improving closing ratios

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The Fast and the Furious Improving Closing Ratios Through Faster Response Time and Long Term Follow-Up Tim Rogers, Vice President, Sales Operations

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Improving Closing Ratios

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Page 1: Improving Closing Ratios

The Fast and the FuriousImproving Closing Ratios Through

Faster Response Time and Long Term Follow-Up

Tim Rogers, Vice President, Sales Operations

Page 2: Improving Closing Ratios

Closing Ratios

• Response Time

• Communication

• Long Term Follow-Up

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Page 3: Improving Closing Ratios

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

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Page 4: Improving Closing Ratios

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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Page 5: Improving Closing Ratios

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

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Page 6: Improving Closing Ratios

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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Page 7: Improving Closing Ratios

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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Page 8: Improving Closing Ratios

Bottom Line:

Sales are Being Left on the Table!

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Page 9: Improving Closing Ratios

Solutions

• Instant Messaging

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Page 10: Improving Closing Ratios

MSNMessenger

AOLMessenger

YahooMessenger

Instant Messaging

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Page 11: Improving Closing Ratios

Solutions

• Instant Messaging

• Wireless Paging Technologies

• Rapid Response

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Page 12: Improving Closing Ratios

Rapid Response

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Page 13: Improving Closing Ratios

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

Page 14: Improving Closing Ratios

Solutions

• Broadcast Emails

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Page 15: Improving Closing Ratios

Broadcast Email

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Page 16: Improving Closing Ratios

Solutions

• Broadcast Emails

• Newsletter

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Page 17: Improving Closing Ratios

Dealer Newsletter

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Page 18: Improving Closing Ratios

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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Page 19: Improving Closing Ratios

Email Manager

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Page 20: Improving Closing Ratios

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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Page 21: Improving Closing Ratios

Q&A

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