Pg. 39CRM: What is youCRM Process?Ralph PagliaPresidentAutomotive Media Partners, LLC
ATTRACTINTERACTRESPOND SELLSERVICE RETAIN Average Monthly Lead Volume (24): 5,214 Average Monthly Internet Sales (24): 348 Annual Total Store Retail Sales (2): 9,200 & 11,000+
Do Car Buying Cycle Times Vary? ATTRACT – INTERACT – RESPOND – SELL – SERVICE - RETAINWhile the overall average lead buying cycle (Lead Received toSale Date) is 13 days, there are variations depending on the timeof year. One factor kept appearing in my research is that thetypical months considered to be the height of the buyingseason - June, July, and August - did not have shorter averagebuying cycles. Looking at lead buying cycles from dealerwebsites, which historically have higher closing ratios, theaverage time it took for a customer to buy after submitting alead was 10.9 days. December leads had the longest closingperiod of 22 days; and October had the shortest with 7.7 days.Further analysis could determine why there is such a hugedisparity 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
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 22³Over a 15-month period, Gilbert A. Chavez conducted an exhaustive analysis of leads - from the top third party lead generators, from amulti-franchised dealer website, and from four OEM/factory sites. Statistics from my research show that the average person who buys acar after submitting a purchase request does so within 13 days of the submission. Gilbert A. Chavez is an Internet sales and CRMconsultant.
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
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 Sales2. Dealer Response Attributes
A: Increasing Closing Ratios is not “Just About” Response Times…Q: Why the variations?
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 ResponseMore Sales to Leads within 24 hours of Submitting experience the DID Experience attribute with Vehicle PurchaseReceived 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
What’s the competition doing?From: Nick Kinsey [mailto:firstname.lastname@example.org]Sent: Saturday, October 08, 2005 5:02 PMTo: ID@ralphpaglia.comSubject: 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
... this note just verifies that your purchase request through Autobytel has been received and thankyou for choosing Van Chevrolet located at 8585 E. Frank Lloyd Wright Blvd. at Hayden Road in NorthScottsdale, 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. OurInternet/Fleet managers have been specially trained to stream-line the purchase process to save youboth time and money.•They will confirm the specifics of your vehicle request. Our invoice based pricing takes availabilityand demand for any given vehicle into account.•They will get you top dollar for your present vehicle. Our 60+ store network enables us to payhundreds or even thousands more than other dealerships.You must work with our Internet/Fleet managers only for this special pricing and we lookforward to earning your business!Our phone numbers for your convenience are 888-647-3066 or direct at 480-991-5192. Please directe-mail to email@example.com or visit us at http://www.vanchevrolet.com where you can viewour new and resale inventory.J. LatallInternet Sales DirectorVan Chevrolet - Scottsdale, AZ
What’s the competition doing?“Ralph Paglia- Ive included an equipment list and price quote onthe 2006 Chevrolet Tahoe youre intrested in. Yourfleet/internet price is $37,424.27 including allapplicable rebates + taxes, license, doc fee.”• VIN# 1GNEC13T06R115718• MSRP $44,950
Merge Fields built into templatesshould be checked and edited customer…before sending to customer
Will we generate this surveyresponse? 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 positiveimpact on raising sales closing rates than anythingelse an ISS can do using email! The follow-upphone call is key to making price quotes work…
What happens when we fail tomeet a customer’s expectations?
When we promise a customer that they will receivepricing information in exchange for their personaland confidential information… And, we then fail todeliver promptly and courteously after receivingthat info… What should we expect to sell?
How important is customer satisfaction with leadresponse and price in relation to getting them into the dealership?
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
“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
The Science of using Email Templatesfor 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
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 hours2011 CarShopper study reconfirms close ratio impact factors *Source: Morpace 24 hour survey and RDR sales Data
Lead-to-Sales Close RateImprovement 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
Pay attention to details inoutbound emails before hitting the “Send” button!!!
New Autoresponsevalidates customer contact info and seeks corrections
New Autoresponse invites customer to visit CourtesyChev.com by providing direct links tospecific sections of value
How important are Phone #’s???3 Phone Numbers! (Work/Home/Cell)
Lead ManagementPROCESS 1011. Automated Email Reply acknowledging receipt – Verify Customer Contact Info & ask for more2. 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 minutes3. First Phone Call to customer: verify receipt of email and schedule a demo/test drive appointment4. Appointment Confirmation by Email and Telephone5. Instruct customer to check in at reception desk, ASM reviews agenda upon customer arrival, introduces ISS who sells & delivers the vehicle6. Follow-up Email that sets the stage for referrals and additional business, to be routed to ISS who sold car
New Lead Phone Follow-up First Call After Sending Personalized EmailPurpose: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 track3. Set the stage for your Customer’s expectations… Create a buying “Plan” during the conversation4. Schedule appointment for a vehicle presentation and test drive at dealership or customer’s location5. Follow-up with email confirmation of appointment6. Prepare for appointment by locating vehicle(s) and ensuring their availability for demo drive
Telephone Process• 85% of Web visitors who contact the dealership beforecoming into the showroom, use the phone• Direct Phone contact (after responding to an Internet lead byemail), has the greatest impact on increasing sales closingratiosPhone Follow-Up Sales Strategy (FUSS):• Focus on having a set of objectives in front of us, each timewe make an email follow-up call• Word Track Forms (scripts) are used for training andcollecting customer information during each call that is madeimmediately after sending personalized email response
…The Bottom Line1. Customer has spent up to 6 hours in researching a vehicle online before sending us a lead2. Selected Courtesy Chevrolet as their dealer3. Requested a price quote on a vehicleThey are much likely to buy from if you…1. Respond quickly – without “fluff and puff”2. Confirm vehicle availability – with alternatives3. Provide a fair price quote – multiple vehicles4. Contact them by phone – verify receipt of email
J.D. Power Vehicle ShopperBehavioral 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 Negotiators1Profile Index of 100 equates to the industry average
Use Intelligent Lead Routing and Manage YourSales 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!
Proven Effective LMPLead 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