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Winning Starts With WHY: The Critical Role of the "Why Factor" in the Auto Industry
The why factor is what makes baseball America’s pastime and not just a sport. You don’t have to be a diehard fan to enjoy a baseball game. It’s the atmosphere - the sights, the sounds, the smells, the contests - the experience the ballpark offers that makes it an exciting event for the whole family.
I’ll admit, compared to other pro sports, baseball is relatively slow-paced. But regardless, people love going to baseball games. Why? Because there is something memorable that comes to life within the stadium. The ballpark experience has become a vibrant aspect of our culture.
Apple, like baseball, has also become a part of our culture due to their unique marketing plays. The question becomes, what does Apple have that competing brands lack? I’ll give you a hint. It starts with why and ends with factor. It’s the why factor alone that has made Apple more successful than Dell. Their business model takes the traditional, “outside-in” approach and reverses it from “What-How-Why” to “Why-How-What.”
Leadership guru, author and acclaimed TED Talks speaker, Simon Sinek has created his own diagram that demonstrates the why factor, which he refers to as “The Golden Circle” shown below. Sinek says, “The inspired leaders, the inspired organizations, regardless of their size, regardless of their industry, all think, act, and communicate from the inside out.”
Still with me? Let’s further break down how Apple has mastered the all-powerful “why factor.”
IF (and that’s a big if) Apple communicated like everyone else, they would say what they do, how they do it and why they’re better. Then they would expect the action or behavior of people wanting to purchase their products. This is the “outside in,” commonplace approach. This tactic fails to guarantee longevity or more importantly, loyal customers.
Sinek demonstrates how Apple’s marketing messaging would sound if they were just like everyone else (outside in)…
- What: “We make great computers.”
- How: “They’re beautifully designed, simple to use, and user-friendly.”
- “Want to buy one?”
Apple’s Actual Model (inside out):
- Why: “Everything we do we believe in challenging the status quo, we believe in thinking differently.”
- How: “The way we challenge the status quo is by making our products beautifully designed, simple to use, and user-friendly.”
- What: “We just happen to make great computers, want to buy one?”
The difference between these two angles of approach is in the values behind the company that define why they exist. Sinek emphasizes,“People don’t buy what you do, they buy why you do it.” Such a simple idea, but so incredibly powerful. If you don’t believe me, look at any great car salesperson vs. an average car salesperson and you will see what I mean.
In order to stand out, you can’t just say you’re different. You have to know exactly why you’re different. The why factor must be overflowing within your inherent system of beliefs. It should dictate why you get out of bed in the morning. It is this factor that conquers competitors and challenges the current way the game is played.
It’s not about if you win or lose. It’s about WHY you play the game. Same thing applies for dealers. Whether you sell the car or not, it’s essential you deliver a ball park-inspired, grand slam experience. People who have negative dealership interactions are more likely to tell their friends about them. Positive experiences equate to satisfied, loyal customers. The article, 9 Ways Your Business is Like Baseball also emphasizes the point, “The experience your customer has with your company can make or break their overall view of you and your products. Filling the seats isn’t enough. You want those seats filled by people who are happy they came.”
For your dealership’s message to resonate, you have to simply reverse the order of the information you deliver from “What-How-Why” to “Why-How-What” – always pushing forward from the inside out – never the other way around. Dealers can go about their day (and their marketing strategy) in one of two ways: they can sell cars, OR they can inspire people. Which will you choose moving forward?
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Four Simple Steps to Increase Website Conversion
Dealerships are constantly working to increase their website conversion – and for good reason. Organic conversions typically see the highest closing rates. However, I frequently encounter dealerships that wonder why they aren’t getting higher conversion rates, despite adding the latest gizmo or widget. Conversion rate optimization is tricky. Thankfully, there are some simple things that can be done to increase the chances your visitors convert.
1. Mobile – Today’s car buyers use their smartphones to gather information. The lack of a mobile-optimized website will unquestionably decrease your conversion rates. With the huge increase in Internet searches via mobile devices, if your site isn’t mobile enabled, it’s as if you are hiding your dealership from the majority of today’s online shoppers. I’m sure you would never fail to have good signage for your physical showroom. Well, the same can be said for your online presence. Make sure that you provide a great experience across all devices for your customers. That alone will help to increase conversions.
2. Simple Navigation – How many times have you visited a website, searched for information, and became frustrated because you couldn’t find it? What do you do when that happens? I bet you leave and look elsewhere. The harder it is for a customer to find the information they are looking for on your website, the more likely they will leave. Think of your home page as the beginning of a path. Most visitors came to your site with a destination in mind. Make it easy for them to find that information.
3. KISS – I’m sure that you’ve all heard the phrase, “Keep it simple, stupid.” This absolutely applies to conversion rate optimization. Far too many dealers overwhelm their website visitors with multiple conversion methods on every page of their site. Things like chat windows floating all over the screen, pop-ups appearing with each new page view, or forms all over the place. Examine each page of your website and put yourself in the customer’s shoes. Ask yourself this simple question: “If I was on THIS page of my website, WHY would I be here?” The better you can answer that question, the more you’ll understand the motivation of the customer, and provide a better conversion method that is attractive to the customer. Stop inundating customers with multiple conversion paths on every page of your website. Keep it simple and make sure the path you want the customer to take is very clear.
4. Contact Information – The single best conversion method for any dealership’s website is contact information. The majority of the visitors to your website are seeking this. Yet many times this information is the hardest to find. Make sure that your contact information, address and phone numbers, as well as your dealership’s hours of operation for both sales and service are prominently displayed at the top of your home page. Don’t make customers scroll to the bottom. Or, even worse, have to navigate their way to an “About Us” page to find this information.
Optimizing your website for conversion translates to simply providing a great customer experience. Reduce the noise and friction from your customers’ browsing experience and lead them down the path towards the information they seek. Once they arrive, give them a single, relevant and compelling reason to convert - and you’ll be surprised by how many do just that.
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Four Simple Steps to Increase Website Conversion
Dealerships are constantly working to increase their website conversion – and for good reason. Organic conversions typically see the highest closing rates. However, I frequently encounter dealerships that wonder why they aren’t getting higher conversion rates, despite adding the latest gizmo or widget. Conversion rate optimization is tricky. Thankfully, there are some simple things that can be done to increase the chances your visitors convert.
1. Mobile – Today’s car buyers use their smartphones to gather information. The lack of a mobile-optimized website will unquestionably decrease your conversion rates. With the huge increase in Internet searches via mobile devices, if your site isn’t mobile enabled, it’s as if you are hiding your dealership from the majority of today’s online shoppers. I’m sure you would never fail to have good signage for your physical showroom. Well, the same can be said for your online presence. Make sure that you provide a great experience across all devices for your customers. That alone will help to increase conversions.
2. Simple Navigation – How many times have you visited a website, searched for information, and became frustrated because you couldn’t find it? What do you do when that happens? I bet you leave and look elsewhere. The harder it is for a customer to find the information they are looking for on your website, the more likely they will leave. Think of your home page as the beginning of a path. Most visitors came to your site with a destination in mind. Make it easy for them to find that information.
3. KISS – I’m sure that you’ve all heard the phrase, “Keep it simple, stupid.” This absolutely applies to conversion rate optimization. Far too many dealers overwhelm their website visitors with multiple conversion methods on every page of their site. Things like chat windows floating all over the screen, pop-ups appearing with each new page view, or forms all over the place. Examine each page of your website and put yourself in the customer’s shoes. Ask yourself this simple question: “If I was on THIS page of my website, WHY would I be here?” The better you can answer that question, the more you’ll understand the motivation of the customer, and provide a better conversion method that is attractive to the customer. Stop inundating customers with multiple conversion paths on every page of your website. Keep it simple and make sure the path you want the customer to take is very clear.
4. Contact Information – The single best conversion method for any dealership’s website is contact information. The majority of the visitors to your website are seeking this. Yet many times this information is the hardest to find. Make sure that your contact information, address and phone numbers, as well as your dealership’s hours of operation for both sales and service are prominently displayed at the top of your home page. Don’t make customers scroll to the bottom. Or, even worse, have to navigate their way to an “About Us” page to find this information.
Optimizing your website for conversion translates to simply providing a great customer experience. Reduce the noise and friction from your customers’ browsing experience and lead them down the path towards the information they seek. Once they arrive, give them a single, relevant and compelling reason to convert - and you’ll be surprised by how many do just that.
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How to Convert More Website Visitors Into Leads
What's the best way to generate more leads from your website? Contrary to popular opinion, the answer isn't to "get more website traffic." Although a comprehensive digital marketing strategy is key to driving appropriate traffic levels to your website, unless those visitors convert into leads, that's money down the drain.
Before you spend more on search engine and digital advertising, focus on website conversion. Think about it: if you could double your website conversion rates, you could sell twice as many cars without spending another penny on advertising!
If you're thinking that website conversion is the sole responsibility of your website provider, think again! The dealership is actually responsibility for several key elements to conversion, including:
Content: People buy from businesses they like and trust. Content allows you to own your branding and showcase your strengths. Does your website content give customers a reason to like and trust you? Does it clearly state your value proposition (why buy from you?) Or does it read like many other cookie-cutter dealership websites?
Social Proof: This could be included under content, but it's so important it deserves its own category. Car shoppers want to know if you're trustworthy. The best way to do assure them you are is to litter your website with customer testimonials and plenty of quotes from (and links to) your online reviews.
Phone Ups: Believe it or not, your phone number is one of the biggest lead generation tools on your website. Make sure your website vendor includes your phone number in large font on every page. Make it stand out. Even more important, make sure your internal phone-answering process is flawless. You're paying for every phone call, so have every call answered quickly, by a human being, and don't leave callers on hold or transfer them to voice mail.
Chat. Does your chat window pop up the second a visitor lands on your website? Chat best practices include waiting a minute or two before approaching a visitor to see if they need help. Train your chat representatives to inform visitors about your latest offers, specials and incentives. They should also include URL links to other areas of your site to entice visitors to stay longer.
Lead Forms. Think of all the technology advancements that have been incorporated into dealership websites in the last ten years. Now think of your lead forms. They haven't changed much, which is why they don't perform well. Customers are conditioned to ignore them and most forms ask for too much information. To increase lead form conversion, reduce the number of field forms required to no more than three. Also be sure your lead forms answer the "What's In It For Me?" (WIIFM) question. Don't expect your website visitors to hand over their email address for free; what will you give them in return? Offering free content, a coupon or an incentive of some kind will help increase conversion rates.
Additionally, be sure your website vendor places all lead forms "above the fold" and incorporate borders, colors and other design elements to make them stand out.
Mobile Website: Last but not least, if you don't have a mobile, responsive website by now, make this your first priority! More than 50 percent of car shoppers are using their mobile devices to view dealer websites, including inventory pages. If you're not mobile, this is probably the easiest and fastest way to double your website traffic AND conversion rates.
1 Comment
AutoStride
Usability / User Experience (UX) is everything, not only to the user, but bots. Conversions are directly correlated to a highly usable interface. You can drive all the traffic you want, but if your landing pages and website suck, in terms of usability, you're doing it ALL WRONG. You should be doing A/B, Multivariate or Split Testing on your VDPs and SRPs: https://www.optimizely.com/ab-testing/ https://vwo.com/lp/ab-testing-tool/ (LOVE VWO) If you really have the money, hire a usability testing group, such as: http://www.userzoom.com/ (LOVE UZ) Web Remote Usability Testing UX Benchmarking & Measurement Competitive UX Benchmarking Information Architecture Prototype & Concept Testing Web Voice of the Customer Mobile Remote Usability Testing Mobile App Voice of the Customer http://teced.com/services/user-interface-design/ https://www.usertesting.com/ http://www.centralis.com/landing/usability https://usability.pro/landing/usability-testing etc. Subjective opinions are a bunch of BS, test your interfaces over and over and over again, until you get it right. I laugh at the number of large groups making this mistake.
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How to Convert More Website Visitors Into Leads
What's the best way to generate more leads from your website? Contrary to popular opinion, the answer isn't to "get more website traffic." Although a comprehensive digital marketing strategy is key to driving appropriate traffic levels to your website, unless those visitors convert into leads, that's money down the drain.
Before you spend more on search engine and digital advertising, focus on website conversion. Think about it: if you could double your website conversion rates, you could sell twice as many cars without spending another penny on advertising!
If you're thinking that website conversion is the sole responsibility of your website provider, think again! The dealership is actually responsibility for several key elements to conversion, including:
Content: People buy from businesses they like and trust. Content allows you to own your branding and showcase your strengths. Does your website content give customers a reason to like and trust you? Does it clearly state your value proposition (why buy from you?) Or does it read like many other cookie-cutter dealership websites?
Social Proof: This could be included under content, but it's so important it deserves its own category. Car shoppers want to know if you're trustworthy. The best way to do assure them you are is to litter your website with customer testimonials and plenty of quotes from (and links to) your online reviews.
Phone Ups: Believe it or not, your phone number is one of the biggest lead generation tools on your website. Make sure your website vendor includes your phone number in large font on every page. Make it stand out. Even more important, make sure your internal phone-answering process is flawless. You're paying for every phone call, so have every call answered quickly, by a human being, and don't leave callers on hold or transfer them to voice mail.
Chat. Does your chat window pop up the second a visitor lands on your website? Chat best practices include waiting a minute or two before approaching a visitor to see if they need help. Train your chat representatives to inform visitors about your latest offers, specials and incentives. They should also include URL links to other areas of your site to entice visitors to stay longer.
Lead Forms. Think of all the technology advancements that have been incorporated into dealership websites in the last ten years. Now think of your lead forms. They haven't changed much, which is why they don't perform well. Customers are conditioned to ignore them and most forms ask for too much information. To increase lead form conversion, reduce the number of field forms required to no more than three. Also be sure your lead forms answer the "What's In It For Me?" (WIIFM) question. Don't expect your website visitors to hand over their email address for free; what will you give them in return? Offering free content, a coupon or an incentive of some kind will help increase conversion rates.
Additionally, be sure your website vendor places all lead forms "above the fold" and incorporate borders, colors and other design elements to make them stand out.
Mobile Website: Last but not least, if you don't have a mobile, responsive website by now, make this your first priority! More than 50 percent of car shoppers are using their mobile devices to view dealer websites, including inventory pages. If you're not mobile, this is probably the easiest and fastest way to double your website traffic AND conversion rates.
1 Comment
AutoStride
Usability / User Experience (UX) is everything, not only to the user, but bots. Conversions are directly correlated to a highly usable interface. You can drive all the traffic you want, but if your landing pages and website suck, in terms of usability, you're doing it ALL WRONG. You should be doing A/B, Multivariate or Split Testing on your VDPs and SRPs: https://www.optimizely.com/ab-testing/ https://vwo.com/lp/ab-testing-tool/ (LOVE VWO) If you really have the money, hire a usability testing group, such as: http://www.userzoom.com/ (LOVE UZ) Web Remote Usability Testing UX Benchmarking & Measurement Competitive UX Benchmarking Information Architecture Prototype & Concept Testing Web Voice of the Customer Mobile Remote Usability Testing Mobile App Voice of the Customer http://teced.com/services/user-interface-design/ https://www.usertesting.com/ http://www.centralis.com/landing/usability https://usability.pro/landing/usability-testing etc. Subjective opinions are a bunch of BS, test your interfaces over and over and over again, until you get it right. I laugh at the number of large groups making this mistake.
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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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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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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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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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Identifying Customer Intent through Conversion & Incentives
Dealer websites today are filled with conversion widgets. In most cases, customers will choose only one form or call-to-action (CTA) to convert on. If the CTA that they chose was “value my trade,” then you can be pretty sure that the value of their trade-in is their hot button. Or perhaps they filled out a credit application. Those may be pretty low-funnel customers who, in most cases, will have some credit challenges that they may need help with. Most conversions, however, are from price-based CTAs. Whether the conversion happened because there was no price and they clicked “Get price.” Or, whether a price was present and they wanted more information, the majority of the leads any dealer gets will begin in this manner. That being said, we also know that many dealers have pop up specials or incentives they offer their website visitors. It could be a “$100 off coupon” towards a vehicle. Or it could be “Get a $25 gift card with test drive.” What does it tell you, however, when the same customer converts on both forms, one right after the other?
The customer’s intent when converting on your website is to move further down the funnel towards a new vehicle. Some may be simply pricing out vehicles and doing research. While others may be planning to go buy a car tomorrow… or even today. If your dealership has a special offer pop up on the website and you get a lead from a VDP, then immediately after get a conversion on the pop up, the sirens should go off. These customers want information and have taken the next mental step towards buying a car from you. Not only are they prepared to take you up on that $100 off or gift card offer, but they have, at the very least, narrowed your dealership down to one they plan to visit.
Most dealerships have canned templates for online inquiries - some better than others. I would suggest, however, that if you see conversion activity as described above, you should have a completely different process in place for handling these leads. Just think about what this consumer’s actions tell you about their intent. They came to your website, browsed your inventory, landed on a vehicle that interested them enough to give away the one thing that they control -- their information. Consumers don’t give this up easily. They understand that the moment they input their information and hit the submit button, someone at your dealership will be e-mailing and calling them. So, they decide to leave your website and are presented with an incentive. They’ve already filled out a form indicating interest. If they then stop and fill out a second form in order to claim an offer, they’ve just told you that they’re interested in the vehicle and doing business with your dealership AND, very likely, that they’re considering doing it SOON.
It is important to have concrete processes in place and consistent follow up with all of your internet leads - and I certainly don’t recommend cherry picking and ignoring any leads. However, the lead that comes in with a message that says “I want to buy a car from you tomorrow” will definitely perk up some ears and initiate some serious action by a dealership’s ISMs or managers. If you show offers and incentives to your customers and experience 2 conversions in a short period of time, one being your special offer, treat that lead exactly as if the customer had told you they were buying a car from you soon… because that’s exactly what their behavior told you, regardless of whether they typed it into the lead form.
1 Comment
northtownautomotive
Interesting insight do you have so data to the buying cycle is compressed when this happens.
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Identifying Customer Intent through Conversion & Incentives
Dealer websites today are filled with conversion widgets. In most cases, customers will choose only one form or call-to-action (CTA) to convert on. If the CTA that they chose was “value my trade,” then you can be pretty sure that the value of their trade-in is their hot button. Or perhaps they filled out a credit application. Those may be pretty low-funnel customers who, in most cases, will have some credit challenges that they may need help with. Most conversions, however, are from price-based CTAs. Whether the conversion happened because there was no price and they clicked “Get price.” Or, whether a price was present and they wanted more information, the majority of the leads any dealer gets will begin in this manner. That being said, we also know that many dealers have pop up specials or incentives they offer their website visitors. It could be a “$100 off coupon” towards a vehicle. Or it could be “Get a $25 gift card with test drive.” What does it tell you, however, when the same customer converts on both forms, one right after the other?
The customer’s intent when converting on your website is to move further down the funnel towards a new vehicle. Some may be simply pricing out vehicles and doing research. While others may be planning to go buy a car tomorrow… or even today. If your dealership has a special offer pop up on the website and you get a lead from a VDP, then immediately after get a conversion on the pop up, the sirens should go off. These customers want information and have taken the next mental step towards buying a car from you. Not only are they prepared to take you up on that $100 off or gift card offer, but they have, at the very least, narrowed your dealership down to one they plan to visit.
Most dealerships have canned templates for online inquiries - some better than others. I would suggest, however, that if you see conversion activity as described above, you should have a completely different process in place for handling these leads. Just think about what this consumer’s actions tell you about their intent. They came to your website, browsed your inventory, landed on a vehicle that interested them enough to give away the one thing that they control -- their information. Consumers don’t give this up easily. They understand that the moment they input their information and hit the submit button, someone at your dealership will be e-mailing and calling them. So, they decide to leave your website and are presented with an incentive. They’ve already filled out a form indicating interest. If they then stop and fill out a second form in order to claim an offer, they’ve just told you that they’re interested in the vehicle and doing business with your dealership AND, very likely, that they’re considering doing it SOON.
It is important to have concrete processes in place and consistent follow up with all of your internet leads - and I certainly don’t recommend cherry picking and ignoring any leads. However, the lead that comes in with a message that says “I want to buy a car from you tomorrow” will definitely perk up some ears and initiate some serious action by a dealership’s ISMs or managers. If you show offers and incentives to your customers and experience 2 conversions in a short period of time, one being your special offer, treat that lead exactly as if the customer had told you they were buying a car from you soon… because that’s exactly what their behavior told you, regardless of whether they typed it into the lead form.
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northtownautomotive
Interesting insight do you have so data to the buying cycle is compressed when this happens.
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Putting Showrooming In Perspective
As a husband and father to 5 daughters, the cartoon above is, at times, a pretty accurate description of my life. I’m sure all men in similar situations have found that couch or chair they inevitably get placed in while the females in their lives try on shoes, clothes or whatever they may need. In reality, I shop more than my wife and kids… they just don't go with me.
But the real reason it caught my attention is that it is such a great illustration of a somewhat new “challenge” that has hit the retail world, and one that I work to help many dealers with – showrooming. I talk about showrooming and how it is affecting dealerships a lot – but sometimes the concept itself doesn’t sink in. Perhaps it’s because customers aren’t as direct as the lady in the cartoon. Maybe some dealers just don’t see customers using their smartphones to compare prices while still sitting right in the showroom, or out on the lot. But I guarantee you it is happening all the time. In fact, over 60 percent of customers visiting an auto dealer's lot will use their smartphones to simultaneously shop the competition. And two thirds of those will leave that dealership and visit another store within a day. This is showrooming
This cartoon perfectly illustrates the concept. No doubt you’ve comparison priced items at one point – whether that was a television, refrigerator, or even just a book. All of us want a good deal. Amazon makes it very easy with their app. All you have to do is scan a bar code and you’ll have the online price. There are other apps that will even show you the prices at multiple stores.
I have no doubt that some entrepreneur will someday create an app that will allow car shoppers to accomplish a similar result simply by using their phone to scan a VIN. Heck, we have already built our solution to incentivize a customer and allow them to text our dealer while sitting in a competitive dealership.
This is what’s happening in retail on a daily basis – and has been for a while now. Consumers are realizing that they can price shop a car dealership just as easily as can shop for anything else. And that’s why it’s important to find ways to keep that customer in your dealership. And, if you feel even more enterprising, find an effective way to lure the customer shopping your inventory while at your competitor, into YOUR showroom, and away from theirs.
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