Cost of a conversation

[Alex Snyder]

@Alex Snyder If engagement is high, and conversion to an appointment is low.....then they know they need training.

That's a good KPI to measure by. In hunting the cost of a conversation, that is definitely one to consider as well

However, I hope you would agree that 19 activities per lead is better than many dealers.

I totally agree and have witnessed what this can do a dealership many times now. The stores that focus on engaging customers over just beating the lead clocks are the ones who are growing their sales outside of the market area, selling more used cars, converting more customers from competitive brands, and hold a lot more gross.

And you're right, technology can only take you so far. Humans still play a giant role.

 

[Steve Roessler]

That's a good KPI to measure by. In hunting the cost of a conversation, that is definitely one to consider as well



I totally agree and have witnessed what this can do a dealership many times now. The stores that focus on engaging customers over just beating the lead clocks are the ones who are growing their sales outside of the market area, selling more used cars, converting more customers from competitive brands, and hold a lot more gross.

And you're right, technology can only take you so far. Humans still play a giant role.

. Just trying to help dealers apply these practices are another conversation. It's a culture shift

 

[JoshS]

Great example of how easily a metric can be twisted to make a marketing campaign look successful. If I've brought in 200 leads that are converting to conversations at 16% then I am spending my money badly on the leads I am bringing in. There is technology for dealers to optimize between all these marketing channels which are thinking about the lead conversion metric rather than all the other smoke in mirrors that come before that.

 

[Steve Roessler]

Great example of how easily a metric can be twisted to make a marketing campaign look successful. If I've brought in 200 leads that are converting to conversations at 16% then I am spending my money badly on the leads I am bringing in. There is technology for dealers to optimize between all these marketing channels which are thinking about the lead conversion metric rather than all the other smoke in mirrors that come before that.

200 leads converting at 16% to engagement????? Or to an appointment? 2 Different metrics to be measured here

 

[JoshS]

200 leads converting at 16% to engagement????? Or to an appointment? 2 Different metrics to be measured here

The key metric here is the sale. I merely took the example to explain it. If you work backwards - X sales from Y leads and Z clicks - as opposed to the other way - you can measure your marketing strategy successfully.

 

[Marc Lavoie]

200 leads & 16 sales is not bad, what's the timeframe? 30 days?

 

[Steve Roessler]

The key metric here is the sale. I merely took the example to explain it. If you work backwards - X sales from Y leads and Z clicks - as opposed to the other way - you can measure your marketing strategy successfully.

@JoshS I agree about it being all about the sale. However, most people only track 1) Leads 2) Appointments 3) Show 4) Sold. Lots of black holes missing. How do you schedule of an Unengaged lead? You can't. It all starts with engagement and that should be measured first to increase performance. Think about it.

Example 1
100 internet lead
40% Engagement
= 40 engaged leads
16 appointments schedule (40% conversion rate)
8 show (50% conversion rate)
5 sold (5% closing)

Example 2 (Keep all metrics the same but increase engagement)
100 internet lead
70% Engagement
= 70 engaged leads
28 appointments schedule (40% conversion rate)
14 show (50% conversion rate)
8.75 sold (8.75% closing)

 

[Daveg778]

It is tough to get dealers to think about quality responses from the customers' perspective after 20 years of fighting a lead clock, OEM mandate, difficulties with the desk, lack of training, and the sheer volume of leads.

Alex, I agree whole heartedly! Particularly with consistent training. I have been with EFG Companies as a Trainer for nearly 8 years now, and it seems when it comes to all things Lead Management, a lot of dealerships have little to no consistent enforcement of CRM policies, change direction at the drop of a hat, and lack good training on CRM/BDC fundamentals.

 

[Cayley]

Dave I am curious why you think dealers have no consistent direction with CRM programs.
This is key to managing leads, but to succeed it requires constant steady follow up from salespeople.

 

[Steve Roessler]

@Daveg778 That is true, but the fundamentals are changing as the Customer has Changed. So why do we define insanity. Do something different vs "Doing the task to do the Task" mode. That is the motion many dealerships are in and there is no value to the person. So, they don't do it. Meaning, Do you value a Day 5 task more than a day 45 task? The answer, if you ask me, I want the day 5 task. Why? Customers are buying cars 80% in 14 days. I may sell more if I focus on the "meat and potatoes". But dealers are assigning day 60, 90, 120 etc and I will tell ya, I would not do it. Rather, have technology do the later. Listen to the data, focus on the customer's buying pattern and execute. Dealerships will then produce if laser focused. .