CRM: What is you CRM Process?Ralph PagliaPresidentAutomotive Media Partners, LLCPg. 39ATTRACTINTERACTRESPONDSELLSERVICERETAINAverage Monthly Lead Volume (24): 5,214Average Monthly Internet Sales (24): 348Annual Total Store Retail Sales (2): 9,200 & 11,000+
Do Car Buying Cycle Times Vary?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 daysDecember sales have the longest buying cycle at 22 daysATTRACT INTERACT RESPOND SELL SERVICE - RETAINBreak3How long from new lead till they buy?ATTRACT INTERACT RESPOND SELL SERVICE - RETAINHere is the break down for buying cycle times in days, for each month:
July 8.5August 14.3September 11.7October 7.7November 13.8December 22January 11.2 February 11.1March 14.5April 10.9May 13.4June 10.2Over 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. Break4Number of leads received and vehicles sold each month
9.2%Avg. Close Ratio3.5%UV/Lead Ratio57%Response RateSource: Nielsen, Wardss Dealer Business, Automotive News and Forrester ResearchBreak5
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: Timing correlation with Sales Dealer Response AttributesResponse Time & ContentBreak6
A: Increasing Closing Ratios is not Just About Response TimesQ: Why the variations?Break7Top 4 Ways to Close More Sales to Leads ReceivedDealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry (Lead)Purchase Respondents* who DID NOT experience the attribute% of Purchase* among the Leads who DID Experience the attributeStatistical Correlation Factor of Response attribute with Vehicle Purchase#1Make Direct Phone Contact with Customer (after sending Email w/availability & prices)17%27%11#2Send Price Quotes by Email to Customer20%27%9#3Contact Customer more than once by Email and Telephone (within First 24 Hours)21%25%5#4Make sure Customers are either Completely or Very Satisfied with the Lead Response21%24%3Sales 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 DataBreak8
Whats the competition doing?Break10
Whats the competition doing?Break11
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 Whats the competition doing?Break12
Whats the competition doing?Break13
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 DirectorBill Heard Chevrolet - Scottsdale480-947-3535 From: Nick Kinsey [mailto:[email protected]] Sent: Saturday, October 08, 2005 5:02 PMTo: [email protected]: Bill Heard Chevrolet - Scottsdale - Welcome
Whats the competition doing?
Break23... 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 mustwork 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 [email protected] or visit us at http://www.vanchevrolet.comwhere you can view our new and resale inventory.
J. LatallInternet Sales DirectorVan Chevrolet - Scottsdale, AZ
Whats the competition doing?Break25
Ralph Paglia-I've included an equipment list and price quote on the2006 Chevrolet Tahoe you're intrested in. Your fleet/internet price is $37,424.27including all applicable rebates + taxes, license, doc fee.
VIN# 1GNEC13T06R115718 MSRP $44,950Whats the competition doing?Break26
Merge Fields built into templates should be checked and edited before sending to customerMerge Fields built into templates should be checked and edited before sending to customerMerge Fields built into templates should be checked and edited before sending to customerBreak27
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!Break28
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 workBreak29
What happens when we fail to meet a customers expectations?Break30
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?Break31
How important is timing?Break32
How important are Price Quotes?Break33
How important is customer satisfaction with lead response and price in relation to getting them into the dealership?Break34 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 Lets take a closer look at the factsRE: The myth of the Internet Shopper submitting leads to dozens of dealers*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis 1,500,000+ Leads, YTD 2012Break35
When customers receive initial email responses from dealers that do not deliver perceived value, they follow their own Email Management Process:Delete the email messageDo not respond by emailDo not answer phone calls from dealership or return messages left via answering machineFuture emails from same dealer are deleted without being opened or responded to, and sender is marked as spam source for filteringNo Response Syndrome Break36
Offer alternativesProvide value-added contentBe conversational (smile)Be clear and to the pointCreate desireCreate sense of urgencyGive reasons to choose dealershipAsk for appointment - logicallySetup choice closeEnsure professional contentConfirm availabilityQuote pricesSetup follow-up callManage customer expectationsThe Science of using Email Templates for improved direct contact ratios and sales resultsOffer Product PresentationBreak375 Lead Management Action Items that Drive Sales Close Rates 400% Higher*Consumer received price quote(s) by email within first 24 hoursDirect customer phone contact made by Salesperson within first 24 hoursSalesperson confirmed availability of multiple vehicles within first 24 hoursSalesperson showed genuine interestin earning the customers business Customer contacted more than once within first 24 hours*Source: Morpace 24 hour survey and RDR sales Data2011 CarShopper study reconfirms close ratio impact factorsBreak38Lead-to-Sales Close RateImprovement Action Items Dealership LMP Review Survey customers who didnt purchase
Review Lead Management Tool for a sampling of previous responses