Courtesy of: 9 Clouds: Inbound Internet Marketing for Automotive Dealers

When dealerships/marketers were asked what the highest priority was for their marketing efforts the overwhelming winner at 55% was: Improving conversion. Increasing volume was just over 30% at #2.

When asked what part of the “sales” challenge was the hardest the number one answer was (40%): Prospecting Lead. #2 response was qualifying at 20%.

When asked how much information does your company have about a lead before a salesperson reaches out the overwhelming answer at almost 100% was: Basic Contact Information. #2 response was Interested vehicle information at 45%.

So let’s dig in a bit here, shall we?

Worth mentioning is that just last year this same survey showed that increasing lead volume was the highest priority for dealerships and marketers over improving conversion. So what’s to blame for the shift? Have dealerships only recently reached the pinnacle of leads that they can actually sort through or have the tactics used to gather this information simply improved overnight overwhelming the dealers? Maybe the industry is just reacting to decreased margins from vehicle sales and this is an effort to reduce costs. I’m sure the answer is different for every dealership or lead provider and I welcome those stories and opinions below.

Our feeling here is that technology isn’t only creating demand in the consumer to know more about the dealer, its creating demand in the dealers to know more about the consumer or simply leads in general. Whatever the companies who source leads feel about this, dealers seem to think it’s possible to do more and I am willing to be it’s related to an improved understanding of technology. People can buy a car now from Carvana like it’s a bar of soap on Amazon (I exaggerate I know) but all we can get from a person is a phone number? We can track them with cookies all over the internet and even hit them with an ad when we choose but you can’t tell me why they’re interested in my 2015 ……?

If knowledge is power for the consumer, it’s power for the dealer too. For example: I want to know if someone looking at my 2015 Tahoe has been contacting other dealers with that same Tahoe. That tells me they are decided and likely know they can afford the vehicle. On the other hand I also want to know if someone asking about my 2015 Tahoe has been contacting other dealers about 2010 Tahoes. Providing I’m not selling a wrecked car, this information tells me this person will be a “What’s your best price lead”, which means they likely can’t afford the purchase and are hoping I’m desperate enough to drop the price down to what they have to spend.

Conclusion: Quality has surpassed Quantity but it’s not just about which lead is more likely to buy, it’s also about just making sure we have access to more than just a phone number. Dealerships and their clientele vary too much for any outside party to declare with any certainty what is and isn’t a solid lead. A dealership armed with more information is a better prepared and more efficient business and that inevitably can explain the recent shift in priorities when it comes to the quality of leads.