8 Things Dealers Can Do To Increase Their Show Rates

When handling Internet leads, the lack of response by customers, the appointments that don’t show and the unrealistic expectations often frustrate internet managers and dealers. Show and closing rates in the low to mid-teens is not uncommon, compared to the total number of leads received.

 

I thought I would share some best practices from my observations working both in and with dealerships, that can be used to increase the number of customers contacted that actually visit the dealership.

  1. Respond promptly – One of the most common setups in Internet departments is to have Internet sales managers (ISM) also serve in sales positions. A typical pay plan will see an ISM compensated by sales commissions, so that is where there focus will be. Therefore, when a customer comes in for an appointment Internet leads get ignored until the ISM is done with their customer. Which, in the event of a sale, could mean that the leads coming into the CRM are ignored for hours. A quick lead response exponentially increases the chance of contacting and further interesting the customer.

  2. Provide Information – ISMs typically use templates to contact customers once a lead is received, which usually contain information about the dealership and its value proposition, along with an invitation to visit. However, far too often the first e-mail fails to contain the one thing that the customer is expecting – vehicle pricing. It’s important to consider the source of the lead when responding. In most cases, the conversion occurred because the customer was prompted to fill out a form to get the price. If you fail to give the price, customers can perceive your dealership as unhelpful and move on to your competition.

  3. Be agreeable – We all know that some customers tend to have unrealistic expectations when requesting pricing or payment information. It’s not uncommon to find ISMs engaging the customers with reasons NOT to buy. For example, a lead comes in with a customer wanting an unrealistic payment or price. Rather than inviting the customer in to work numbers, the ISM will explain that the requested price or payment isn’t possible. Always remember that sales are a numbers game. With the proper deal structure, a payment can be as low as any customer wants it.

  4. Be consultative – Many times the vehicle that the customer requested pricing for isn’t the one they end up purchasing. Always remember that customers are looking for information and assistance. Failing to provide information puts the salesperson in an adversarial position to the customer. It’s much easier to build rapport and get the customer into the dealership if the customer feels that you are sincerely trying to assist them in finding the right vehicle.

  5. Sell the appointment – When dealing with Internet leads, ISMs will all too often try to sell the car via email or the phone. The key to increasing show rates is to remember that the goal is to get the appointment, NOT to sell the car. Using sales skills and techniques focused on selling the appointment rather than working a deal can help increase appointments set and your show rate.

  6. Go above and beyond – When a customer requests information, always give them more than they asked for. If you are offering vehicle pricing, try including an example payment. If the customer requested information about a new vehicle, include several trim levels in your response. If they are interested in a used vehicle, you may try including some alternate vehicles in your response as well. By providing more information than requested, the customer will understand that you are truly trying to assist them and therefore more likely to choose to do business with you.

  7. Make them feel special/personalize – There’s a reason why many dealers are adopting video in their email responses. If a customer wants information about the condition of a used vehicle, it’s very simple to record a personal walkaround for the customer while mentioning their name. Personalized video responses are valuable for building rapport and help put a face with a name. It’s also much easier than taking 10 pictures of a vehicle and trying to email them to the customer.

  8. Consistent follow up – It’s very easy to understand why ISMs get frustrated trying to contact customers who submitted leads, but are then unresponsive. After days or weeks of emails and phone calls, many salespeople tend to give up on the customer and move on. Keep in mind that chances are the customer is being contacted by other dealers as well. And, those dealers have ISMs who are getting just as frustrated. By not giving up on the customer and continuing to follow up, you could well be the only dealership left doing so. This exponentially increases the chance that the customer responds and ultimately ends up in your showroom.

 

Regardless of whether your Internet department consists of commission based ISMs, or if it has a full-blown BDC, the right processes, personalized responses and attention paid to detail, rather than simply shooting off boring sterile templates, will show your customers that you are there to help. Consider adopting these techniques into your Internet lead process. I hope that you are able to contact more customers, make more appointments and see more of them show, resulting in more sales.

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Comment by steven chessin on August 27, 2015 at 1:40pm

David - Great  article.

Something else I would add that I have always found to be effective - and yet -  whenever I attempt to explain it quickly to salesmen - reps -  or managers - it is is politely excused as irrelevant and unnecessary to improve their already flawless process. 

Back around 2000 - at the beginning of serious bdc training by Lexus / Cobalt - they stressed the importance of engaging the customer sufficiently to profile them and respond in the most effective manner specific to that individual customer. It was important  to know which customers responded positively to being warm and chatty and with which this tactic would backfire. 

When I directed bdc departments I always asked the rep "what is your lead's personality profile ?"

Fast forward this to today --- with bdc - ism - and sales all responding ----- without profiling and you see more than an internet lead response weakness  - but a larger total sales response problem.

Imagine being in a fight --- the defense of a punch is different than defending against a kick - or a choke. You cannot know which defense is needed until you engage the opponent to expose their attack tactic.  If you get a text that says, "Best price ?"  You need an effective counter such as "What is your zip code because the rebates vary by location". That gets a volley started and you have avoided their initial wild swing at you. There is a difference between clarification and avoidance - although ---- clarification is an avoidance technique. But most don't recognize it.  

From my perspective ---- I see bdc - internet sales- and sales responses to be simplistically crude or excessively informative - where a the most effective response - has to be simplistic at the  right time or informative at the right time - and knowing when each is correct is key. There's an old joke about the little boy who asks his father where he comes from and the response is a discourse on the "birds-and-bees".The father asks if his son understands and the boy says --- "I think so ... my friend Bobby comes from Cleveland."    

That is opposite of your Step 7. I believe in a 'Goldilocks' approach and keeping some persuasive power in reserve if needed. Keeping the easy ones easy is a more efficient use of limited HR resources.Which --- is why I favor "robot" assistance as a filter   ---  but that is another topic. It is important to use as little effort as possible to be able to handle as many as possible. A full-effort on each would be fine for 100 leads per month but not per week   -- unless hiring 4X as many reps is in the budget. And that gets into generating far more leads --- so it is better to "not go there" now.        

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