As salespeople, it's imperative to be abreast with shopping trends.  The survival of your dealership may depend on it.  A rapid growing trend is the growth of smartphone and tablet use, especially to access local content.  These are shoppers nearby, ready to purchase from a local dealership. 

There are a bunch of studies and mobile stats indicating that mobile internet usage is predicted to surpass desktop internet usage in 2014.  This phenomenon can only have an impact on shopping behavior.  A new study by xAd and Telemetrics reveals that smartphone and tablet owners are very reliant on these devices when researching local products and services. 

The following are more stats, in addition to the graphs, on smartphone and tablet usage:

• Smartphone users were more than 5 times more likely than non-smartphone users to access local content (77% vs. 14%)
• 46% use smartphones and tablets exclusively to aid their local purchase decisions
• Half of the 46% use smartphones and tablets at the beginning of the research process
• One-third of the 46% use their device throughout the purchase process
• 60% of smartphone researchers have completed purchases
• 53% of tablet researchers have completed purchases
• 53% of respondents overall said they eventually made their purchase offline or in-store (also called "webrooming")
• Shoppers aged 18-35 are far more likely to "webroom"
• Smartphone users prefer accessing local content via applications than through browsers

There are a lot of stats here but they speak volumes to the popularity of local content on mobile devices and the need to be ready for the mobile world.  For those in the retail business, what are some changes (if you haven't already made them) could you do?  I would first start by:

• Optimizing your website for mobile
• Ensure that your website looks good and works well on mobile devices, especially to attract return visitors
• Optimize your email or other correspondence for mobile devices to avoid email deletion
• Make it easy for the mobile visitor to obtain pertinent information, including how to contact your dealership
• And add a simple call to action that can turn the customer into a lead so you know when they're coming to you, ready to buy

Sources:

http://www.marketingcharts.com/wp/interactive/77-of-smartphone-users-accessed-local-content-in-december-2012-29312/
http://www.marketingcharts.com/wp/interactive/almost-half-of-mobile-owners-rely-only-on-their-devices-for-local-purchase-decisions-29117/
http://www.marketingcharts.com/wp/interactive/webrooming-more-prevalent-than-showrooming-among-millennials-29712/?utm_campaign=newsletter&utm_source=mc&utm_medium=textlink

Unless you live under a rock, we are aware that the telephone conversation is a dying activity, being replaced largely by texting.   According to a Pew Institute survey, the number of text messages sent monthly in the US boomed from 14 billion in 2000 to 188 billion in 2010, and continues to grow.  In a TIME mobility poll, 32% of all respondents said they'd prefer to communicate by text than phone, even if a person they know very well.  This is also valid in the workplace where communication is between colleagues and customers who are often not friends at all.  Texting customers in the automotive, motorcycle and similar industries has become commonplace for maintaining contact with customers and used frequently by service departments; however, a recent study has found a greater benefit:  it can greatly increase conversion rates.

A new study conducted by Leads360 examined the impact of text messaging in the sales process. The study analyzed almost 3.5 million lead records from more than 400 consumers across multiple industries and discovered that text messaging is linked to above-average conversion rates, however, only after a relationship between the customer and sales has been developed.  The conversion rate of those texted only after a relationship has been developed was 112.6% above the average conversion rate of contacted leads, compared to a conversion rate of 4.8% below average for consumers contacted before a developed relationship.

Additionally, consumers contacted by text both before and after phone contact had a 19.6% higher conversion rate than the average for contacted leads; however, there's a better outcome when a text is sent after initial phone contact has been made. In fact, sending a text prior to contacting the prospect on the phone decreased the likelihood of contacting the lead by 39%.  Another important finding was that prospects who are accepting of multiple texts and sent more than 3 texts post-contact with reason were converted at a 328% higher rate than the average.

It's no surprise, text messaging in sales organizations can be a wonderful growth opportunity.  To get the best out of using text messaging, the salesperson should:  1)  Text a customer after a relationship has been established, and 2) Send at least 3 texts if the situation calls for it.  This is just another shot to capture leads and convert customers.

Additional source:  http://www.marketingcharts.com/wp/topics/research/texting-done-right-linked-to-significantly-higher-lead-conversion-rates-26478/

There has been a manner of thinking in internet sales to focus only on first party leads.  Many dealers are conflicted about whether to decrease or even discontinue the use of third party lead providers altogether.  Other dealers have made third party leads a valid and beneficial part of their marketing mix; however, they often lose sight of the importance of first party leads.  Both have value and positively affect sales and profit opportunities, but it's worth the time it takes to explore the differences.

Third party lead generators usually collect their data by bidding on keywords in your market, they create SEM (search engine marketing) campaigns, then they sell you the leads.  But that's the same method used by dealers who are generating leads from their own website.  Third-party lead generators don’t do anything different than you could be doing on your own website.  They are often intercepting traffic from your own backyard, leads that should be yours to begin with.  And dealers are paying more to purchase the same results that they could be generating themselves.  Another factor to look at is that your provider may be sharing the leads you paid for with other dealerships who are competing for the same customer.

The positive news about third party leads is the industry has seen refined efforts by lead providers to improve the quality of their leads; and, there is still a need for third-party lead sites because they give shoppers a passage to numerous brands and the information they need to make more knowledgeable buying decisions.  But even though third-party leads continue to be useful, they are taking a backseat to OEM (original equipment manufacturer) and dealership websites which are becoming more independent, able to stand on their own and attract their own leads.

Wikipedia defines 1st Party Leads as sales leads that contain the contact information delivered from prospective customers directly to the potential seller. These prospective customers' original connection with the potential seller is the result of a direct action by the merchant, advertiser or marketer.  In other words, you generate the lead yourself, and far more cost effectively. 

First party leads are in the market consumers, ready to purchase a product and are actively engaged with your website.  These are leads you generate yourself using your own website traffic and conversion tools associated with your site, such as pay-per-click, SEO, email, video, etc.  And these self generated leads have plenty of advantages.  Their quality is much higher because the visitors are ready-to-buy, reaching out to YOUR dealership to fill their needs.  Also, while first party leads beat all other lead generators at conversions, they do so at a fraction of the cost.   There's no commission or mark-up for services you could easily be performing on your own.  Self generated leads cost about three to six dollars each, as opposed to upwards of $20 for an independent internet lead.  And because first-party leads come directly from your specific marketing, potential customers naturally feel a connection to your dealership from the beginning. This is why they tend to close at rates about 3 times higher than all other types of leads combined. 

Today's market lead conversion success depends more on access to better leads and better lead handling.  Studies have shown that a mix of both first party leads and third party leads, both with their own intrinsic value, when in the right balance, is the most profitable formula.  However, it's paramount that dealerships make the best use of their website to pull in first party leads, implementing a "call to action" mechanism on their site to convert a consumer into a lead.  Once you have captured these leads, it is imperative that they are properly handled and are contacted quickly and often. 

Sources:

• 2011 Automotive Internet Study and the Role of Independent Internet Leads, A Kain Automotive.com Study, April 17, 2011
• http://dealer-communications.com/lead-management-and-crm/digital-marketing-independence-%E2%80%93-growing-first-party-leads/
• http://www.dealermarketing.com/internet-marketing/online-marketing/1136-third-party-lead-providers-are-still-key-but-lead-handling-skills-still-need-improvement

I have often engaged in telephone conversations with sales managers and internet sales managers who have stated they don't have enough employees to handle the leads they receive.     I understand it is not so easy and a delicate balance with lead providers, but, my initial reaction (to myself) was, "Then why don't you hire more salespeople?".

A  survey I found from Aquent and the American Marketing Association (AMA) indicated that  less than half (46%) of marketers say their teams are well equipped to handle new trends and technologies.  The study also found that slightly less than half of the respondents feel that they have the people needed on their team to meet the organization’s marketing objectives, despite that fact that their marketing strategy will positively impact their organization financially this year.  This could be possibly due to the fact that 44% of marketers are expecting an increase to their budgets this year.

Even though organizations are expected to improve financially this year, wouldn't you want to further your dealerships prosperity by functioning at top level?  Here are some questions you might want to ask yourself:

• Are your employees equipped to handle marketing objectives?  
• Do you have enough salespeople to handle the leads you receive?  
• Are you receiving so many leads that you are unable to followup on all of them?  
• Is it possible that you need to hire more salespeople, or,
• Could it be as simple as lowering the quantity of dead-end leads?

If you haven't done so already, maybe it's time to look at all your lead sources and determine which gives you the highest conversion ratio.    We believe that a large concentration should be towards leads you are already driving to your own website, customers who are reaching out to connect with your dealership, also known as first party leads.  Or finding additional avenues to capture more visitors from your website... a call to action.  

According to industry experts, most dealers close about 7% of their leads, however, close their first party leads at more than 20%.

Organic website leads are your most serious buyers because they found your website on their own, were converted, are in the market consumers ready to buy now and have come to you to make that possible.  The only thing you have to do to close the sale is not lose them.  Capturing these consumers is imperative and makes the use of fewer, higher quality conversion tools worth while.

Sixty-seven percent of all internet users are using social media as a form of connecting with family and friends.  Businesses are also finding it beneficial in making these same connections as a way of advertising their products and services, and with valid reasons.  

The old form of advertising is not effective any longer.  Companies tried to capture our attention through advertising, but the more ads that clutter our consciousness, the fewer adds we are able to focus on and comprehend.  We begin to tune them out, causing advertising to get louder in an attempt to recapture our attention.  Eventually we tune that out too. This causes a challenge for businesses.

The old advertising model includes attraction and conversion…attract attention and then convert that attention into a call to action by pushing advertising onto the customer whether they want it or not.  Even though attraction and conversion still matter, the new advertising model consists of referral and conversation.  This model creates a message worth passing along from person to person.  The message isn’t broadcast from one to many, but referred from many to many.  People do this when they pass links to each other on Facebook or Twitter or Pinterest on something they found useful or comical.

So what should you do when you’ve received a referral or lead?  You still need strategies like strong headlines and hooks to hold prospects’ attention while you start to create a relationship.  And you still need conversion, but that conversion shouldn’t happen with dishonesty and deviation.  In the new model, conversion takes place within a conversation and connection.  You build trust and acceptance with sincerity and honesty, a connection, while establishing yourself as a friend and authority of that product.  You show the customer how your product helps them.

Today’s new social networking forms like blogs, customer forums and email newsletters allow you to take conversations and multiply them for hundreds to potentially millions of customers.  You tell your story over time and your product becomes a trustworthy expectation, not just a thing.  By using these forums, you create meaningful conversations with customers using your best persuasive techniques to capture their interest, instigating them to send your content to their friend, driving them to your location and website, improving conversion rations and eventually buying your products and services.  

We would like to help capture referrals to your website so you can include them in your conversations.  If you’re interested, contact Holly from  LeadCrafters at 954-861-0206

The year 2012 was a favorable year for vehicle sales.  We know trending tells us that a greater percentage of sales can be attributed to leads that were acquired from the internet.  This is great news for car dealers because it also means they experienced an increased volume of quality internet leads.  Hopefully this trend continues throughout 2013; however, it is important that these leads do not fall through the cracks.

Many dealerships already complain of insufficient number of sales staff to follow-up on their leads.  And they're also competing for these leads with multiple dealerships because approximately one-third of customers submit leads to multiple dealerships.  Josh Vajda of AutoUSA Internet Sales Solutions suggests 3 best practices for high internet lead volume:

1.  Make sure your dealership is appropriately staffed and responds to leads as quickly as possible.  Salespeople cannot wait an hour to respond to leads, response must be right away.  Studies have shown the quicker a lead is responded to, the more likely they'll become a sale.

2.  Since multiple businesses are competing for your leads, it is important to meet the customer's needs as early as you can.  Ask questions, maybe put out an offer, but make sure your customer is accommodated as best as possible.

3.  Especially if it is difficult for your dealership to manage leads, technology is needed to supplement the efforts of the internet staff.  Such as AVA (Automated Virtual Assistance), an artificial intelligence that engages the customer and carries on a two-way conversation with them over email, sending messages, receiving responses, interpreting the responses, then taking some action based on the customer's reply.  This is a great way to manage leads in volume.

There is also something to say about leads that come through the dealership website.  These are some of your most serious customers because they specifically searched for your website and were converted.   These are in the market consumers, ready to buy now and coming to you to make that possible.  Capturing these consumers is imperative and makes the use of many conversion tools worth while.  However, too many dead end leads (tire kickers) do nothing but add busy work to the desks of your team.

So what does this all mean?  It seems to mean that a focus on quality is far more important than a focus on quantity.  It's easy to get sucked into a deal with a company that claims to provide you with many, many leads.  The question to ask yourself is how much busy-work is justified?  Followup on all leads is important; however, the best approach seems to be implementing the 3 best practices coupled with a concentration on first party leads.

We are one source for first party leads.  www.leadcrafters.com