure the actual impact of “ What ” dealers do when they receive a lead?
    • How much are results effected by “ When ” they do it?
    • How do we measure the impact of timing on Lead Management Process?
    • Two critical control factors measured during multiple RCS programs:
    • Timing correlation with Sales
    • Dealer Response Attributes
    Response Time & Content
  • A: Increasing Closing Ratios is not “Just About” Response Times… Q: Why the variations?
  • Learn Why: www.AutomotiveDigitalMarketing.com
  • Learn Why: www.AutomotiveDigitalMarketing.com
  • *Survey Respondents received Emailed Survey invitations that were sent 24 hours after they had submitted an inquiry (Lead)… 77,000 Surveys Received during Q1, 2003 Impact of Dealer Response Attributes on Customer Satisfaction : 93% 21 37% 76% 39% Dealer Responded using Customer’s Preferred Communication Method 44% 34 30% 90% 60% Customer Received Price Quotes from Dealer 49% 27 24% 85% 61% Customer Contacted more than once by Email and Telephone 52% 38 34% 89% 55% Dealer Confirmed Availability of Vehicle(s) for Sale and Delivery 87% 53 69% 82% 13% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 12 24% 75% 51% Dealer Acknowledged Customer Request 59% 29 26% 84% 58% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of attribute with Customer Satisfaction GAP Completely or Very Satisfied who DID Experience the attribute Completely or Very Satisfied who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead
  • Impact of Dealer Response Attributes on Vehicle Purchase : *Survey Respondents who Purchased a Vehicle were identified via RDR data cross reference and match, Surveys sent 24 hours after lead submitted, sales tracked 90 days 93% 1 2% 23% 21% Dealer Responded using Customer’s Preferred Communication Method 44% 9 8% 27% 20% Customer Received Price Quotes from Dealer 49% 5 4% 25% 21% Customer Contacted more than once by Email and Telephone 52% 3 3% 24% 22% Dealer Confirmed Availability of Vehicle(s) for Sales and Delivery 87% 2 2% 23% 21% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 1 2% 23% 21% Dealer Acknowledged Customer Request 59% 11 9% 27% 17% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of response attribute with Vehicle Purchase GAP % of Purchase* among the Respondents who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead
  • Impact of Lead Response Attributes on Vehicle Purchase : *Survey Respondents who Purchased a Vehicle were identified via RDR data cross reference and match, Surveys sent 24 hours after lead submitted, sales tracked 90 days 93% 1 2% 23% 21% Dealer Responded using Customer’s Preferred Communication Method 44% 9 8% 27% 20% Customer Received Price Quotes from Dealer 49% 5 4% 25% 21% Customer Contacted more than once by Email and Telephone 52% 3 3% 24% 22% Dealer Confirmed Availability of Vehicle(s) for Sales and Delivery 87% 2 2% 23% 21% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 1 2% 23% 21% Dealer Acknowledged Customer Request 59% 11 9% 27% 17% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of response attribute with Vehicle Purchase GAP % of Purchase* among the Respondents who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead Learn why: www.AutomotiveDigitalMarketing.com
  •  
  • *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data RCS Marketing research (Q1, 2003) confirms the Best Practices collected during “Best In Class” Dealer Benchmark studies. How to sell more vehicles to customers that submit Internet leads… Without relying on opinion or seat of the pants management! Results Proven Best Practices #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 Attribute Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead)
  • *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data Marketing research (Q4, 2009) confirms the Best Practices collected during “Best In Class” Dealer Benchmark studies. How to sell more vehicles to customers that submit Internet leads… Without relying on opinion 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 Attribute Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead) Visit and Join: www.AutomotiveDigitalMarketing.com
    • 85% of Internet Leads are submitted by car buyers who submit ONE request to ONE dealer of that brand*…
    • 40% of Internet Leads are submitted by people who submit ADDITIONAL requests to other dealers of a different brand… On a different make and model vehicle .*
    • *Morpace Research/MSN Auto Dealer Lead Referrals; Lead Data Cross-Referencing Analysis – 88,000+ Leads, 2003
    Let’s take a closer look at the facts RE: The myth that dealers are competing with other dealers of the same brand when they get an Internet Lead…
    • The average number of leads submitted by new vehicle buyers in 2002 was 1.43
    • The average number of leads submitted by new vehicle buyers in 2003 was 1.36
    • The average number of leads submitted by new vehicle buyers in 2004 is 1.33 YTD
    • *Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, 2003
    Let’s take a closer look at the facts RE: The myth of the Internet Shopper submitting leads to dozens of dealers
    • On a model line basis, OEM supplied Internet Leads generate a $23 higher gross profit per unit sold than average PNVR
    • Dealers who compare their Internet Sales Gross Profit PVR with the dealership’s aggregate Gross PVR get a distorted number because of the difference in model mix of the sales pool being compared. Typical overall store sales include a higher percentage of High Demand models, relative to model mix of Internet Sales
    • *Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 2003
    Let’s take a closer look at the facts RE: The myth that Internet leads generate less profitable sales results
    • When customers receive initial email responses from dealers that do not deliver perceived value, they follow their own “Lead Management Process”:
        • Delete the email message
        • Do not respond by email
        • Do not answer phone calls from dealership or return messages left via answering machine
        • Future emails from same dealer are deleted without being opened or responded to
    “ 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 Proven Best Practices
  • 5 Lead Management Activities that Drive Lead-to-Closes at 4 times higher rate
    • Direct customer phone contact made by dealer within first 24 hours
    • Consumer received price quote(s) within first 24 hours
    • Dealer confirmed availability of multiple vehicles within first 24 hours
    • Dealers showed genuine interest
    • Customer contacted more than once within first 24 hours
    Source: Morpace 24 hour survey and RDR sales Data (new study reconfirms close rate impact factors)
  • Lead Close Rate Improvement Action Items
    • Courtesy LMP Audits
    • Survey customers who didn’t purchase
    • Review Lead Management Tool for a sampling of previous responses
    • Score first personalized responses using the eBusiness Evaluation System
  • Bottom Line
    • Customer has spent up to 6 hours in researching a vehicle online
    • Selected you as their dealer
    • Requested a quote on a vehicle
    • They are much likely to buy from you if you…
    • Respond quickly – without fluff and puff
    • Confirm vehicle availability – with alternatives
    • Provide a fair price quote – multiple vehicles
    • Contact them by phone – verify receipt of email
  •  
    • To verify that you have received this message, and because the information above is important and time sensitive, we will contact you by phone ASAP.  I would like to verify that you've received ALL THE INFORMATION YOU NEED and answer your questions on a direct and personal basis.
    • Courtesy Chevrolet’s goal is to provide people shopping for a car or truck with a streamlined and convenient way to make the process easier and more enjoyable than what it has been in the past… Because, that’s the way it should be. Here are a few direct links to some of our web services that are available online:
        • Courtesy Chevrolet New Vehicle Inventory
        • Courtesy Chevrolet Used Vehicle Inventory
        • Courtesy Chevrolet Online Financial Application
        • Courtesy Chevrolet Map and Door-to-Door Directions
    • I am looking forward to making it easy for you to drive a new Chevrolet!
  •  
    • Automated Email Reply acknowledging receipt – Verify Customer Contact Info & ask for more
    • 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 30 minutes
    • Successful Phone Call to customer that establishes a basic level of trust and results in an appointment
    • Appointment Confirmation by Email and Telephone
    • Instruct customer to check in at reception desk, manager review agenda upon customer arrival, introduce ISS who sells & delivers the vehicle
    • Follow-up Email that sets the stage for referrals and additional business, to be routed to ISM who sold car
    Lead Management PROCESS 101
  • Wolfe Automotive Group; Kansas City, MO DP: Jeff Wolfe IMD: Mark Vickery (Consultant:: Ralph Paglia) Wolfe Auto Group Internet Sales Linear Trendline Analysis First 19 months with Paglia LMP
  • 9/13 @ 11:54 AM
  • Thank you for your inquiry on the 2003 Honda Accord EX.  Below you will find information regarding the vehicle that most closely matches the vehicle you selected, along with other important information for you. You can view our entire inventory online at: www.jaywolfehonda.com   In addition, here are a few other vehicles we selected, based on your inquiry, that you may want to consider: Additionally, the manufacturer may offer special APR’s (interest rates) on select models that are subject to credit approval. Email Response Analysis Year-Make Model Invoice MSRP E-Price Stock # 2003 Honda Accord $19,900 $22,060 $20,400 H31155 Year-Make Model Invoice MSRP E-Price Stock # 2003 Honda Accord $15,407 $16,260 $15,907 available 2003 Honda Accord $17,698 $19,660 $18,195 H32068 2003 Honda Civic $15,094 $16,470 $15,194 H32098
  • First Call After Sending Personalized Response
    • 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)
    • Establish what is most important to your customer by following the Internet Price-Quote Follow-up word track from Reynolds Consulting
    • Set the stage for your Customer’s expectations… Create a buying “Plan” during the conversation
    • Schedule appointment for a vehicle presentation and test drive at dealership or customer’s location
    • Follow-up with email confirmation of appointment
    Purpose: 9/13 @ 12:32 PM - Received Call from Charla at Jay Wolfe Honda in LESS than ONE hour after receiving price quotes on 4 cars Phone Follow-up Analysis
  • The most successful eBusiness Dealers focus on scheduling an appointment by using a form that has a dual purpose of “Information Gathering Tool” and suggested Phone Script during each call… Let’s take a closer look at this tool and how it is used by dealers... Phone Follow-up Analysis Call Made Within 15 Minutes (secret sauce)
  • 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 (FUSS):
    • 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
    • Dedicated People who are held Accountable for measurable results that are tracked
    • Documented Processes that clearly identify the minimum tasks that must be executed
    • Performance Metrics that supply the dealer with execution compliance measurement
    • Coaching & Mentoring from experienced sources of results-based eBusiness knowledge regarding effective processes
    ROI from eBusiness Requires Managed Focus
  • Before Visiting First Dealer After Visiting First Dealer 89% of Internet Users Go Online Before Visiting a dealership 59% Go Online 3 weeks or more before visiting a dealership Based to IUs
  • Do Dealer web sites generate showroom traffic and phone calls… In addition to the Internet leads we’ve come to expect? 1 Based to total respondents 2 Based to those respondents who pre-contacted dealer by telephone or e-mail. Multiple responses allowed. All Internet Users (IU) Who Visited Dealer after visiting Dealer or OEM Web Site YES ¹ Pre-Showroom Visit Dealer Contact 1 Contact Method 2 Email ² Phone ² Dealers May Not Realize the Showroom Visit or Phone Call Originated from Integrated Marketing… Direct Showroom Visit 1
  • Internet Leads + Phone Leads + Showroom Visits = Integrated Marketing What does this mean? Internet Leads + Phone Leads + Showroom Visits = Integrated Marketing 2,564 1,928 [(200/.39)/ .21]x.79 436 (200/.39)x.85 200 1,924 1,447 [(150/.39)/ .21]x.79 327 (150/.39)x.85 150 1,282 964 [(100/.39)/ .21]x.79 218 (100/.39)x.85 100 641 482 [(50/.39)/ .21]x.79 109 (50/.39)x.85 50 Total Traffic (Lead+Phone +Showroom) Showroom Traffic from Dealer Web Site Visitors formula Phone Calls from Dealer Web Site formula Web Site Lead Volume
  • 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
  • Based to IUs * Small sample
  • Based to All IUs * Small sample
  • Courtesy Chevrolet
    • Lead Management Process (LMP):
    • Automated Reply w/Info Validation & Map
    • First Email w/Price Quotes on 4 Vehicles
    • Phone follow-up to verify receipt of email
    • Email Confirmation when Voicemail is left
    • Get second email address during phone call
    • Outbound Follow-up Calls made by BDC
    • Inbound Sales Calls handled by BDC
    • Appointment Reception Process