• This thread is just the tip of the iceberg.The people ahead of the curve aren't Googling for answers — they're already in here, having the conversations you haven't found yet. DealerRefresh is free.Get the full picture →

Is Your Dealership Chat Used or Abused?

Great post Joe and perfect timing.  

I've been blessed in the past 3 months to have a number of industry chat companies open my eyes to the importance of chat and handling chat, where in the past, I let my own prejudice cloud my judgement.  Since I wasn't a chat user, I didn't consider it important.  Duh!Now that my eyes have been opened, it still amazes me that only 20% of dealer websites have chat!   Opportunity is knockin'!!The other key point is that there is a huge difference between having a chat button in the header of your website where a consumer has to click it to start chat vs having the chat pop-up over the screen. Anyone who is dismayed with chat often has chat setup passively, which is not what I would recommend to maximize the channel.

Is Your Dealership Chat Used or Abused?

Very interesting post with excellent information!  I have been called out by mr Thompson so I figure I will drop my two cents. I have been lurking and haven't posted in a while, so hear I am.

When it comes to dealer answer "online percent" is important.  If chat isn't available it certainly can't "explode", right?  As many of you will see with the top chat providers if you are online majority of the day or 24/7 you will see a great amount of chats if implemented properly.  

I personally have never been a fan of outsourced until a few weeks ago.  I evaluated what dealers tell us and my expectations for the dealer being ran like I ran them and its just not the same.  I have been converted!  I believe!  EVERY dealership should have some sort of answering service either back up or full time.  

I have pulled reports and taken a look at our chat answering service and the results are amazing.  Their are 3 primary spikes that you MUST have chat available for.

Mon - Friday 10am to 4pm
Mon - Thursday 8pm to 11pm
Saturday 9am to 1pm (these seem to be your buyers chatting before they head out to buy)

Math for you: Online more = more chats! VERY SIMPLE

The problem is when you leave dealership personell to answer chats they may go take a smoke break or go to lunch.  They go offline automatically and now what?  You lose conversions during those hours.  Same with dealerships who choose to only have chat answered by the answering service during business hours.  If chat is a conversion tool why would you take it down after hours or on the weekend when people are still shopping?  We believe but just not 100% i guess.  If numbers are numbers, more chats = more sold cars.  I mean if we are having your sales staff chasing chat leads from an hour ago than we should get them as many as we can right? I kind of think its funny we can trust our sales people with the chat customer after they have the information but not before.  

So to wrap up my very long comment......I agree with your post and think you did an amazing job putting this together for everyone as usual.  Chat is a huge hit right now and everyone has their own way of doing it.  You found what works best for you and your stores.  That is half the battle and one less thing for you to worry about.  The company you chose does a great job and I am glad you are 100% bought in with chat.  99%, wow that has to be some sort of record.

Is Your Dealership Chat Used or Abused?

I remember the conversations via text and live with good Ol Uncle Joe about chat...... "Do you need to monitor it if a 3rd party runs it?" asks Joe
"You need to monitor it all if you expect results, don't you?" replies this young jedi

Another great post from Uncle Joe....way to share the knowledge my friend!

Is Your Dealership Chat Used or Abused?

I remember the conversations via text and live with good Ol Uncle Joe about chat...... "Do you need to monitor it if a 3rd party runs it?" asks Joe
"You need to monitor it all if you expect results, don't you?" replies this young jedi

Another great post from Uncle Joe....way to share the knowledge my friend!

Is Your Dealership Chat Used or Abused?

Joe -- you're amazing.  Where do you hide the red cape??  Alas, we've had two forays into the chat world, several years apart, both with prominent, leading-edge companies, and both complete failures -- the last trial ending earlier this year.   Par for the course in our particular e-commerce-less-driven marketplace - no interest whatsoever from the customer-base. Like 25K-30K uniques a month, 6 chat sessions.  Pop-ups, pop-unders, pretty-girls peeking around corners, Big Green buttons, rovian-like "Hey, Look at me!!" stuff -- no interest.  I'm sure well try again in a couple of years, see if how much the rest of the world has caught-on in our neck of the woods.

Is Your Dealership Chat Used or Abused?

Joe - Once again you put together a dynamite post that has some real data and first hand experiences from a REAL LIFE CAR DEALER.  

I have read thousands of chats (our operators took) and it still amazes me how comfortable visitors are with a chat operator.  There are many instances where I have witnessed a shopper volunteer the entire quote, trade in value, and Salesperson's name at the competitor down the road. It also can act as a pretty good monitoring tool for you dealership.   Visitors are not afraid to rant to the operator that service forgot to book them an appointment OR Jimmy in sales didn't respond to their Trade - In Evaluation.

Self Managed Chat - I have a love hate relationship with a dealer managing their own chats.  It can be done, and there are dealers all across North America that have turned into chat warriors for their dealership and are seeing big results.  Chat is not at all like dealing with a live person on your lot and it can be quite frustrating.  When you put a fully commissioned sales staff member behind the chat wheel and his first 5 chats of the day are service related or "Does Joe still work there?? I only deal with him" it can quickly turn into a karate chop through the monitor.  In a perfect chat world we would have staff that can handle their own chats (effectively) and 3rd party doing the back up when dealer is unavailable or after hours.

If you are going to go the Self Managed chat route all I can say is make sure you deal with a company that has a Pro Active Greeting (pop up / drop down).  This is where a huge portion of the chats come from.  Not too long ago I had a dealer ask me to disable our Pro - Active greeting as he felt it was "intrusive" on their visitors.  What was the results?? The lead train came to a quick stop and we turned it back on a week later.

I have met some super smart people here on DealerRefresh, and can tell you that the main players in the chat arena have some talented employees and we are always thinking of ways to get your dealership more leads!!!! 

"I would have got those leads anyway!!!" - Chat will not hurt your original website conversion, it will turn "just looking" into a name, email , and phone number. I promise :) 

It would be great to hear what Ryan Lucia from Contact at Once had to say, that guy is super smart.

"Am I really missing out on leads by not having chat on my website????" - The answer is yes.

Cheers,
Ryan Thompson
@ryan_carchat24:disqus 

Is Your Dealership Chat Used or Abused?

Almost 50% of all Chats are from shoppers looking for a 'Search Helper'.  This is IMPORTANT on so many levels.

To our dealers that are using self hosted chat. 

MANAGERS: 
Your web visitor is getting frustrated trying to find "that
special car" (i.e. low mile, 7 passngr SUV with DVD and fold flat
seats).  WEB SHOPPING IS A TASK and Chat is a shopping tool.

Car shopping is a 19hour, multi-week shopping journey, help them shop, give them the easiest
shopping experience, I can promise you, they'll not find it any where else. This is the best incentive to come back
to your site.   Impatient sales reps (aka lot lizzards) should NOT be
chatting. 

Next, if your team is un-trained,  chat is a time sucker. 
Your reps will avoid chat because it's low ROI. Low ROI creates un-staffed chat & that is
costing you sales. Chat done right, should be one of your top3 lead
systems.

SALES REPS:
This is a fantastic doorway into the shoppers world. Finding
a low mile, 7 passngr SUV with DVD and fold flat seats is HARD TO FIND
and clearly this a family that plans on hauling stuff.  Avoid template
communications with this shopper. If someone hits you with "I'm looking
for a low mile, 7 passngr SUV with DVD and fold flat seats", always
reply with more questions. Keep layering on the questions to build a
great picture of their needs and deliver your answer by email.  If
you're not getting emails in 90% of these chats and phone numbers in 70% of your chats, then YOU are doing
something wrong (my 3rd party chat vendor, Activengage, gets emails in 99% of all chats).

Is Your Dealership Chat Used or Abused?

Rubix_Chat.jpg

Do you really know what your dealership website chat is doing for you?

Those of us with chat on our dealer sites know that chat is an amazing lead generator, but, do you really know what your chat is doing for you? Likewize, do you really know what chat is doing for your shoppers?

It’s been a while since I took a good long walk in our chat records, while reviewing them, I see the chats fall into common classes.

  1. Credit Questions
  2. Trade-in Questions
  3. Search Help Needed
  4. Purchase Intent
  5. Miscellaneous

Credit and trade-in questions are driven by what the shopper possesses. Examples like: “I have poor credit, or, “I have a 2003 Kia that I owe $8900…” These are chat questions that you can easily answer via a template.

Ok, so what’s 'Search Help' and what’s 'Purchase Intent'?

  • 'Search Help Needed’ chats are questions from people that need help hunting.
  • 'Purchase Intent’ chats are from people that want to pull the trigger!

REAL CHAT EXAMPLES of a 'Search Helper Needed'

  • “Interested in an suv with good mpg
  • “we would like also to look into all 3rd row seating SUV's under 20k mi
  • “is there any way to search just for 7 passenger vehicles what other models besides minivans and dodge journeys seat 7 traverse is too pricey”
  • “I am looking for not sure what kind of car but around 2008 for around $12,000 if possible. In that type of ball park. Thank you.”

REAL CHAT EXAMPLES of ‘Purchase Intent’

  • “…Stock# W16242 is a lincoln where is it located , is price negotiable?”
  • “I like Stock# k35101, I am interested but need to know are your prices negotiable?”
  • “I have a $4,750 trade-in, $2,000 down payment. It shows the price is $35,990. Is there room for negotiation?”
  • “…I am buying with cash and will be looking to negotiate the best price I can get and purchase something from somewhere very soon.”

‘Purchase Intent’ or ‘Search Helper Needed’ both need 5 star treatment AND both need different sales techniques.  ‘Purchase Intent’ questions are an opportunity to aggressively ask for an appointment, whereas ‘Search Helper Needed’ questions are a great window for the sales team to ‘wow’ the shoppers by really understanding their needs.  I am not saying the Credit and Tradein questions are inferior, all I am saying is each chat question falls into 5 unique categories and they all need to be handled differently.

Here’s a breakout of the last 200+ chats on my site:

Topic
Count
Percent

Search Helper Needed

91

44%

Purchase Intent

26

13%

Credit

48

23%

Tradein

19

9%

Misc

24

12%

Total

208

The chat topics above break into smaller sub-topics. For example, is the Credit question about bad credit, or, just general credit questions?  The ‘search helper’ question has many sub categories, the  most common question revolves around a complex search query like “I need this and it needs to have that, but, it can’t cost more than…”  Here’s an example, this chat that came in minutes ago “…do you have any extended caB or quad cab trucks, 4wheel drive under $15000? I want payments under $350”

Here are the sub categories I found FYI:

Topic
Sub-topic
Count
Percent

Credit
bad credit
27
13%

Credit
13
6%

Credit App Status?
8
4%

Search
search helper (complex query)
47
23%

search helper (by $ or payment)
32
15%

search helper (wants details on car)
9
4%

search helper,  car has warranty?
3
1%

Purchase
Purch Intent, has car picked out, wants Appt
4
2%

Purch Intent (“where is this car located?”)
3
1%

Purch Intent (“car in stock?”)
13
6%

Purch assist (make an offer)
6
3%

Trade-in
Tradein
19
9%

Misc
After store visit, follow up chat
5
2%

Translation
3
1%

Carfax request
2
1%

Deliver out of State?
4
2%

Offer Military Discount?
1
0%

Young, 1st time buyers
5
2%

transfer car to other store
1
0%

prep for purch questions
3
1%

Total
208

Is your chat being used or abused? Who’s running your chat? You or a 3rd party service?

Chat falls into 2 distinct classes. Dealer Chats and 3rd party chats.  These are 2 very different management problems with very different needs.  Every organization is different.

Self Hosted Chat:
No doubt about it,  if your not trained and prepared, chat can leave a good sales rep tired and bloody.  Chat shoppers can eat up 45 minutes, suck you dry, and after all that, refuse to give you any contact info.  Ugh, someone shoot me!  If this happens to you (or your team),  then most likely this has created another problem, chats get ignored!

If you self-manage your chats, you need great templates and a trained staff to “work” that chat shopper.

3rd Party Chat:
There are many 3rd party chat companies to choose from, and many are regulars here.  One of the best threads in our forum is run by Shereef Moawad President & CEO of CarChat24. Shereef ran multiple case studies where he clearly demonstrated his team’s ability to sell cars. It’s a great read!

Chat Vendors, drop a comment here and put a flag in the sand! Dealers, tell us how your chat is doing these days!

In my organization, we started self-managing our chat and got OK results. I felt we were leaving cash on the table, we took the leap and employed ActivEngage to manage our chats. The lead counts and sales exploded! It was nice to read the chat records and watch the ActivEngage chat team consistently recognize a shopper with ‘purchase intent’ and each time they aggressively go for the appointment! For us, 3rd party chat service is our highest ROI vendor.

Lastly, to our web site vendors, when you build a site for your clients, you’re really building a site for their clients, I can’t think of a better tool to satisfying shopper needs than listening to phone calls and reading chats. You can watch me dig to find more gems in our DealerRefresh forums: The Used Car King Make Over Diary

Facebook: what has it done for you lately?

Wrote this for our CEO's the day aftrer Digital Dealer 10

Likes or Links-Which one
Stinks and why Social Media is BS - Kevin Frye DD10
or                                                                                                                                                               
What the closest to a Car Dealer Social Media Expert you will ever meet
is – Working for You.

I’ve got real bad news guys - Nobody wants to be our Friend on facebook or follow us on
Twitter!

Proven Fact +Lived Reality if we didn’t bribe people to Like
us on facebook our only fans would be us.
My goal got us 350 fans on the GB facebook page by emailing our customers a
“like us” contest. We hit that 4 months ago and stopped the emails and contest.
Our fan count now – 359 and we still post and engage regularly.

2011 Polk study “The Role of the Internet in new and used
Vehicle Purchase Process” revealed an interesting finding regarding the
influence of social media sites: 97% of buyers who used the internet to shop
indicated that social media sites (not review sites) did not influence
their vehicle purchase

Our customers are not talking about us on facebook or
Twitter.  If they have a Twitter account
they may complain about us. I have viewed close to a hundred dealer facebook
pages and there is very little interaction with dealer’s posts.   What do they care about?     What’s In It for Me!

So is Social Media important to us?  Yes it is, but it’s going to be Links, Likes and Good Reviews that
will drive traffic to our sites and that will help us sell cars and service
right now.  Social Media Branding may
sell cars and service later.

Simply put, facebook “likes” & good reviews look to be
the new links of the future,  as the
search engines are indexing the social media and review sites heavily as they
look for the personal endorsements  to help them serve up relevant results.  Web 2.0 gave us a voice and Google is paying
attention. We are starting to see star
ratings in PPC ads.

Propoised short term Social Media Plan for 2011:

Our facebook sites need to be an extension of
our websites with inventory links, reviews, coupons, like us contests, events,
etc. Our facebook pages have to have the What’s
in It for Me for our fans.

We build our fan base with” Like us Contest” and
in store contest handouts.

Our wall has to be informative, entertaining,
engaging and sprinkled with reviews and Specials/Coupons.

We monitor SoMe sites for comments on us and
engage with them as necessary. Hootsuite/Google .

Post content daily to our Blog that auto
post that to facebook and Twitter.

We feed
the Google Gods lots of Links, Reviews, and relevant content pages.How do we do all this? More bad news, our Managers see no
value in SoMe and have no time for it and that’s fine. Let them keep selling
cars!

We enlist a part time
Content writer (a local college student, family member, employee) who would be
tasked to:

Help write content pages for our sites add them
to high page ranked auto sites, blogs, CarDealer Wiki and back link all pages to
our sites content pages.
        
Monitor SoMe sites with Hootsuit / Google Alerts
accounts for each rooftop.
    
Write Blog posts and create YouTube Videos that
link to our sites plus facebook and Twitter.         
Write content Newsletters on PRweb that create
quality back links back to our websites

SoMe Fact:  Online Bad or Good Reviews will always have
the most profound effect on our sales and service business.

Facebook: what has it done for you lately?

We are seeing similar results from Facebook, and I view it more as a communicative medium to show the personality of your dealership and help with reputation management as well.  However, if SEO is your focus than you would be naive not to pay attention to how social media is being integrated into the SERP.  Getting people to share your content and mention your dealership name (citations) is very important to SEO going forward.  Back links will always be important, but social is a long term play helping towards your relevancy with a search engine.  I agree with SEOGuy that Facebook is just a small portion of social media and that you should be looking into other areas that can provide with with SEO results.

Doing well with social media isn't easy and that's why it's called earned media.  The mediums may be free, but being successful isn't easy and takes a lot work which means resources and buy in from your dealership principals.

Good post - this is a challenging area for all small businesses.  In my opinion, you shouldn't discount social media as part of your SEO strategy just do to you Facebook experience so far.  Good luck!

Facebook: what has it done for you lately?

I agree 100% with this but I still use Facebook every single day to sell more cars.  It's very simple, if they are buying a car from me, they aren't leaving until they have "Shared This Vehicle" as an easy way of telling friends and family what they just bought.  The couple I had this morning did it as we started paperwork and by the time they were done, 5 comments had been made on their status update.
My opinion is that this is the only way to use facebook to sell cars without being intrusive.  The customers love it because it saves them 3 or 4 phone calls while letting their friends know that they are buying from us.

Facebook: what has it done for you lately?

I also feel that paying a 3rd party company to manage your Social media marketing is a waste of money...period. As an Internet director I focus on driving traffic in the same ways you mentioned:

 "If you’re trying to increase sales, then tackle the SEO side of things
first. Providing useful, meaningful content on your website, strong
backlinks and an easy-to-navigate web design can go a long way."

However, as a former SEO consultant who continues to stay in the know, I (half) disagree with your post. Yea facebook is nice to have fans blah blah etc and doesnt really help sales, But FB is about one percent of social media, and the best way to build quality backlinks is via social media (maybe not on fb but other sites). I have studied SEO for a long time and a transition is occuring where SEO and SMM are really going to merge. Everyone knows that google is the search engine to focus on mainly, and with google+ being released (ive tried it and it has VERY serious potential) the search engine is now a social media site. I would never advocate hiring a third party SEO firm for a car dealership, but having a social media strategy that is handled in house I feel is VITAL. Whether its an internet manager, the sales reps, or a social media manager, you should have someone who knows the company well and can speak as the company.

As for Facebook, we have just a few thousand "fans" and we get about 5-10 deals a month via FB (mostly by letting the sales reps use FB during downtime, and training them how to do it correctly!). But more importantly our engagement is pretty good which means that the next time those fans need a new car we are at the top of their mind!

So in short please don't attack social media, Because soon the whole internet will be "social media" :)

Filter