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Using technology to create additional sales

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  • 1. The Human Touch:Using Technology to Create an Extra SalesForce in Your Dealership and Build LongLasting Customer RelationshipsLenny McGinleyVice President, Dealer SalesOctober 7, 2008
  • 2. 2008 NEW-VEHICLE SALES FORECAST 17.5 17 Lowest figure 16.5 since 1992! 16 15.5 Nothing screams the need 15 for effective follow-up and 14.5 closing process than the realities of the sales climate 14 13.5 02 03 04 05 06 07 08 22
  • 3. DEALERS ARE SEEING SALES SLIDE Everyone knows the economy has seriously impacted new vehicle sales. Please estimate your overall new vehicle sales today versus a year ago. State of New-Vehicle Sales as Reported by Dealers Sales Down 55% Stayed about the same 18% 45% of dealers reported new vehicle sales were flat or up versus a year ago Sales Up 27% 0% 10% 20% 30% 40% 50% 60% Source: Survey.com, September 2008 33
  • 4. THERE IS LIGHT AT THE END OF THE TUNNEL When do you think the new vehicle market will significantly recover or really start to turn around? Majority of Dealer’s Expect the Market to Turn Around in 2009 Later in 2008 9% First half 2009 29% Second half 2009 34% 2010 13% 2011 3% 63% of dealers expect the market to turn around Not in the forseeable future 2% by the end of 2009 Not sure 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: Survey.com, September 2008 44
  • 5. WHEN THE GOING GETS TOUGH THE TOUGH GET GOING What’s the MOST important thing helping you (or you think will help you) during the economic downturn? Better follow-up processes and processes to convert leads into sales 50% Targeted, measurable Internet marketing 21% The #1 focus for (leads, used, etc.) a dealership is follow-up processes Used vehicle sales 17% and lead conversion processes Service and aftermarket sales 13% 0% 10% 20% 30% 40% 50% 60% Source: Survey.com, September 2008 55
  • 6. WHERE ARE DEALERS TODAY IN THEIR FOLLOW-UP AND LEAD CONVERSION PROCESSES? A ton of lost opportunities…and lost sales… • 90% of ALL car buyers use the Internet to research a vehicle* • 63% of ALL car buyers now request price quotes online** • BUT More than 30% of leads go completely UNANSWERED** Too few leads converting...too many missed sales and losing business to the dealership down the street… Sold at “intended” dealership 100% 100% 10% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 90% 40% 40% Sold at “other” 30% 30% dealership 55% 20% Of leads 20% 10% converted 10% to a sale 0% 0% All New Vehicle Leads All Leads Converted to Sales * Outsell Research 1/2007 ** 2007 Dealer eBusiness Performance Study-The New Buying Influences 66
  • 7. FIRST: SPEED OF RESPONSE Importance Only Increasing with Each Year – Car Shoppers Less Willing to Wait 34% of car buyers expect a 83% of car buyers expect a response in less than 4 response in hours – up from 31% in ‘07 less than 24 hours Required Speed of Response From 8% 10% 16% 49% 12% Dealer/OEM to Consumer Query (% of consumers saying) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Immediately <1 hour 1-4 hours <24 hours 24-48 hours More than 48 hours Dont know Source: Cars Online Study 07/08, CapGemini 77
  • 8. DISCONNECT BETWEEN DEALERS AND CONSUMERS Response Within 60 Minutes Dealer Perception • 78% of dealers surveyed say their 100% dealership followed up on leads with 78% a personal response within an hour 50% 21% Consumer Perception • 21% of consumers indicated that Dealers Consumers they received a response from the dealership within an hour Source: Survey.com, October 2007 and Autobytel Internal Survey, 6/07-10/07 88
  • 9. FAST RESPONSE Response is Critical What Will Consumers Do If You Take Too Long? • In-market customers are Walkaway!!! 60% the most impatient – 51% demand a response 50% within 4 hours or less 40% 30% • 24% of leads close within 51% 1-10 days 20% 10% 25% 0% Look for another dealer Look for another manufacturer and/or dealer Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences 99
  • 10. WHAT KIND OF TECHNOLOGY ENABLES THAT LIGHTENING-LIKE RESPONSE? Lead notification programs.. • 53% of dealers now subscribe to a lead notification program, which instantaneously alerts dealers to an incoming lead • 83% of the top performing dealers have processes in place to phone immediately after receiving a lead High levels of satisfaction ... • Two-thirds of subscribing dealers “completely agree” that lead notification programs work well and believe that they are worth participating in Sources: J.D. Power DSOBS press release, August 2008 1010
  • 11. FASTER RESPONSE = HIGHER CLOSING RATIOS A quick response from a dealer is critical to high closing ratios • Dealers responding to Internet customers within an hour have a 25% higher closing ratio • When a brand responds to a customer inquiry within 20 minutes, conversion rates are doubled Sources: Third-Party Study and Capgemini Study of European automaker -Cars Online 07/08 1111
  • 12. LEAD NOTIFICATION PROGRAM BEST PRACTICES • Designated cell phone number as #1 option to call • Whisper feature to speak loud, clear and slow with customer information • If using land line as optional number, develop process as to how to handle calls Source: J.D. Power DSOBS, 2007 1212
  • 13. IMMEDIATE LEAD NOTIFICATION PROGRAM EXAMPLE OF HOW IT SHOULD WORK Automated Operator Request Make the connection Submitted Your phone rings! The customer be connected to your customer Press “1” to submits a A request has come in! Purchase Request Get the details from your home, office or mobile phone! “Tim Rogers. Please hold for message from Bill Smith. You have received a new car lead from Autobytel. 1313
  • 14. RAPID RESPONSE CASE STUDIES • Frankel Acura (2/08): – Faster response times – Average response time is 20 minutes faster – Closing ratios with showroom appointments increase from 75% to 85% – Overall sales increase 5-10% – More than 50% of cars are sold using Rapid Response • Castle Toyota/Scion’s results (10/07): – 52% higher closing ratios on customers contacted through Rapid Response – 17-30 additional Internet sales per month – Improved team morale and lower employee turnover • George Chevrolet’s results (2/07): – Closing ratios improved 300% – Car sales through Autobytel have doubled – Customer contact rates improved significantly 1414
  • 15. DID YOU KNOW… On average, it takes 4.27 attempts to reach a live person on the phone Source: eLeads CRM 1515
  • 16. SO MANY LEADS, SO LITTLE STAFF Average Monthly Dealer Web Inquiries/Leads 400 350 Increase of 300 300% 250 200 150 320 100 50 96 0 2001 2006 Source: J.D. Power DSOBS, 2007 1616
  • 17. LIVE CALL PROGRAM BEST PRACTICES • Calls derived from script specifically designed to: – Gather information / pulse of consumer and their intent to purchase a vehicle – Establish buying time line for consumer – Set the appointment • Dealership process implemented to work with VIP customers from start to finish • Designated person at dealership to welcome / hand off customer to internet department • Colored fax paper to indicate a VIP appointment 1717
  • 18. LIVE CALL VIP APPT SETTING PROGRAM EXAMPLE OF HOW IT SHOULD WORK Dealer to implement established follow-up process Dealer receives Dealer receives Automotive customer specialist talks to purchase request notification of customer customer and.. and attempts in-dealership VIP customer contact appointment • Scores Readiness to Buy • Sets in-dealership VIP appointment In-dealership VIP Appointment Customer Info 1818
  • 19. DEALERS WHO DROP LEADS AFTER A COUPLE OF WEEKS ARE DROPPING SALES Among leads that result in a sale… 43% close within 30 days 57% close after 30 days 30% 25% More leads convert into sales after 90 days than do 20% in first ten days! 15% 32% 24% 10% 15% 5% 11% 10% 8% 0% 1-10 11-20 21-30 31-60 61-90 90+ Average vehicle purchase sales cycle is 50 days * Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences *Outsell Study 2007 1919
  • 20. ACTIONS THAT CONVINCED CAR BUYERS TO VISIT DEALERSHIPS 60% 50% 40% 30% 59% 53% 50% 20% 29% 10% 22% 0% 5% Received email Answered Offered Competitive Received direct Did not questions competitive price for trade mail proactively price in contact me Highest performing dealers studied use brand/product info templates to tell the brand and dealer story in emails. Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences 2020
  • 21. EMAIL MARKETING PROGRAM BEST PRACTICES • Professional look and feel with dealership logo • Link to website • Establish a link to the direct contact at dealership • Email alert to dealership when consumer opens email • Reports indicating who / when / how many times a consumer has opened an email • Options for consumers to get a "test drive" or more information about the vehicle their looking for Source: J.D. Power DSOBS, 2007 2121
  • 22. AUTOMATED EMAIL MARKETING PROGRAM EXAMPLE OF HOW IT SHOULD WORK Send Dealer Branded Emails at Timely Intervals X X X X X 2222
  • 23. AUTOMATED EMAIL MARKETING PROGRAM EXAMPLE OF HOW IT SHOULD WORK • Prominent dealership branding • Engaging content/tips for the customer • Link to dealership website 2323
  • 24. SUMMARY 2424
  • 25. THANK YOU!

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