OEM leads. One of the first things that come to mind is that they are not just expensive - some being as much as $25 per Lead - but they are often not the best lead source. Namely, they tend to have one of the lowest closing rates. One might think that because the customer is converting directly off of the OEM site that they have not just chosen their brand, but also their dealer. 

However, when was the last time we (us dealers) questioned how the OEM's lead process works? Asking the bold question: do they cause some of the rifts between dealers? Do they help create the "price-war" games as they send the same Lead to several dealers? More so, what can they do to not just help the dealership but offer the customer a better experience!?

Here are two things the OEM should consider when it comes to managing their lead processes.

How the Leads Are Distributed. Stop Pushing Leads to Out of PMA Dealers! 

We have all been there. That is getting a lead from the OEM that is not in your PMA, which in some cases means that the incentives are not the same. This is one issue I have never understood. Think about it, if the dealer is already hard-pressed to make a profit - losing money to sell the vehicle - why would they want to sell a unit to a customer that is not likely to come back for service? Service is the dealer's profit center. So while one or two deals at the end of the month might make or break your OEM kick-backs, selling out of PMA usually does not have any advantages for the dealer. 

One of the other situations that can arise out of this is OEM Incentives, depending on the month, the unit, and the trim level the incentives could vary slightly between PMA's especially if the Lead is in another state. Another issue dealers face when it comes to out PMA leads is the dealer processing fee situation. Each state has its own laws regarding what the dealer can charge their customers. With some states having as much as a 200 to 300 dollar difference. Whereas, if the leads went to the closest dealership based off of their zip-code, it could - in most cases - avoid most of these issues, and promote the idea of buying your vehicle from the local dealer. 

Are the OEM's Actually Hindering the Customer's Experience? Imagine Getting Emails from Seven Dealerships at Once - Especially if the Responses Do Not Answer the Customers Questions in the Lead! 

Offering the customer the best experience possible should not be an afterthought. The idea that many OEM's send a lead to all dealerships within a 50+ mile radius does not make sense. Sure, one could argue that they are trying to get the customer the best price possible. But chances are that for new inventory - with all of the current OEM pricing restrictions - prices are relatively the same. Why can't OEM's send the Lead to the closest dealership based on the customers' zip code? In doing so, it helps keep that Lead within its PMA, allowing the dealership a better chance of closing that customer. 

As for the customer's experience, getting multiple emails from various dealers - from the same OEM - at once can be frustrating for the customer. Think about it for a minute. Several dealers have auto-responders, send text messages, emails, calls, all overlapping each other. So wouldn't you be a bit frustrated that your inbox gets flooded? Especially considering that most of the immediate correspondence fails to actually answer the customer's questions in the inquiry - yet we wonder why our customers get frustrated? 

Lastly, as mentioned above, the customer is far more likely to service their vehicle with the dealership that is five miles away versus the dealer that is fifty-plus miles away. Sure, you will have the customer that wants to drive an hour further to save a few hundred bucks. But you will still have a better chance of selling that customer if you get the Lead first. Not to mention, we wonder why dealers struggle with retention rates in service, but we fail to adequately build the relationship with the customer - mostly because if they purchase outside of the PMA - with the same OEM - they did not get a chance to build a relationship. It is a lot easier to get the customer to come back for service if they know their sales consultant who is supposed to be introducing their customer to the service department at the time of delivery.  

Bottom Line: At the end of the day, the OEM's and dealers have to work together so we can offer the best experience possible. Part of offering a better experience to both the dealer and customer is having a solid approach to handling OEM leads. Ensuring that there is a fine balance in how communication is approached with the customer. All of which can have not just a positive impact on the customer's overall experience, but help the dealers keep their local customer's purchases local. 

When was the last time you engaged with your OEM on leads?