courtesy chevy internet sales lead management process
TRANSCRIPT
ATTRACT
INTERACT
RESPOND
SELL
SERVICE
RETAIN Courtesy Chevrolet Internet Courtesy Chevrolet Internet Sales Team Strategy Meeting Sales Team Strategy Meeting and Training Sessionand Training Session
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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While the overall average lead buying cycle is 13 days, While the overall average lead buying cycle is 13 days, there are variations depending on the time of year. One there are variations depending on the time of year. One thing in my research that I found surprising is that the thing in my research that I found surprising is that the typical months considered to be the height of the buying typical months considered to be the height of the buying season - June, July, and August - did not have shorter season - June, July, and August - did not have shorter average buying cycles than I originally hypothesized. average buying cycles than I originally hypothesized. Looking at lead buying cycles from dealer websites, which Looking at lead buying cycles from dealer websites, which historically have higher closing ratios, the average time it historically have higher closing ratios, the average time it took for a customer to buy after submitting a lead was 10.9 took for a customer to buy after submitting a lead was 10.9 days. December leads had the longest closing period of days. December leads had the longest closing period of 22 days; and October had the shortest with 7.7 days. 22 days; and October had the shortest with 7.7 days. Further analysis could determine why there is such a huge Further analysis could determine why there is such a huge disparity from month to month. disparity from month to month. October had the shortest October had the shortest buying cycle at 7.7 days - so this is your month!buying cycle at 7.7 days - so this is your month! ³
Buying Cycles Vary by the Month
³ Gilbert A. Chavez is an Internet sales and CRM consultant. He can be reached by email at [email protected] or by phone at (505) 622-1952.
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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How long from new lead till they buy?
Here is the break down for buying Here is the break down for buying cycle times in days, for each month³:cycle times in days, for each month³:
July July 8.58.5August August 14.314.3September September 11.711.7October October 7.77.7November November 13.813.8December December 2222
January January 11.2 11.2 February February 11.111.1March March 14.514.5April April 10.910.9May May 13.413.4June June 10.210.2
³Over 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.
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Number of leads received and vehicles sold each month¹
¹Source: Nielsen, Wards’s Dealer Business, Automotive News and Forrester Research
9.2%9.2%Avg. Close RatioAvg. Close Ratio
3.5%3.5%UV/Lead RatioUV/Lead Ratio
57%57%Response RateResponse Rate
Response Time & ContentResponse 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 A: Increasing Closing Ratios is not “Just About”“Just About” Response Times… Response Times…
Q: Why the variations?Q: Why the variations?
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Top 4 Ways to Close More
Sales to Leads
Received
Dealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry (Lead)
Purchase Purchase RespondeRespondents* who nts* who DID NOTDID NOT
experience experience the the
attributeattribute
% of % of Purchase* Purchase* among the among the Leads who Leads who
DID DID ExperienceExperience the attributethe attribute
Statistical Statistical Correlation Correlation Factor of Factor of Response Response attribute attribute
with with Vehicle Vehicle
PurchasePurchase
#1#1 Make Direct Phone Contact with Customer Make Direct Phone Contact with Customer (after sending Email w/availability & prices)(after sending Email w/availability & prices) 17%17% 27%27% 1111
#2#2 Send Price Quotes by Email to CustomerSend Price Quotes by Email to Customer 20%20% 27%27% 99#3#3 Contact Customer more than once by Contact Customer more than once by
Email Email andand Telephone Telephone (within First 24 Hours)(within First 24 Hours) 21%21% 25%25% 55#4#4 Make sure Customers are either Make sure Customers are either CompletelyCompletely or or
Very SatisfiedVery Satisfied with the Lead Response with the Lead Response 21%21% 24%24% 33
*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
Recent Marketing research (Q1, 2005) confirms the Lead Management Recent Marketing research (Q1, 2005) confirms the Lead Management Practices collected during “Best In Class” Dealer Benchmark studies.Practices collected during “Best In Class” Dealer Benchmark studies.How to sell more vehicles to customers that submit Internet leads… How to sell more vehicles to customers that submit Internet leads…
Without relying on opinions or seat of the pants management!Without relying on opinions or seat of the pants management!
What’s the competition doing?What’s the competition doing?
What’s the competition doing?What’s the competition doing?
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
What’s the competition doing?What’s the competition doing?
What’s the competition doing?What’s the competition doing?
From: Nick Kinsey [mailto:[email protected]] Sent: Saturday, October 08, 2005 5:02 PMTo: [email protected]: 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 DirectorBill Heard Chevrolet - Scottsdale480-947-3535
What’s the competition doing?What’s the competition doing?
... 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 must work 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.com where you can view our new and resale inventory.
J. LatallInternet Sales Director Van Chevrolet - Scottsdale, AZ
What’s the competition doing?What’s the competition doing?
What’s the competition doing?What’s the competition doing?
““Ralph Paglia-Ralph Paglia- I've included an equipment list and price quote on I've included an equipment list and price quote on the 2006 Chevrolet Tahoe you're intrested in. the 2006 Chevrolet Tahoe you're intrested in. Your Your fleet/internet price is $37,424.27 including all fleet/internet price is $37,424.27 including all applicable rebates + taxes, license, doc fee.”applicable rebates + taxes, license, doc fee.”
• VIN# 1GNEC13T06R115718VIN# 1GNEC13T06R115718• MSRP $44,950MSRP $44,950
What’s the competition doing?What’s the competition doing?
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Merge Fields built into templates Merge Fields built into templates should be checked and edited should be checked and edited before sending to customer…before sending to customer…
Merge Fields built into templates Merge Fields built into templates should be checked and edited should be checked and edited before sending to customerbefore sending to customer
Merge Fields built into templates Merge Fields built into templates should be checked and edited should be checked and edited before sending to customer…before sending to customer…
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Will we generate this survey Will we generate this survey response? Or,…………response? Or,…………
After 10 hours, a lead is After 10 hours, a lead is worth next to nothing!worth next to nothing!
Not sending price quotes to Not sending price quotes to “Request Quote” leads drops sales “Request Quote” leads drops sales closing ratio by over 8 points!closing ratio by over 8 points!
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Will we generate this? Will we generate this? And, get the sale.…… And, get the sale.……
Leads responded to with a price quote Leads responded to with a price quote within 1 hour close at DOUBLE the rate of within 1 hour close at DOUBLE the rate of those responded to in 5 hours!those responded to in 5 hours!
Sending price quotes by email has more positive Sending price quotes by email has more positive impact on raising sales closing rates than anything impact on raising sales closing rates than anything else an ISS can do using email! The follow-up else an ISS can do using email! The follow-up phone call is key to making price quotes work…phone call is key to making price quotes work…
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What happens when we What happens when we fail to meet a customer’s fail to meet a customer’s expectations?expectations?
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When we promise a customer that they will receive When we promise a customer that they will receive pricing information in exchange for their personal and pricing information in exchange for their personal and confidential information… And, we then fail to deliver confidential information… And, we then fail to deliver promptly and courteously after receiving that info… promptly and courteously after receiving that info… What should we expect to sell?What should we expect to sell?
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How important is timing?How important is timing?
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How important are Price Quotes?How important are Price Quotes?
A T T R A C T • I N T E R A C T • R E S P O N D • S E L L • S E R V I C E • R E T A I N © 2005. Courtesy Chevrolet
How important is customer satisfaction How important is customer satisfaction with lead response and price in relation with lead response and price in relation to getting them into the dealership?to getting them into the dealership?
The average number of leads submitted by The average number of leads submitted by new vehicle new vehicle buyersbuyers in 2002 was 1.43 in 2002 was 1.43
The average number of leads submitted by The average number of leads submitted by new vehicle new vehicle buyersbuyers in 2003 was 1.36 in 2003 was 1.36
The average number of leads submitted by The average number of leads submitted by new vehicle new vehicle buyersbuyers in 2004 was 1.33 in 2004 was 1.33
The average number of leads submitted by The average number of leads submitted by new vehicle new vehicle buyersbuyers in 2005 is 1.32 YTD in 2005 is 1.32 YTD
•*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, YTD 2005
Let’s take a closer look at the factsLet’s take a closer look at the facts
RE: The myth of the Internet Shopper submitting leads to dozens of dealers
““No Response Syndrome”No Response Syndrome” When customers receive initial email responses from When customers receive initial email responses from
dealers that dealers that do not deliver perceived valuedo not deliver perceived value, they follow , they follow their own “Email Management Process”:their own “Email Management Process”:
1.1. Delete the email messageDelete the email message2.2. Do not respond by emailDo not respond by email3.3. Do not answer phone calls from dealership or return Do not answer phone calls from dealership or return
messages left via answering machinemessages left via answering machine4.4. Future emails from same dealer are deleted without Future emails from same dealer are deleted without
being opened or responded to, and sender is marked being opened or responded to, and sender is marked as spam source for filteringas spam source for filtering
Offer alternativesProvide value-added content
Be conversational – (“smile”)Be clear and to the point
Create desireCreate sense of urgency
Give reasons to choose dealership
Ask for appointment - logicallySetup choice close
Ensure professional content
Confirm availabilityQuote prices
Setup follow-up call
Manage customer expectations
The Science of using Email Templates for improved direct contact ratios and sales results
Offer Product Presentation
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
5 Lead Management Activities that Drive Lead-to-Sales conversion at 400%400% higher rate*
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 5. Customer contacted more than once within first
24 hours*Source: Morpace 24 hour survey and RDR sales Data
(new 2005 study reconfirms close ratio impact factors)
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
Lead-to-Sales Closing RateLead-to-Sales Closing RateImprovement Action ItemsImprovement Action Items
Courtesy 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
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Sold Leads – First Response Examples
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Sold Leads – First Response Examples
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Actual Leads – First Response Examples
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Sold Leads – First Response Examples
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Actual Leads – First Response Examples
Tuesday, May 2, 2023 © 2005. Courtesy Chevrolet
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Actual Leads – First Response Examples
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Actual Leads – First Response ExamplesPay attention to details in outbound emails before
hitting the “Send” button!!!
Pay attention to details in outbound emails before
hitting the “Send” button!!!
New Autoresponse validates customer
contact info and seeks corrections
New Autoresponse invites customer to visit
CourtesyChev.com by providing direct links to
specific sections of value
3 Phone Numbers! 3 Phone Numbers! (Work/Home/Cell) (Work/Home/Cell)
How important are Phone #’s???How important are Phone #’s???
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
1.1. Automated Email Reply acknowledging Automated Email Reply acknowledging receipt – Verify Customer Contact Info & ask receipt – Verify Customer Contact Info & ask for more for more
2.2. Personalized Email Personalized Email within 20 minuteswithin 20 minutes of of business day that provides price quotes on 4 business day that provides price quotes on 4 vehicles and sets stage for a follow-up vehicles and sets stage for a follow-up telephone call within 15 minutestelephone call within 15 minutes
3.3. First Phone Call to customer: verify receipt of First Phone Call to customer: verify receipt of email and schedule a demo/test drive email and schedule a demo/test drive appointmentappointment
4.4. Appointment Confirmation by Email Appointment Confirmation by Email andand TelephoneTelephone
5.5. Instruct customer to check in at reception Instruct customer to check in at reception desk, ASM reviews agenda upon customer desk, ASM reviews agenda upon customer arrival, introduces ISS who sells & delivers arrival, introduces ISS who sells & delivers the vehicle the vehicle
6.6. Follow-up Email that sets the stage for Follow-up Email that sets the stage for referrals and additional business, to be referrals and additional business, to be routed to ISS who sold carrouted to ISS who sold car
Lead Management PROCESS 101Lead Management PROCESS 101
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
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 Courtesy Chevrolet Internet Price-Quote Follow-up word track
3. Set the stage for your Customer’s expectations… Create a buying “Plan” during the conversation
4. Schedule appointment for a vehicle presentation and test drive at dealership or customer’s location
5. Follow-up with email confirmation of appointment6. Prepare for appointment by locating vehicle(s)
and ensuring their availability for demo drive
First Call First Call AfterAfter Sending Personalized Email Sending Personalized EmailPurpose:
New Lead Phone Follow-upNew Lead Phone Follow-up
Telephone ProcessTelephone Process
• 85% of Web visitors who contact the dealership before coming into the showroom, use the phone• Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios
Phone Follow-Up Sales Strategy (FUSS):• Focus on having a set of objectives in front of us, each time we make an email follow-up call• Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
… The Bottom Line1. Customer has spent up to 6 hours in researching
a vehicle online before sending us a lead 2. Selected Courtesy Chevrolet as their dealer3. Requested a price quote on a vehicle
They are much likely to buy from Courtesy if you…1. Respond quickly – without “fluff and puff”2. Confirm vehicle availability – with alternatives 3. Provide a fair price quote – multiple vehicles4. Contact them by phone – verify receipt of email
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
Vehicle Shopper Behavioral ProfilesVehicle Shopper Behavioral Profiles¹¹
1Profile Index of 100 equates to the industry average
Internet Users(IU)
Non-InternetShoppers (NIS)
Non-InternetUsers (NIU)
Time Investors 137 37 50
Product Experts 113 76 85
Price Sensitive 112 73 91
Dealerphobes 112 89 74
EmpoweredNegotiators
100 96 103
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
Managing Your Assigned Leads; New Leads / Not Yet Responded
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
Managing Your Assigned Leads; Emails Received / Not Yet Responded
May 2, 2023 Copyright © 2005 Ralph Paglia – All Rights Reserved
Managing Your Assigned Leads; Scheduled Telephone Appointments / Completed
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ProactiveProactive Sales Lead Sales Lead Management ResponsibilityManagement Responsibility
DormantLeads
Courtesy ChevroletCourtesy ChevroletLead Management Process (LMP):
Automated Reply w/Info Validation RequestFirst Email w/Price Quotes on 4 VehiclesPhone follow-up to verify receipt of email…
and to get a demo/test drive appointment!Email Confirmation when Voicemail is leftGet second email address during phone callOutbound Follow-up Calls made by BDCInbound eSales Calls handled by BDCAppointment Reception sets stage for the Sale