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Larry Bruce

Larry Bruce Founder / President / CEO

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Why you don’t need more traffic

You shouldn’t spend money on advertising to new people if your current visitors aren’t converting, period. Ask yourself this question: Would you spend $100,000.00 more on advertising knowing you only have one salesperson who’s closing ratio is less than 10%?


If your answer is what I think it is then why are you spending any money on “SEO” knowing that your name is what is driving 70% + of your traffic, any money on Page One Defense when the leak is so small or one more red cent on PPC to drive traffic to your Random Access website? (That’s the salesperson with a 2% to 7% closing ratio)
 

Let me repeat that: "You shouldn’t spend money on advertising to new people if your current visitors aren’t converting over 15%."


Let it sink in.
 

In a recent post Seth Godin wrote:
“The mistake we often make: thinking that the problem is that there’s not enough people starting the process, not enough people being exposed to your offer. In fact, it’s almost always a problem with how efficient the funnel is…”


If you want more business, more leads, more sales, then get more people to convert, that’s the key.
Fix your conversion funnel first. Then, you have an efficient machine and if you want to crank up the traffic you can do so.
 

This just makes sense none of us would load up our advertising if our sales force wasn’t closing at a efficient rate and we didn’t have a team in place to handle the traffic. Right now you don’t have a team to convert the traffic if it’s not doing so at least 15% and really should be more. So dealers please quit buying into these traffic building schemes that turn into nothing more that turn into nothing more that more low quality traffic few more leads if any and nowhere near the sales to justify the cost.


I will be giving 2 sessions at Digital Dealer 9 in Las Vegas where we will be discussing conversion in depth and real world suggestions you can go back to your dealership with to start converting higher right away.
 

Wednesday October 13th Extreme Webpage Makeover Room #219 the Jamaica Room
In this session I will take websites and landing pages from the audience and give suggestions to go back and implement to start converting higher and engaging customer more. This is always a fun session but don’t come and offer up your page if you are easily offended.


Thursday October 14th Conversion Marketing Room #305 the Trinidad Room
In this session will discuss 7 deadly sins of search, email and display marketing that are killing your conversion. Many of these have been promoted as fact and best practice in our industry, we will be debunking those myths with actual user footage from a large case study by MicrositesByU.com in conjunction with UserTesting.com.
 

I look forward to seeing many of your there, it will be fun and educational as always.
 

Dennis Galbraith
Larry, I certainly agree that fixing the leaks must be a priority. I think placing the proper analysis on the subject adds credibility to your argument. If a dealer can improve the visitor to store contact ratio from 7.5% to 15%, that is a 100% improvement. Assuming this number factors in all store contacts, including walk-in traffic, this conversion improvement would do as much good as a 100% improvement in site traffic. We want to tackle those areas with the lowest marginal cost per contact first. (Pick the low hanging fruit as they say.) Your argument is that until a dealer reaches a 15% conversion rate, improvements in conversion will always be more cost effective than improvements in traffic. You might be right, but there is no harm in doing the math on a case-by-case basis. I think it will back you up more times than not. Of course this is impossible for you to do in a post, so I understand the desire to reach for the 15% benchmark. However, individual dealers should look at how little it takes to move the conversion numbers compared to the traffic numbers. Where dealers need to be careful with vendors is when we look at lead-form submissions, or some other subset of store contacts. The percentage improvement still needs to include all store contacts in the denominator and the net change in the numerator to be comparable to the impact of a traffic increase. I used to get into it with a vendor to several OEMs over this subject. The vendor responsible for lead generation was maximizing their own numbers with no way to demonstrate net improvement in total store contacts. It is possible to decrease other forms of store contact by a greater amount than the increase in lead form submissions, which is going backwards. Some of the coupon gimmicks from the home page can do exactly that. This is why dealers need to listen to what you have to say. I've looked at enough of your work to know your focus is on meeting consumer needs and getting them in touch with the store, not playing games with funky numbers. One of my complaints about Digital Dealer is that the rooms are too small for the best speakers. I encourage dealers to get to your presentations early, while there is still room to sit or stand!
Larry Bruce
Thanks Dennis, in the end a lead is any form of contact to the dealership. In a straw poll I took in a Chrysler 20 group meeting this week I asked the following question: "Witch scenario would you rather have?" A. A visitor to your site and a lead in the form of a call, email, chat or form submission with good re-contact info. B. 5 visitors to your site and you cross your fingers that one will come into the store to buy. I think you know which one they choose unanimously. The fact is that there are vendors in this industry right now that are acting like bad car salesmen, "The would rather work the desk than the customer" in other words it's easier for them to convince the dealer that a lead isn't important than it is to figure out how to get more leads, so they sell traffic. It's a shame and I hate to see it but it is what it is, so I am on a bit of a Jihad against vendors selling traffic or tying to convince dealers that leads aren't the way to measure their effectiveness. To be clear:"IF YOUR BUYING THE TRAFFIC OR LISTING THEN A LEAD IS THE ONLY MEASUREMENT OF EFFECTIVNESS" Thanks for the kind words, look forward to catching up at DD9.
Mitch Gallant
Larry, I'm confused as all hell, I've read over the post and can't seem to decipher if the 15% your referring to as conversion is leads to sales or website sales. Either way I'm light on both and would be impressed if you're talking about website conversion as I'm peeling my jaw off the floor with a consistent 6% conversion, without including the phone traffic.
Mitch Gallant
** leads to sales or website conversion... my bad (told you Im confused)
Mitch Gallant
** leads to sales or website conversion... my bad (told you Im confused)

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