ralph paglia "crm: what is your crm process?"
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CRM: What is Your CRM Process?TRANSCRIPT
CRM: What is you CRM Process?Ralph PagliaPresidentAutomotive Media Partners, LLC
Pg. 39
ATTRACT
INTERACT
RESPON
D
SELL
SERVICE
RETAIN
Average Monthly Lead Volume (24): 5,214Average Monthly Internet Sales (24): 348Annual Total Store Retail Sales (2): 9,200 & 11,000+
Do Car Buying Cycle Times Vary?
While the overall average lead buying cycle (Lead Received to Sale Date) is 13 days, there are variations depending on the time of year. One factor kept appearing in my research is that the typical months considered to be the height of the buying season - June, July, and August - did not have shorter average buying cycles. Looking at lead buying cycles from dealer websites, which historically have higher closing ratios, the average time it took for a customer to buy after submitting a lead was 10.9 days. December leads had the longest closing period of 22 days; and October had the shortest with 7.7 days. Further analysis could determine why there is such a huge disparity from month to month.
•October sales have the shortest buying cycle at 7.7 days•December sales have the longest buying cycle at 22 days
ATTRACT – INTERACT – RESPOND – SELL – SERVICE - RETAIN
How long from new lead till they buy?
ATTRACT – INTERACT – RESPOND – SELL – SERVICE - RETAIN
Here is the break down for buying cycle times in days, for each month³: July 8.5
August 14.3September 11.7October 7.7November 13.8December 22
January 11.2 February 11.1March 14.5April 10.9May 13.4June 10.2
³Over a 15-month period, Gilbert A. Chavez conducted an exhaustive analysis of leads - from the top third party lead generators, from a multi-franchised dealer website, and from four OEM/factory sites. Statistics from my research show that the average person who buys a car after submitting a purchase request does so within 13 days of the submission. Gilbert A. Chavez is an Internet sales and CRM consultant.
Number of leads received and vehicles sold each month¹
9.2%Avg. Close Ratio
3.5%UV/Lead Ratio
57%Response Rate
¹Source: Nielsen, Wards’s Dealer Business, Automotive News and Forrester Research
How do we measure the actual impact of “What” Internet Salespeople do when they receive a lead?
How much are results effected by “When” they do it? How do we measure the impact of timing on the
results we get from our Lead Management Process?Two critical control factors measured:1. Timing correlation with Sales2. Dealer Response Attributes
Response Time & Content
A: Increasing Closing Ratios is not “Just About” Response Times…
Q: Why the variations?
Top 4 Ways to
Close More Sales
to Leads Received
Dealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry (Lead)
Purchase Respondents* who DID
NOT experience
the attribute
% of Purchase* among the Leads who
DID Experience
the attribute
Statistical Correlation
Factor of Response attribute
with Vehicle Purchase
#1 Make Direct Phone Contact with Customer (after sending Email w/availability & prices) 17% 27% 11
#2 Send Price Quotes by Email to Customer 20% 27% 9#3 Contact Customer more than once by Email and
Telephone (within First 24 Hours) 21% 25% 5#4 Make sure Customers are either Completely or Very
Satisfied with the Lead Response 21% 24% 3Sales and Lead Data Marketing research confirms the Lead Management
Practices collected during “Best In Class” Dealer Benchmark studies.How to sell more vehicles to customers that submit Internet leads…
Without relying on opinions or seat of the pants management!*Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
What’s the competition doing?
What’s the competition doing?
2006 Chevrolet CK15706 - Tahoe: 4WD "Must Have" Options "Don't Want" Options -------------------------------------------------------------------------- VIN / Order #: 1GNEK13Z66R128254 Event Code: 5000 Vehicle delivered to dealer MSRP: $45,560
What’s the competition doing?
What’s the competition doing?
Ralph:
We have received your email inquiry about a Chevrolet Tahoe 4wd 4-dr. This automatic response will be followed by a detailed email offering you availability & pricing information.Thanks for your interest.Nick Kinsey Assistant Internet DirectorBill Heard Chevrolet - Scottsdale480-947-3535
From: Nick Kinsey [mailto:[email protected]] Sent: Saturday, October 08, 2005 5:02 PMTo: [email protected]: Bill Heard Chevrolet - Scottsdale - Welcome
What’s the competition doing?
... this note just verifies that your purchase request through Autobytel has been received and thank you for choosing Van Chevrolet located at 8585 E. Frank Lloyd Wright Blvd. at Hayden Road in North Scottsdale, AZ (just west of the Loop 101 North).
Our Internet/Fleet department is committed to providing you, the Internet consumer, a simple, efficient and enjoyable vehicle buying experience. We strive to exceed your expectations. Our Internet/Fleet managers have been specially trained to stream-line the purchase process to save you both time and money.
•They will confirm the specifics of your vehicle request. Our invoice based pricing takes availability and demand for any given vehicle into account.
•They will get you top dollar for your present vehicle. Our 60+ store network enables us to pay hundreds or even thousands more than other dealerships.
You must work with our Internet/Fleet managers only for this special pricing and we look forward to earning your business!
Our phone numbers for your convenience are 888-647-3066 or direct at 480-991-5192. Please direct e-mail to [email protected] or visit us at http://www.vanchevrolet.com where you can view our new and resale inventory.
J. LatallInternet Sales Director Van Chevrolet - Scottsdale, AZ
What’s the competition doing?
“Ralph Paglia- I've included an equipment list and price quote on the 2006 Chevrolet Tahoe you're intrested in. Your fleet/internet price is $37,424.27 including all applicable rebates + taxes, license, doc fee.”
• VIN# 1GNEC13T06R115718• MSRP $44,950
What’s the competition doing?
Merge Fields built into templates should be checked and edited before sending to customer
Merge Fields built into templates should be checked and edited before sending to customer…
Merge Fields built into templates should be checked and edited before sending to customer…
Will we generate this survey response? Or,…………
After 10 hours, a lead is worth next to nothing!
Not sending price quotes to “Request Quote” leads drops sales closing ratio by over 8 points!
Will we generate this? And, get the sale.……
Leads responded to with a price quote within 1 hour close at DOUBLE the rate of those responded to in 5 hours!
Sending price quotes by email has more positive impact on raising sales closing rates than anything else an ISS can do using email! The follow-up phone call is key to making price quotes work…
What happens when we fail to meet a customer’s expectations?
When we promise a customer that they will receive pricing information in exchange for their personal and confidential information… And, we then fail to deliver promptly and courteously after receiving that info… What should we expect to sell?
How important is timing?
How important are Price Quotes?
How important is customer satisfaction with lead response and price in relation to getting them into the
dealership?
The average number of leads submitted by new vehicle buyers in 2009 was 1.63
The average number of leads submitted by new vehicle buyers in 2010 was 1.56
The average number of leads submitted by new vehicle buyers in 2011 was 1.53
The average number of leads submitted by new vehicle buyers in 2012 was 1.52
Let’s take a closer look at the factsRE: The myth of the Internet Shopper submitting leads to
dozens of dealers
•*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, YTD 2012
When customers receive initial email responses from dealers that do not deliver perceived value, they follow their own “Email Management Process”:
1. Delete the email message2. Do not respond by email3. Do not answer phone calls from dealership or return
messages left via answering machine4. Future emails from same dealer are deleted without
being opened or responded to, and sender is marked as spam source for filtering
“No Response Syndrome”
Offer alternatives
Provide value-added contentBe conversational – (“smile”)
Be clear and to the point
Create desire
Create sense of urgencyGive reasons to choose dealership
Ask for appointment - logicallySetup choice close
Ensure professional contentConfirm availability
Quote prices
Setup follow-up call
Manage customer expectations
The Science of using Email Templates for improved direct contact ratios and sales results
Offer Product Presentation
5 Lead Management Action Items that Drive
Sales Close Rates 400% Higher*1. Consumer received price quote(s)
by email within first 24 hours2. Direct customer phone contact made
by Salesperson within first 24 hours3. Salesperson confirmed availability of
multiple vehicles within first 24 hours4. Salesperson showed genuine interest
in earning the customer’s business 5. Customer contacted more than once
within first 24 hours
*Source: Morpace 24 hour survey and RDR sales Data2011 CarShopper study reconfirms close ratio impact factors
Lead-to-Sales Close RateImprovement Action Items
Dealership LMP Review
Survey customers who didn’t purchase
Review Lead Management Tool for a sampling of previous responses
Score first personalized responses using the eBusiness Evaluation System
Sold Leads – First Response Examples
Sold Leads – First Response Examples
Actual Leads – First Response Examples
Sold Leads – First Response Examples
Actual Leads – First Response Examples
Actual Leads – First Response Examples
Pay attention to details in outbound emails before hitting
the “Send” button!!!
Pay attention to details in outbound emails before hitting
the “Send” button!!!
New Autoresponse validates customer
contact info and seeks corrections
New Autoresponse invites customer to visit
CourtesyChev.com by providing direct links to
specific sections of value
3 Phone Numbers! (Work/Home/Cell)
How important are Phone #’s???
1. Automated Email Reply acknowledging receipt – Verify Customer Contact Info & ask for more
2. Personalized Email within 20 minutes of business day that provides price quotes on 4 vehicles and sets stage for a follow-up telephone call within 15 minutes
3. First Phone Call to customer: verify receipt of email and schedule a demo/test drive appointment
4. Appointment Confirmation by Email and Telephone5. Instruct customer to check in at reception desk, ASM
reviews agenda upon customer arrival, introduces ISS who sells & delivers the vehicle
6. Follow-up Email that sets the stage for referrals and additional business, to be routed to ISS who sold car
Lead Management PROCESS 101
First Call After Sending Personalized Email
1. Verify customer has received the email with price quotes on 4 vehicles. If relevant, obtain customer’s “REAL” email address and schedule a follow-up call after re-sending quotes to new email address (work)
2. Establish what is most important to your customer by following the Internet Price-Quote Follow-up word track
3. Set the stage for your Customer’s expectations… Create a buying “Plan” during the conversation
4. Schedule appointment for a vehicle presentation and test drive at dealership or customer’s location
5. Follow-up with email confirmation of appointment6. Prepare for appointment by locating vehicle(s)
and ensuring their availability for demo drive
Purpose:
New Lead Phone Follow-up
• 85% of Web visitors who contact the dealership before coming into the showroom, use the phone• Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios
Phone Follow-Up Sales Strategy (FUSS):• Focus on having a set of objectives in front of us, each time we make an email follow-up call• Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response
Telephone Process
…The Bottom Line
1. Customer has spent up to 6 hours in researching a vehicle online before sending us a lead
2. Selected Courtesy Chevrolet as their dealer3. Requested a price quote on a vehicle
They are much likely to buy from if you…4. Respond quickly – without “fluff and puff”5. Confirm vehicle availability – with alternatives 6. Provide a fair price quote – multiple vehicles7. Contact them by phone – verify receipt of email
J.D. Power Vehicle Shopper Behavioral Profiles¹
1Profile Index of 100 equates to the industry average
Internet Users(IU)
Non-InternetShoppers (NIS)
Non-InternetUsers (NIU)
Time Investors 137 37 50
Product Experts 113 76 85
Price Sensitive 112 73 91
Dealerphobes 112 89 74
Negotiators100 96 103Empowered
“ROUND ROBIN” IS THE WORST LEAD ASSIGNMENT SYSTEM EVER CREATED!
Use Intelligent Lead Routing and Manage Your Sales Opportunity Assignments…
• Multiple Lead Routing Addresses to Route by Source and Type• MANAGE Lead Assignments for Optimum Sales Rates (be fair to the dealer)• High Value Leads should be reviewed for Salesperson Reassignment • Create Teams to Handle Affinity Group Referrals (Costco, TrueCar, etc.• Reassign New Leads when they are not Responded to Promptly• Limit Number of Leads Assigned to each Salesperson• Over 40% of Vehicles Sold to New Car Leads are… Used Cars!
Proactive Sales Management LMP Supervision Responsibility
DormantLeads
Proven Effective LMP
Lead Management Process (LMP):Automated Reply w/Info Validation RequestFirst Email w/Price Quotes on 4 VehiclesPhone follow-up to verify receipt of email…
and to get a demo/test drive appointment!Email Confirmation when Voicemail is leftGet second email address during phone callOutbound Follow-up Calls made by BDCInbound eSales Calls handled by BDCAppointment Reception sets stage for the Sale