The research is in and the facts cannot be ignored, car dealers who have not developed a comprehensive online marketing strategy that includes technology and processes that address the fundamental needs of the online customer are losing sales.

Best Practices of Market Leaders.

In his article, published March of 2006, Cliff Banks refers to a study commissioned by an online marketing and website provider for the auto industry and performed by R.L. Polk. The study of 1,329 dealerships over a 15 month period processed data on over 1 million leads that resulted in actual sales.

The same study reported that of the 92% who bought from a different dealership 76% bought another brand or a used vehicle and only 24% purchased the brand they first searched.

The top 5% of dealerships in this study had fewer lost opportunities and as the study discovered shared a common approach that was fundamental to their success. The "best practices" shared by these dealerships saw far fewer lost opportunities and resulted in increased sales.

A survey of top performing dealerships revealed that a "rapid response" and the "quality" of the response were essential to achieving a higher closing rate.

Rapid Response

Rapid Response "the ability to establish a relationship with the lead" early in the sales cycle is critical to a successful online sales strategy. Top performing dealerships depend on technology and a disciplined process to achieve their goal of responding within one hour of receiving a lead. While one hour may be the stated goal for response time the average response time for top performing dealerships in the study was four hours. Almost all top performing dealerships in the study employed a CRM (Customer Relationship Management System) providing technology that interfaced with their website or websites and accepted leads from third party providers. Top performing dealerships found it essential for rapid deployment of leads to designate staff to initiate first contact.

Quality of Response

The study also references a survey by Friedman-Swift Associates that found that 92% of all e-mail leads asked two questions _"Do you have this vehicle?" and "What price can you sell it to me for?" The study further reported that only 26% of the responses answered the consumer’s questions. Industry pundits attribute the dealer’s reluctance to give a price to a fear that they will lose any negotiating leverage. In fact experts advocate giving a price or you will lose the customer. The same survey discovered that 39% of purchases that occurred at the original dealership contacted were because the price was competitive. The same experts who advised giving the price also stated that the price need not be cheaper only that it be competitive.

Another interesting fact revealed by the study diverges on many dealer’s belief that a purchase request (lead) generated by the internet or a third party provider has already made their mind up about a vehicle. The study found that 76% of the customers bought a vehicle different than the one they intended. Conclusion, offer the customer a choice and provide more information about the vehicles. The study also found that the longer a customer takes to close, the more likely they are to purchase a used vehicle.

The study found that 32% of leads became sales in the first 30 days and that 68% turn into sales within 90 day. Dealers who employed aggressive follow-up strategies that included both e-mails and phone calls were able to exploit the extended sales cycle.

With DMTS Internet Lead Management

Respond almost immediately to customer inquiries

Access vehicle or loan approval information and provide quality response

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