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The Human Touch:Using Technology to Create an Extra SalesForce in Your Dealership and Build LongLasting Customer Relationships
Lenny McGinleyVice President, Dealer SalesOctober 7, 2008
22
2008 NEW-VEHICLE SALES FORECAST
13.5
14
14.5
15
15.5
16
16.5
17
17.5
'02 '03 '04 '05 '06 '07 '08
Lowest figure since 1992!
Nothing screams the needfor effective follow-up andclosing process than the
realities of the sales climate
33
DEALERS ARE SEEING SALES SLIDE
Source: Survey.com, September 2008
Everyone knows the economy has seriously impacted new vehicle sales.Please estimate your overall new vehicle sales today versus a year ago.
27%
18%
55%
0% 10% 20% 30% 40% 50% 60%
Sales Up
Stayed about the
same
Sales Down
State of New-Vehicle Sales as Reported by Dealers
45% of dealers reportednew vehicle sales were flat
or up versus a year ago
44
Source: Survey.com, September 2008
When do you think the new vehicle market will significantly recoveror really start to turn around?
10%
2%
3%
13%
34%
29%
9%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Not sure
Not in the forseeable future
2011
2010
Second half 2009
First half 2009
Later in 2008
Majority of Dealer’s Expect the Market to Turn Around in 2009
THERE IS LIGHT AT THE END OF THE TUNNEL
63% of dealers expect themarket to turn around
by the end of 2009
55
WHEN THE GOING GETS TOUGHTHE TOUGH GET GOING
Source: Survey.com, September 2008
13%
17%
21%
50%
0% 10% 20% 30% 40% 50% 60%
Service and aftermarket sales
Used vehicle sales
Targeted, measurable Internet marketing
(leads, used, etc.)
Better follow-up processes and
processes to convert leads into sales
The #1 focus forThe #1 focus fora dealership is a dealership is
follow-up processesfollow-up processesand lead conversion and lead conversion
processesprocesses
What’s the MOST important thing helping you (or you think will helpyou) during the economic downturn?
66
WHERE ARE DEALERS TODAY IN THEIR FOLLOW-UP AND LEAD CONVERSION PROCESSES?
* Outsell Research 1/2007** 2007 Dealer eBusiness Performance Study-The New Buying Influences
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**
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All New Vehicle Leads
10%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All Leads Converted to Sales
Of leadsconvertedto a sale
Sold at “other”dealership
Sold at “intended”dealership
Too few leads converting...too many missed sales andlosing business to the dealership down the street…
77
FIRST: SPEED OF RESPONSE
10% 16% 49% 12%8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Required Speed of
Response From
Dealer/OEM to
Consumer Query
Immediately <1 hour 1-4 hours <24 hours
24-48 hours More than 48 hours Don't know
(% of consumers saying)
34%34% of car buyers expect aresponse in less than 4
hours – up from 31% in ‘07
Importance Only Increasing with Each Year – Car Shoppers Less Willing to Wait
Source: Cars Online Study 07/08, CapGemini
83%83% of car buyers expect aresponse in
less than 24 hours
88
Source: Survey.com, October 2007 and Autobytel Internal Survey, 6/07-10/07
• 78% of dealers surveyed say theirdealership followed up on leads witha personal response within an hour
Dealer PerceptionDealer Perception
• 21% of consumers indicated thatthey received a response from thedealership within an hour
Consumer PerceptionConsumer Perception
Response Within 60 MinutesResponse Within 60 Minutes
Consumers
21%
100%
50%
Dealers
78%
DISCONNECT BETWEEN DEALERS AND CONSUMERS
99
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences
• In-market customers arethe most impatient – 51%demand a responsewithin 4 hours or less
• 24% of leads close within1-10 days
FAST RESPONSE
25%
51%
0%
10%
20%
30%
40%
50%
60%
Look for another dealer Look for another
manufacturer and/or dealer
What Will Consumers Do IfYou Take Too Long?
Walkaway!!!
Response is Critical
1010
Sources: J.D. Power DSOBS press release, August 2008
• 53% of dealers now subscribe to a leadnotification program, whichinstantaneously alerts dealers to anincoming lead
• 83% of the top performing dealers haveprocesses in place to phone immediatelyafter receiving a lead
• Two-thirds of subscribing dealers“completely agree” that lead notificationprograms work well and believe that theyare worth participating in
WHAT KIND OF TECHNOLOGY ENABLES THAT LIGHTENING-LIKE RESPONSE?
Lead notification programs..
High levels of satisfaction ...
1111
Sources: Third-Party Study and Capgemini Study of European automaker -Cars Online 07/08
A quick response from a dealer is critical tohigh closing ratios
• Dealers responding to Internet customerswithin an hour have a 25% higherclosing ratio
• When a brand responds to a customerinquiry within 20 minutes, conversionrates are doubled
FASTER RESPONSE = HIGHER CLOSING RATIOS
1212
LEAD NOTIFICATION PROGRAM BEST PRACTICES
Source: J.D. Power DSOBS, 2007
• Designated cell phone number as #1 option to call
• Whisper feature to speak loud, clear and slow withcustomer information
• If using land line as optional number, develop process as tohow to handle calls
1313
Request Submitted The customer submits
a Purchase Request
“Tim Rogers. Pleasehold for message fromBill Smith. You have
received a newcar lead from
Autobytel.
Automated Operator
A request has come in!
Get the details from your
Your phone rings!
home, office ormobile phone!
Make the connection Press “1” to be connected to your customer
IMMEDIATE LEAD NOTIFICATION PROGRAM EXAMPLE OF HOW IT SHOULD WORK
1414
• 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
• 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
RAPID RESPONSE CASE STUDIES
1515
DID YOU KNOW…
On average, it takes 4.27 attemptsto reach a live person on the phone
Source: eLeads CRM
1616
SO MANY LEADS, SO LITTLE STAFF
Source: J.D. Power DSOBS, 2007
320
96
0
50
100
150
200
250
300
350
400
2001 2006
Average Monthly Dealer Web Inquiries/Leads
Increase ofIncrease of300%300%
1717
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 customersfrom start to finish
• Designated person at dealership towelcome / hand off customer to internetdepartment
• Colored fax paper to indicate a VIPappointment
1818
Dealer receivespurchase requestand attemptscustomer contact
• Sets in-dealershipVIP appointment
Automotive customer specialist talks tocustomer and..
• Scores Readiness to Buy
Dealer receivesnotification of customerin-dealership VIPappointment
In-dealership VIPAppointment
Customer Info
Dealer to implement established follow-up process
LIVE CALL VIP APPT SETTING PROGRAM EXAMPLE OF HOW IT SHOULD WORK
1919
DEALERS WHO DROP LEADS AFTER A COUPLE OF WEEKS ARE DROPPING SALES
11%8%
15%
10%
32%
24%
0%
5%
10%
15%
20%
25%
30%
1-10 11-20 21-30 31-60 61-90 90+
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences*Outsell Study 2007
43% close within 30 days 57% close after 30 days
Among leads that result in a sale…
More leads convert intosales after 90 days than do
in first ten days!
Average vehicle purchase sales cycle is 50 days *
2020
ACTIONS THAT CONVINCED CAR BUYERS TO VISIT DEALERSHIPS
53% 50%
29%22%
5%
59%
0%
10%
20%
30%
40%
50%
60%
Received email Answered
questions
Offered
competitive
price
Competitive
price for trade
in
Received direct
Did not
proactively
contact me
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences
Highest performing dealers studied use brand/productinfo templates to tell the brand and dealer story in emails.
2121
EMAIL MARKETING PROGRAM BEST PRACTICES
Source: J.D. Power DSOBS, 2007
• 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 manytimes a consumer has opened an email
• Options for consumers to get a "test drive"or more information about the vehicle theirlooking for
2222
AUTOMATED EMAIL MARKETING PROGRAM EXAMPLE OF HOW IT SHOULD WORK
Send Dealer Branded Emails at Timely Intervals
X
X
X
X
X
2323
• Prominent dealership branding
AUTOMATED EMAIL MARKETING PROGRAM EXAMPLE OF HOW IT SHOULD WORK
• Link to dealership website
• Engaging content/tips forthe customer
2424
SUMMARY
THANK YOU!
