improving closing ratios
Post on 13-Sep-2014
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Improving Closing RatiosTRANSCRIPT
The Fast and the FuriousImproving Closing Ratios Through
Faster Response Time and Long Term Follow-Up
Tim Rogers, Vice President, Sales Operations
Closing Ratios
• Response Time
• Communication
• Long Term Follow-Up
2
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.
30%37%24%12%Adults 50+
68%59%76%88%Adults 18 - 49
$46k$53k$50k$63kIncome
51%52%51%38%Female
49%48%49%62%Male
Average American
in 2006
200620011996Online Population
Sources: Insight Express data 2001, US Census data 1996-2006, Harris Interactive 2006, iNetShops.com
3
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 thevehicles they purchase than traditional newspaper and magazine classified ads
• 77% of automotive Internet users visit an independent automotive website (3rd party) intheir shopping process
• Internet-generated new car sales are expected to grow from 4.1 million in 2005 to 6.6million 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 in2005, up from 13 million in 2002.
• On average 44% of car buyers rely much more on independent car buying websites thanon dealership websites.
• 39% of automotive Internet users report the Internet had some/big impact on their dealerselection
• 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
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Consumer Adoption of the Internet
0%
10%
20%
30%
40%
50%
60%
70%
80%
1998 2006
Source: J.D. Power NewAutoshopper.com Studies, 1998-2006
Percentage of New Vehicle Buyers Turning to the Internet for Research/Shopping
5
Response Time
Percent of Consumers Who Heard from a Dealer within 3 Days
50%
55%
60%
65%
70%
75%
80%
85%
90%
Repsonse Rate 80% 84% 85% 85% 86%
2003 2004 2005 2006 2007*
Source: ABT 3 Day Survey
*Through February 2007
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Response Time
Percent of Consumers Who Heard from a Dealer within 1 Hour
0%
5%
10%
15%
20%
25%
Repsonse Rate 16% 17% 19% 21% 20%
2003 2004 2005 2006 2007*
Source: ABT 3 Day Survey
*Through February 2007
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Bottom Line:
Sales are Being Left on the Table!
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Solutions
• Instant Messaging
9
MSNMessenger
AOLMessenger
YahooMessenger
Instant Messaging
10
Solutions
• Instant Messaging
• Wireless Paging Technologies
• Rapid Response
11
Rapid Response
12
Long Term Follow-Up
Purchase Cycle
43% 26% 11% 20%
0 % 1 0 % 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % 7 0 % 8 0 % 9 0 % 1 0 0 %
1%
0 - 30 Days 31 - 60 Days 61- 90
Days
90+Days
7 – 10 Days
80% of Car Shoppers Never Get a Response!
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Online Purchase Cycle
Solutions
• Broadcast Emails
14
Broadcast Email
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Solutions
• Broadcast Emails
• Newsletter
16
Dealer Newsletter
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Solutions
• Broadcast Emails – Stay top of mind with your customerseasily and consistently
• Newsletter – Stay in touch with your customer base whilepromoting specials
• CRM Automation – Use automated follow-ups to boostclosing ratios
• Email Manager – Keep in touch with your long termbuyers with strategic email follow-up campaigns
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Email Manager
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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
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Q&A
21