CRM: What is Your CRM Process?

1. Pg. 39
CRM: What is you
CRM Process?
Ralph Paglia
President
Automotive Media Partners, LLC

2. ATTRACT
INTERACT
RESPOND
SELL
SERVICE
RETAIN Average Monthly Lead Volume (24): 5,214
Average Monthly Internet Sales (24): 348
Annual Total Store Retail Sales (2): 9,200 & 11,000+

3. Do Car Buying Cycle Times Vary?
ATTRACT – INTERACT – RESPOND – SELL – SERVICE - RETAIN
While the overall average lead buying cycle (Lead Received to
Sale Date) is 13 days, there are variations depending on the time
of year. One factor kept appearing in my research 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. 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 sales have the shortest buying cycle at 7.7 days
•December sales have the longest buying cycle at 22 days

4. How long from new lead till they buy?
ATTRACT – INTERACT – RESPOND – SELL – SERVICE - RETAIN
Here is the break down for buying cycle times in
days, for each month³:
January 11.2 July 8.5
February 11.1 August 14.3
March 14.5 September 11.7
April 10.9 October 7.7
May 13.4 November 13.8
June 10.2 December 22
³Over 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.

5. Number of leads received
and vehicles sold each month¹
3.5% 9.2%
UV/Lead Ratio Avg. Close Ratio
57%
Response Rate
¹Source:
Nielsen,
Wards’s
Dealer
Business,
Automotive
News and
Forrester
Research

6. Response Time & Content
 How do we measure the actual impact of “What”
Internet Salespeople 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 the
results we get from our Lead Management Process?
Two critical control factors measured:
1. Timing correlation with Sales
2. Dealer Response Attributes

7. A: Increasing Closing Ratios is not “Just About”
Response Times…
Q: Why the variations?

8. Top 4 Dealer Response Attributes Purchase
Respondent
% of
Purchase*
Statistical
Ways to Correlation
Close Experienced by Customers s* who DID
NOT
among the
Leads who
Factor of
Response
More Sales
to Leads
within 24 hours of Submitting experience
the
DID
Experience
attribute
with Vehicle
Purchase
Received an Inquiry (Lead) attribute the attribute
Make Direct Phone Contact with Customer (after
#1 sending Email w/availability & prices) 11 17% 27%
#2 Send Price Quotes by Email to Customer 20% 27% 9
Contact Customer more than once by Email and
#3 Telephone (within First 24 Hours) 21% 25% 5
Make sure Customers are either Completely or Very
#4 Satisfied with the Lead Response 21% 24% 3
Sales and Lead Data Marketing research 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!
*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data

10. What’s the competition doing?

11. What’s the competition doing?

12. What’s the competition doing?
2006 Chevrolet CK15706 - Tahoe: 4WD
"Must Have" Options "Don't Want" Options
--------------------------------------------------------------------------
VIN / Order #: 1GNEK13Z66R128254
Event Code: 5000 Vehicle delivered to dealer
MSRP: $45,560

13. What’s the competition doing?

18. What’s the competition doing?
From: Nick Kinsey [mailto:bhscottsdalesales39@leadcrm.com]
Sent: Saturday, October 08, 2005 5:02 PM
To: ID@ralphpaglia.com
Subject: Bill Heard Chevrolet - Scottsdale - Welcome
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

24. ... 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.
•They will confirm the specifics of your vehicle request. Our invoice based pricing takes availability
and demand for any given vehicle into account.
•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.
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 sales@vanchevrolet.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

25. What’s the competition doing?

26. What’s the competition doing?
“Ralph Paglia-
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.”
• VIN# 1GNEC13T06R115718
• MSRP $44,950

27. Merge Fields built into templates
should be checked and edited
customer…
before sending to customer

28. 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!

29. 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…

30. What happens when we fail to
meet a customer’s expectations?

31. 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?

32. How important is timing?

33. How important are Price Quotes?

34. How important is customer satisfaction with lead
response and price in relation to getting them into the
dealership?

35. Let’s take a closer look at the facts
RE: The myth of the Internet Shopper submitting leads to
dozens of dealers
The average number of leads submitted by new
vehicle buyers in 2009 was 1.63
The average number of leads submitted by new
vehicle buyers in 2010 was 1.56
The average number of leads submitted by new
vehicle buyers in 2011 was 1.53
The average number of leads submitted by new
vehicle buyers in 2012 was 1.52
•*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, YTD 2012

36. “No Response Syndrome”
When customers receive initial email responses from dealers that
do not deliver perceived value, they follow their own “Email
Management Process”:
1. Delete the email message
2. Do not respond by email
3. Do not answer phone calls from dealership or return
messages left via answering machine
4. Future emails from same dealer are deleted without
being opened or responded to, and sender is marked as
spam source for filtering

37. The Science of using Email Templates
for improved direct contact ratios and sales results
Ensure professional content
Confirm availability
Quote prices
Offer alternatives
Provide value-added content
Be conversational – (“smile”)
Be clear and to the point
Manage customer expectations
Create desire
Create sense of urgency
Give reasons to choose dealership
Setup follow-up call
Ask for appointment - logically
Setup choice close
Offer Product Presentation

38. 5 Lead Management Action Items that Drive
Sales Close Rates 400% Higher*
1. Consumer received price quote(s)
by email within first 24 hours
2. Direct customer phone contact made
by Salesperson within first 24 hours
3. Salesperson confirmed availability of
multiple vehicles within first 24 hours
4. Salesperson showed genuine interest
in earning the customer’s business
5. Customer contacted more than once
within first 24 hours
2011 CarShopper study reconfirms close ratio impact factors *Source: Morpace 24 hour survey and RDR sales Data

39. Lead-to-Sales Close Rate
Improvement Action Items
Dealership LMP Review
 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

41. Sold Leads – First Response Examples

42. Sold Leads – First Response Examples

43. Actual Leads – First Response Examples

44. Sold Leads – First Response Examples

45. Actual Leads – First Response Examples

46. Actual Leads – First Response Examples

47. Pay attention to details in
outbound emails before hitting
the “Send” button!!!

48. New Autoresponse
validates customer
contact info and
seeks corrections

49. New Autoresponse invites
customer to visit
CourtesyChev.com by
providing direct links to
specific sections of value

54. How important are Phone #’s???
3 Phone Numbers! (Work/Home/Cell)

55. Lead Management
PROCESS 101
1. Automated Email Reply acknowledging receipt – Verify Customer
Contact Info & ask for more
2. 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
3. First Phone Call to customer: verify receipt of email and schedule
a demo/test drive appointment
4. Appointment Confirmation by Email and Telephone
5. Instruct customer to check in at reception desk, ASM reviews
agenda upon customer arrival, introduces ISS who sells &
delivers the vehicle
6. Follow-up Email that sets the stage for referrals and additional
business, to be routed to ISS who sold car

56. New Lead Phone Follow-up
First Call After Sending Personalized Email
Purpose:
1. 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)
2. Establish what is most important to your customer by following
the Internet Price-Quote Follow-up word track
3. Set the stage for your Customer’s expectations…
Create a buying “Plan” during the conversation
4. Schedule appointment for a vehicle presentation
and test drive at dealership or customer’s location
5. Follow-up with email confirmation of appointment
6. Prepare for appointment by locating vehicle(s)
and ensuring their availability for demo drive

57. 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

58. …The Bottom Line
1. Customer has spent up to 6 hours in researching a vehicle online before
sending us a lead
2. Selected Courtesy Chevrolet as their dealer
3. Requested a price quote on a vehicle
They are much likely to buy from if you…
1. Respond quickly – without “fluff and puff”
2. Confirm vehicle availability – with alternatives
3. Provide a fair price quote – multiple vehicles
4. Contact them by phone – verify receipt of email

59. J.D. Power Vehicle Shopper
Behavioral Profiles¹
Internet Users Non-Internet Non-Internet
(IU) Shoppers (NIS) Users (NIU)
Time Investors 137 37 50
Product Experts 113 76 85
Price Sensitive 112 73 91
Dealerphobes 112 89 74
Empowered 100 96 103
Negotiators
1Profile Index of 100 equates to the industry average

60. Use Intelligent Lead Routing and Manage Your
Sales Opportunity Assignments…
“ROUND ROBIN” IS THE WORST LEAD ASSIGNMENT
SYSTEM EVER CREATED!
• Multiple Lead Routing Addresses to Route by Source and Type
• MANAGE Lead Assignments for Optimum Sales Rates (be fair to the dealer)
• High Value Leads should be reviewed for Salesperson Reassignment
• Create Teams to Handle Affinity Group Referrals (Costco, TrueCar, etc.
• Reassign New Leads when they are not Responded to Promptly
• Limit Number of Leads Assigned to each Salesperson
• Over 40% of Vehicles Sold to New Car Leads are… Used Cars!

61. Proactive Sales Management
LMP Supervision Responsibility
Dormant
Leads

62. Proven Effective LMP
Lead Management Process (LMP):
Automated Reply w/Info Validation Request
First Email w/Price Quotes on 4 Vehicles
Phone follow-up to verify receipt of email…
and to get a demo/test drive appointment!
Email Confirmation when Voicemail is left
Get second email address during phone call
Outbound Follow-up Calls made by BDC
Inbound eSales Calls handled by BDC
Appointment Reception sets stage for the Sale