IS IT A LEAD IF THE "CAR INTERESTED IN" IS NOT OUT YET?

[Jeff Sterns]

I spent an hour consulting a very good new car store in CA today. They are doing a scary good job in lead to appointment and a top of the average job in closing them once the client shows. But again, the show ratios are excellent. So I can't throw stones. Of course it's impressive that the Digital Marketing manager called to ask for best practices now that they are getting even more leads through chat. Funny how the best want to learn more, isn't it???

Regardless, what floored me was the number...nearly 30%...of leads that were in cars that just plain weren't out yet. not released. I need some DR wisdom here...

They of course look at their stats in a month to month fashion. The car doesn't exist. This must happen in every store on a onesy or twoesy basis but 30% (of 142 leads!)??

I need some advice! I hung up and said I'd have to think about that one....so here I am!
Part 2 is, does this niche get a special follow up process? They could "age out" of follow up before the car arrives!

Thoughts?? Practices? Thank you.

Jeff Sterns
VP of Sales & Business Development
CarChat24
jeff.sterns@CarChat24.com
Twitter: @JeffCarChat24
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"Helping car dealers sell more!"

 

[ddavis]

That is a very low lead count. Is this a highline franchise? If it is some kind of high performance sports car, you might be getting a bunch of kids. I used to get that with the GT-R. I put a picture with a price which cut back on the tire kickers. I also had it in my inventory listings with a complete description, price and "coming soon". Only one person, at the dealership, was allowed to show/sell the GT-Rs, so we had his contact information.
If this is a volume franchise, the lead count would make me question their marketing.

 

[john.quinn]

I worked with 15+ OEM's as a salesman and can assure you that the increase in the "wish list" leads is an annual occurrence at this time of year. OEM's start to float their "concepts" for the future while touting the newest, latest, and greatest right around the corner -- all while the newest models hit the floor. It's "Wish-List Extravaganza" time. Magazines run rampant. A good friend of mine might call this "Unicorn and Fairy Dust Season."

Thank goodness for us sales guys: there is a significant population of "gotta have it" customers that want the newest, latest, and greatest. Some of us can even turn shoppers into buyers. But yeah, there's a lot of dreamers out there too. And those dreamers want to talk.

At the end of the day, what's the problem? Too many leads? Don't know how/can't build relationships? Car sales is a month-to-month business, but if we're measuring lead sources month-to-month -- instead of aggregating at a minimum of 90-day increments, then we need some more training about what the business is really about and what we should be measuring.

 

[Kelly Wilson]

An inquiry is a lead-but I keep a few columns when it comes to our month end numbers. Hands raisers with no engagement as well as the unicorn and prerelease go into a group I don't count against my guy's actual numbers. They all have their own follow-up process. I send links to the more conservative blogs and monthly updates to stay in touch & in front of them as the person they can trust for their purchase. It's worked great so far!

 

[ddavis]

Kelly, I don't know about your franchise but I had asked mine to take me of the list of hand raisers. If the factory wants the customer to have a brochure, let them send one.

The one that used to frustrate me more than any others was the "make me an offer" leads. I used to get myself a cup of coffee and check my the leads early in the morning, some idiot offering me fifty cents on the dollar is not how I want to start off my day. I got that mess removed from the website.
I had one guy write a bad review on Yelp because I wouldn't accept his "reasonable offer".

 

[danoneil]

"Of course it's impressive that the Digital Marketing manager called to ask for best practices now that they are getting even more leads through chat. Funny how the best want to learn more, isn't it???"


I'm sorry, maybe I'm having a bad day, but your post looks like spam to me.

 

[Jeff Sterns]

That is a very low lead count. Is this a highline franchise?

This is a Ford store. It is in a lower population metro with 5 stores in market and one very dominant store in market (not them). They of course have their eyes on the big dog. This is a new digital marketing / internet sales dept with a new GM that is all about this. Their website traffic was about 4000 Unique Visitors so 3.5% +/- going to contact forms wasn't bad at all (I thought).

I am not in the space of advising marketing, only maximizing leads from whatever traffic exists.

The confusion for them (and me, not having a concrete or generally accepted answer) was that there are leads on cars simply not out yet or hard to get (for them) based on turn an earn (the big competitor has them). In their ratios, they (and admittedly, I) am struggling in classifying them. That's all. As a 27 year retail guy with someone coming to me, I was frustrated with not having a clear answer and thought this would be a good place to talk about it. I have no pride of authorship so if it got meaty here, I would simply direct the store to this conversation!

 

[Jeff Sterns]

At the end of the day, what's the problem? .

The problem (a small part of the departmental "coaching call") was simply when calculating ratios, was this a lead or not (in that month). I'm an old dog (27 years) in retail and I recall "up cards" and in order to not allow my sales staff to create their own fantasy ratios, my rule was "the German tourist asking for directions to the beach is an up" and "if you step on a cockroach, staple it to an up card and turn it in". I struggle with allowing anything to 'not count'. But, I can see the struggle in leaving it in for ratios. Then again, if it's every month then it plays itself out as they eventually close with proper follow and rapport (did I just answer my own question?). For 10 years I ran a store with some exotic franchises. After 5 years we looked back and saw that our average deal took 18 mos from meet (whether at a black tie, in the showroom or a DuPont Registry phone up from another state) to delivery. So for every "spot" we had a 3 year prospecting/ follow up time. I know they are all valuable. Just trying to answer their question to me regarding if the lead is a lead. I'm now thinking just plain, "yes". When they close (1 mo, 6 mos, 2 years) they will spin the data the other way because no lead went in that month (against that sale).

 

[Jeff Sterns]

An inquiry is a lead-but I keep a few columns when it comes to our month end numbers. Hands raisers with no engagement as well as the unicorn and prerelease go into a group I don't count against my guy's actual numbers.

OK, I'm not trying to be a pain....just look at all sides!!! When the vehicle does sell, the "lead" did not go against the numbers so the sale raises the ratio. Is this fair to the house (pay plan?). Scares me to have to decide what's a lead or not but still get sale credit if that occurs. I'm just sayin'

 

[Jeff Sterns]

"Of course it's impressive that the Digital Marketing manager called to ask for best practices now that they are getting even more leads through chat. Funny how the best want to learn more, isn't it???"


I'm sorry, maybe I'm having a bad day, but your post looks like spam to me.

I was impressed that a team that really was doing well with what they had, had he humility to ask a vendor (we spoke and he did know my retail / training background) for a scheduled call with his team. Whether I could contribute or not was not the point. I was impressed with the "no stone unturned" in looking for more and the coachability in him and them. That's all.

The spam part I agree. Jeff COACHED me (firmly, as he should have). I was simply jacked by the dealer's attitude and open-ness and thought it would be neat if this discussion produced some in sites. Self serving.... I wanted to show him I listened I wanted to do something about it (if I could). Not just drop it. Same as wanting a dealership client to see you did something about a conversation that had with you.

(I toned down my signature at Jeff's suggestion! I know that he and you guys only want the best for this forum)
THANK YOU FOR THE CALL OUT!! I invite it always!