Dealerships spend a lot of money on leads. The bigger the store, the more money spent. And, added to that expense are staffing costs and the time and effort involved in trying to engage with consumers who submit the leads.
In the car shopping process consumers conduct a considerable amount of research and visit many different touch points. A major goal of any dealer’s digital advertising is to engage that consumer, capture their interest in a vehicle and get them onto their website. Typically, at that point, the consumer has narrowed their vehicle choice down to one the dealership has in stock, and the behavior indicates a low-funnel buyer.
Then the magic happens… and that customer converts on your website. But then the process grinds to a sickening halt.
Wait a minute – what the heck happens here — why do so few of these leads turn into actual sales? Something inevitably motivated that car shopper to fill in that form to get more information and initiate contact. So, where’s the problem?
We studied the process in many dealerships and found the problem lies in the fact that the average time for a lead to get into the CRM is 6-12 minutes. This is for a multitude of reasons including poor email providers, volume of requests being processed, etc. But the point is, it’s pretty inefficient.
The faster you obtain the lead information and contact the inquiring customer, the more likely that customer will still be sitting in front of their computer, perhaps even staring at the VDP they converted on! Each passing minute reduces the chance the customer is still in “car-shopping” mode, available to talk. The general rule of thumb is that the first person to get that customer on the phone gets the sale.
However, at most dealerships what happens is as follows: The Internet Manager or BDC team receives that lead in the CRM. Auto-responders get fired out and dealership employees start calling. But the customer does not answer the phone. The Internet Manager or BDC agent might make that initial outbound call within seconds of receiving the lead, but still fail to connect with the customer. Sadly, that lag of 6-12 minutes getting the lead into the CRM can quite simply destroy the sale.
Have you ever heard the saying that a chain is only as strong as its weakest link? The same applies to the digital world. The mechanics involved once a customer clicks that “submit” button typically go something like this:
Customer hits submit. Information is sent to website provider. Website provider sends the information to the dealership’s CRM in ADF/XML format. CRM provides dealer with the lead.
If the Internet Manager or BDC agent quickly connects with that lead, the customer is typically impressed and open to talk. It’s the time lag between a customer requesting information and being contacted that reduces contact percentages. It simply creates inefficient communication chains and a poor customer experience.
How can you tell if this is happening at your store? Test it yourself! Submit a lead and monitor how long it takes – on average – for a lead to go from your website into your CRM. But don’t stop there. In addition, monitor how fast someone on your staff reaches out. Both of these factors are vital to improving the time it takes to actually connect with a customer, and from there your overall closing rate.
Customers like a good experience. If you can quickly connect and provide relevant information, this starts building rapport and trust.
Don’t get caught out by a failure to communicate.
The sheer volume of leads many dealerships receive can be overwhelming. And, not only do they have to respond (hopefully quickly) to any new leads, they are also expected to follow up with those leads with a “buy or die” mentality. I can guarantee you that whoever is responsible for following up with leads can quickly be overwhelmed by their to-do list in the CRM.So, what do they do? Quite frankly, they cherry pick leads. They tend to place more focus on new leads, contacting and prioritizing them based on the few tidbits of information the customer enters when filling out the lead form.
To compound the problem, some dealerships fail to teach employees how to interact with these prospective car buyers to take them all the way down the funnel to a sale. This lack of correct training and processes can lead to salespeople pre-qualifying leads, wasting good prospects and leaving money on the table.
For example, let’s say an Internet Manager gets a lead. The customer has a 2017 Ford F-150 with 40,000 miles on it. The Internet Manager immediately believes this lead is a waste of time. Without further investigation they simply think the customer must be upside down on their loan. They may then contact them hesitantly, if at all. If they do reach out they perhaps begin the conversation with a negative attitude and then lose the sale due to lack of interest.
But wait a minute, for all they know the customer doesn’t owe anything on that truck. However, they have already made up their mind and pre-qualified themselves out of a sale. Rather than reaching out and aggressively attempting to contact the customer, they perhaps make one attempt, then move on to the next lead that just came in… and the cycle continues on.
Most salespeople are trained to pre-qualify customers in their normal sales process on the lot, asking exploratory questions to determine whether they should show the customer what they asked to see, or make a beeline into the showroom and have the customer fill out a credit application. But this mindset does not translate well to online leads.
Another part of the problem is that if the person at the dealership lacks sales experience, they quickly learn which leads are “hot” and which are not simply based on whether they are able to contact the customer or have tried a zillion times. Hell, I would probably get frustrated as well.
The point is that every lead is an opportunity and every opportunity should be treated and responded to the same way – quickly.
These days, it is not uncommon for a customer who plans to go car shopping THAT DAY to fill out a lead form on the Internet to see what responses they receive. When they don’t receive anything but auto-responders and templates (yes, they know that they are receiving templated responses), they simply go out and shop. And if you failed to respond they may very well go shop your competitor who DID respond.
So, firstly don’t pre-qualify your online leads, treat all leads as prospective car sales. And secondly, respond to them quickly and appropriately.
Otherwise you are losing sales and throwing money away on leads that are never followed up. How many times has your dealership sold a car to someone upside down, with challenged credit or who seems like a lost cause when they came onto the lot? I’m willing to bet that there are plenty of those instances. The same applies to online leads.
Treat every Internet lead as an opportunity. Treat them all the same and do so quickly. Establish a process and reward those that follow it.
Sometimes, the runt of the litter turns into the strongest dog in the pack. And those can be the dogs with the most potential, but the easiest to miss.