1. How to Increase your Internet Lead Closing Ratio Presented
by Scott Pechstein Vice President of Sales, Autobytel Page: 39
2. Internet Sales 20-group
3. Topics How we gathered our results What is influencing
buying behavior
4. Overview Over 5 million Autobytel internet leads sent to
Polk annually Polk matches leads to State Registration data for all
50 states This report was from leads submitted in Q1, 2013
Committed = Purchased the brand in the internet requestClose rate
by sourceCrossover between New and Used (submitted lead for New and
bought Used)Close rate by makeTime between lead submission and
purchaseCrossover between makes (submitted lead for Toyota and
bought Nissan)Lost sales report by dealer
5. Industry Influences Purchase behaviors have continue to
changeBrand ParityProduct ParityImproved on-line contentMerging of
Tier One and Tier Two brands Domestic Bankruptcies Recalls
TsunamiIncreased Marketing spendMore time spent researching on web
sites & inventoryLess loyal generations of consumersIndustry
quality awardsConsumer use of ratings & reviews
6. Industry Studies New Vehicle buyers spend 11.5 hours online
(Source: R.L.Polk/AutoTrader.com Automotive Buyer Influence Study)
37% of shoppers enter the market without a specific brand in mind
(Source: Compete Vehicle Cross Shopping Analysis, July 2012) 59% of
consumers dont decide which vehicle to buy until the last week
(Source: JDP 2012 New Auto shopper Study) New-vehicle shoppers
consider average of 3.3 vehicles up from 2012 (source: JDP 2013
Avoider Study) Baby Boomers only visit 1.9 dealers and overall
based on dealership experience all generations express a desire to
avoid salespeople in the future ( source: AutoTrader Next
Generation Car Buyer Study)
7. Why This Data is critical to dealers Autobytel base line
close rate is 16 - 25% If a dealer is closing less than the base
line they are losing sales and revenue
8. Buying Funnel The Buying FunnelNot Really Just Different
Research Consideration Lead Evaluate Vehicle 1Evaluate Vehicle
2Loyaltyis Dead PurchaseEvaluate Vehicle 3
9. Whats changed? Myth When a consumer submits an internet
lead, my competition is my fellow brand dealer in the area . . .
Truth The consumer is still shopping brands as the consideration
set is being finalized Consumers submit leads as a starting point
to begin the discovery and analysis of their consideration
set.
10. Lost Sales Dealer Reports Leads Purchased from Detailed
Dealers Purchases based on 1 month of leads and up to 3 months
registration period Lead Date Period: May 2013 Sales Match Period:
Lead Date + 90 Autobytel Dealer NameAnytown GMCTotal Number of
Purchased Purch. Assigned Dealer Purch. Other Dealer
Leads3314Dealer had 21% Close Rate but lost 7 additional sales7
CHEVROLET | CRUZE | 2013 CHEVROLET | EQUINOX | 2011 CHEVROLET |
SONIC | 2013 CHEVROLET | CAMARO | 2013 CHEVROLET | EQUINOX | 2013
GMC | ACADIA | 2013 CHEVROLET | SILVERADO | 2013Purch. Other
Dealer7 Main Street GMC Main Street Honda Premium ToyotaCHEVROLET |
EQUINOX | 2013 CHEVROLET | EQUINOX | 2011GMC of Anytown Import
KiaTOYOTA | PRIUS V | 2013 CHEVROLET | TRAVERSE | 2011 CHEVROLET |
EQUINOX | 2006 KIA | SPORTAGE | 2013Great GMCCHEVROLET | IMPALA |
2013Hometown Ford
11. Brand Defection - Demographics Submitted a New Car Purchase
Request Bought a different Make (New or Used) 53.61%Demographics
show variance in buying behaviors Based on Household incomeBased on
Age Head of HouseholdLess than $15,000 = 60.45%18 to 24 =
68.12%Over $150,000 = 49.85%55 to 64 = 51.28%Based on Gender Male =
51.44% Female = 54.19%
12. Brand Defection - Demographics Submitted a New Car Purchase
Request Bought a different Make (New or Used) 53.61%Demographics
show variance in buying behaviors Based on Household incomeBased on
Age Head of HouseholdLess than $15,000 = 60.45%18 to 24 =
68.12%Over $150,000 = 49.85%55 to 64 = 51.28%Based on Gender Male =
51.44% Female = 54.19%
13. Brand Defection - Demographics Submitted a New Car Purchase
Request Bought a different Make (New or Used) 53.61%Demographics
show variance in buying behaviors Based on Household incomeBased on
Age Head of HouseholdLess than $15,000 = 60.45%18 to 24 =
68.12%Over $150,000 = 49.85%55 to 64 = 51.28%Based on Gender Male =
51.44% Female = 54.19%
14. Brand Defection - Demographics Submitted a New Car Purchase
Request Bought a different Make (New or Used) 53.61%Demographics
show variance in buying behaviors Based on Household incomeBased on
Age Head of HouseholdLess than $15,000 = 60.45%18 to 24 =
68.12%Over $150,000 = 49.85%55 to 64 = 51.28%Based on Gender Male =
51.44% Female = 54.19%
15. Brand Defection Other factors Overall SUV 58.37%Overall Non
Luxury Car 54.43%Non Luxury Full Size SUV = 48.93%Non Luxury
Compact = 51.92%Non Luxury Mid Size SUV = 58.69%Non Luxury Mid Size
= 54.11%Non Luxury Compact SUV = 71.66%Non Luxury Sub Compact =
57.25%%Luxury Mid Size SUV = 80.70%Non Luxury Full Size =
65.99%GeographicNon Minority = 51.71%West = 51.58%Minority =
56.48%Midwest = 52.68%Asian = 47.25%Northeast = 54.61%Hispanic =
56.48%South = 56.03%African American = 59.72%
16. Brand Defection Other factors Overall SUV 58.37%Overall Non
Luxury Car 54.43%Non Luxury Full Size SUV = 48.93%Non Luxury
Compact = 51.92%Non Luxury Mid Size SUV = 58.69%Non Luxury Mid Size
= 54.11%Non Luxury Compact SUV = 71.66%Non Luxury Sub Compact =
57.25%%Luxury Mid Size SUV = 80.70%Non Luxury Full Size =
65.99%GeographicNon Minority = 51.71%West = 51.58%Minority =
56.48%Midwest = 52.68%Asian = 47.25%Northeast = 54.61%Hispanic =
56.48%South = 56.03%African American = 59.72%
17. Brand Defection Other factors Overall SUV 58.37%Overall Non
Luxury Car 54.43%Non Luxury Full Size SUV = 48.93%Non Luxury
Compact = 51.92%Non Luxury Mid Size SUV = 58.69%Non Luxury Mid Size
= 54.11%Non Luxury Compact SUV = 71.66%Non Luxury Sub Compact =
57.25%%Luxury Mid Size SUV = 80.70%Non Luxury Full Size =
65.99%GeographicNon Minority = 51.71%West = 51.58%Minority =
56.48%Midwest = 52.68%Asian = 47.25%Northeast = 54.61%Hispanic =
56.48%South = 56.03%African American = 59.72%
18. Brand Defection Other factors Overall SUV 58.37%Overall Non
Luxury Car 54.43%Non Luxury Full Size SUV = 48.93%Non Luxury
Compact = 51.92%Non Luxury Mid Size SUV = 58.69%Non Luxury Mid Size
= 54.11%Non Luxury Compact SUV = 71.66%Non Luxury Sub Compact =
57.25%%Luxury Mid Size SUV = 80.70%Non Luxury Full Size =
65.99%GeographicNon Minority = 51.71%West = 51.58%Minority =
56.48%Midwest = 52.68%Asian = 47.25%Northeast = 54.61%Hispanic =
56.48%South = 56.03%African American = 59.72%
19. Correlation Committed* / Loyalty Autobytel Committed Brands
Bought New SUBARU TOYOTA HONDA CHEVROLET NISSAN JEEP DODGE FORD
CADILLAC HYUNDAI Committed = bought the brand that the lead was
submitted for.
20. Correlation Committed* / Loyalty Autobytel Committed Brands
Bought New SUBARU TOYOTA HONDA CHEVROLET NISSAN JEEP DODGE FORD
CADILLAC HYUNDAIPolk Loyalty Ranking Q1 2013 FORD TOYOTA HONDA
CHEVROLET NISSAN MERCEDES-BENZ BMW SUBARU LEXUS HYUNDAICommitted =
bought the brand that the lead was submitted for.
21. Brand Defection Buying Patterns Buying Pattern after New
Car Lead Submission2012 Polk sales results
22. Brand Defection Buying Patterns Buying Pattern after New
Car Lead Submission2012 Polk sales results
23. New to Used Defection Submitted a New Car Purchase Request
Bought Used any make 40.23%Demographics show variance in buying
behaviorsBased on Household incomeBased on Age of Head of
HouseholdLess than $15,000 = 55.81%18 to 24 = 67.59%Over $150,000 =
28.52%55 to 64 = 33.74%
24. New to Used Defection Submitted a New Car Purchase Request
Bought Used any make 40.23%Demographics show variance in buying
behaviorsBased on Household incomeBased on Age of Head of
HouseholdLess than $15,000 = 55.81%18 to 24 = 67.59%Over $150,000 =
28.52%55 to 64 = 33.74%
25. New to Used Buying Pattern Buying Pattern after New Car
Lead Submission
26. New to Used Buying Pattern Buying Pattern after New Car
Lead Submission
27. Off-line Experience Baby Boomers visit 1.9 dealerships Gen
X visit 2.5 dealerships Gen Y visit 3.1 dealershipsBased on their
dealership experience, in the future they will avoid salespeople:
56% Gen Y 49% Gen X 37% Baby BoomersLess visits = more burden on
the internet lead process to drive visits (AutoTrader.com Next
Generation Car Buyer Study Sept 2013)
28. Off-line Opportunities Dealership Brand is featured Ability
to test drive and explore vehicle features and benefitsAbility for
a professional walk around of the vehicleSales Consultant can be a
vehicle consultant: Who will be driving the car?How will the car be
used?What features are important in a vehicle?Ability to profile
the consumer to lead them down a personalized vehicle presentation
New/Used/CPO Model Trim Colors Optional Equipment
29. Joe Verde An excerpt from the second edition of the
Autobytel Dealer Insight series How to determine the proper vehicle
for the consumer off-line (at the dealership)
30. On-line ExperienceWhat demographics and buying behavior
trends do we know about this consumer? How committed are they to my
brand? How can we give them the off-line dealership visit
experience? How do we create a need for them to visit my
dealership?
31. On-line Sales Consultant can be pigeon holed into being an
information provider: 1) Do you have the car I want? 2) What is the
price?When a consumer submits a lead WE MAKE THEM PICK A
YEAR/MAKE/MODEL. Is that the vehicle that really meets their needs?
November 21, 2013 Copyright (c) 2013 Autobytel Inc.
32. Traditional Best Practice Quick Response Time and
Continuous Follow up Why buy from me1Vehicle of interestAlternative
vehicle(s)23
33. Internet Process Needs to Change Why Buy BrandWhy buy from
meVehicle of interest123Alternativ e vehicle(s)4All used
options5One size fits all does not work emphasis needs to vary for
each deal
34. Joe Verde An excerpt from the second edition of the
Autobytel Dealer Insight series 86% of consumers drive off with a
different model, trim, color or options than they intended to buy
when they walked on the lot
35. Lead Submission vs. Purchase Variable factors Local Market
conditions and competition Demographics age, income, gender,
ethnicity, geography Brand being considered & Segment of
vehicle of interest What is in the garage Dealership salesperson
experience will cause less dealership visits in the future NEED TO
FOCUS ON BASIC GOAL OF GETTING THE CONSUMER TO VISIT THE
DEALERSHIP
36. What can you do? If Real Estate is about location,
location, location Internet Sales is about vehicle choices, vehicle
choices, vehicle choices Off-line you can see the customer and
easily probe for clues to buying behaviors that create a custom
vehicle presentation On-line you a professional, repeatable process
with phone scripts and e-mail templates that create a need for the
consumer to visit the dealership