Improving Closing Ratios
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The document discusses improving car sales closing ratios through faster response times and long-term follow up. It finds that 67.5% of new vehicle buyers use the internet for research, and response time within 3 days has increased from 80% in 2003 to 86% in 2007. However, 80% of car shoppers never get a response. The document recommends solutions like instant messaging, wireless paging, rapid response, broadcast emails, newsletters, CRM automation and email managers to boost closing ratios through better communication and long-term follow up. A dealer testimonial finds rapid response led to immediate 300% improvement in closing ratios and sales.
Improving Closing Ratios
- 1. The Fast and the Furious Improving Closing Ratios Through Faster Response Time and Long Term Follow-Up Tim Rogers, Vice President, Sales Operations
- 2. Closing Ratios • Response Time • Communication • Long Term Follow-Up 2
- 3. Today’s Consumer The profile of the average adult American Internet user is very similar to the profile of the average American. The demographic shift -- from early adopters of new technology who are young, relatively wealthy and predominantly male, to average Americans -- is important because it validates the Internet as a mainstream marketing, advertising and research platform. Online Population 1996 2001 2006 Average American in 2006 Male 62% 49% 48% 49% Female 38% 51% 52% 51% Income $63k $50k $53k $46k Adults 18 - 49 88% 76% 59% 68% Adults 50+ 12% 24% 37% 30% Sources: Insight Express data 2001, US Census data 1996-2006, Harris Interactive 2006, iNetShops.com 3
- 4. Today’s Consumer • 67.5% of new vehicle buyers use the Internet to research vehicles • The Internet now leads more than twice as many late-model, used-vehicle buyers to the vehicles they purchase than traditional newspaper and magazine classified ads • 77% of automotive Internet users visit an independent automotive website (3rd party) in their shopping process • Internet-generated new car sales are expected to grow from 4.1 million in 2005 to 6.6 million in 2010 —up from 25% of total sales in 2005—to 35% of total sales in 2010 • The Internet wielded considerable influence on car purchases for 16 million Americans in 2005, up from 13 million in 2002. • On average 44% of car buyers rely much more on independent car buying websites than on dealership websites. • 39% of automotive Internet users report the Internet had some/big impact on their dealer selection • 35% of new vehicle buyers submit leads at more than 1 website Sources: Major third-party studies including J.D. Power NewAutoshopper.com and UsedAutoshopper.com, Pew Internet and American Life Project, DoubleClick Touchpoints IV, Jupiter Research 4
- 5. Consumer Adoption of the Internet Percentage of New Vehicle Buyers Turning to the Internet for Research/Shopping 80% 70% 60% 50% 40% 30% 20% 10% 0% 1998 2006 Source: J.D. Power NewAutoshopper.com Studies, 1998-2006 5
- 6. Response Time Percent of Consumers Who Heard from a Dealer within 3 Days 90% 85% 80% 75% 70% 65% 60% 55% 50% 2003 2004 2005 2006 2007* Reps ons e Rate 80% 84% 85% 85% 86% Sourc e: A BT 3 Day Surv ey *Through February 2007 6
- 7. Response Time Percent of Consumers Who Heard from a Dealer within 1 Hour 25% 20% 15% 10% 5% 0% 2003 2004 2005 2006 2007* Reps ons e Rate 16% 17% 19% 21% 20% Sourc e: A BT 3 Day Surv ey *Through February 2007 7
- 8. Bottom Line: Sales are Being Left on the Table! 8
- 9. Solutions • Instant Messaging 9
- 10. Instant Messaging AOL Messenger MSN Yahoo Messenger Messenger 10
- 11. Solutions • Instant Messaging • Wireless Paging Technologies • Rapid Response 11
- 12. Rapid Response 12
- 13. Long Term Follow-Up Purchase Cycle Online Purchase Cycle 80% of Car Shoppers Never Get a Response! % 1 43% 26% 11% 20% 0 - 30 Days 31 - 60 Days 61- 90 90+Days Days 0 % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 7 – 10 Days 13
- 14. Solutions • Broadcast Emails 14
- 15. Broadcast Email 15
- 16. Solutions • Broadcast Emails • Newsletter 16
- 17. Dealer Newsletter 17
- 18. Solutions • Broadcast Emails – Stay top of mind with your customers easily and consistently • Newsletter – Stay in touch with your customer base while promoting specials • CRM Automation – Use automated follow-ups to boost closing ratios • Email Manager – Keep in touch with your long term buyers with strategic email follow-up campaigns 18
- 19. Email Manager 19
- 20. Dealer Testimonial “Rapid Response led to immediate results. Within the first month of using the program, closing ratios and sales on Autobytel leads improved 300%. And in the ensuing four months, George Chevrolet has doubled its sales through Autobytel, which has rapidly moved from the middle of the pack of the dealership’s online buying services to become George Chevrolet’s #1 sales and ROI generator.” Tom Black, General Manager George Chevrolet 20
- 21. Q&A 21