Leads? Customers? What is the Difference?

[Rick Buffkin]

Why is there a need to separate or classify them differently??? Personally, I think that is part of the issue now-a-days. Treat them all like "Customers" and I think the dealership will benefit more plus, the "Internet Customer" will feel more like a customer and not a "Lead" or a "Non-Transacting Entity" or some other type of label. I think the terms and labels that are used internally does play a influential role in a manager / reps attention they give the opportunity.

 

[john.quinn]

Why is there a need to separate or classify them differently??? Treat them all like "Customers"

Keep calling, emailing those customers who never respond? For how long? A week? A month? Maybe a year? Some tough math to try and keep-up there...

The fact is, "Leads" are just words on a piece of paper. Some are TOTAL crap. They get the same billing as an actual person/identity? Not realistic -- the best systems and processes have some type of verification logic, or simply call it a filter, if you prefer.

By the way, you cannot have an Opportunity before you have an actual Customer... but not all leads create Opportunities

 

[Rick Buffkin]

Me personally, an opportunity and customer are one in the same and it doesn't matter if the opportunity walked into the showroom, drove into the service drive, called or emailed into the dealership. It's still a customer in need of or looking to purchase a product or service that I offer. Labels cause more damage than I think people realize. Take the term "Boug". Once a Customer is labeled as a "Boug", reps and managers attitudes change towards that particular customer. They may not be rude to them but I think we can all agree, in the majority of cases, something changes! They're still a customer, they just can't buy a car but, they can probably afford an oil change or a part out of the parts dept. But, the sales staff doesn't see that and in most cases, that customer is completely written off. It happens in alot cases when a rep needs a quote on a car and they go to the sales tower. If the rep says," I need a quote on xyz car for a customer", in most cases they normally get a diff response from a sales manager then if they say, "I need a quote on xyz car for a internet lead or phone up". I'm not saying in all cases, but in alot situations, thats the case. In alot of situations, the manager doesn't put as much emphasis on that quote to be given to that phone up / internet lead / Customer because of the way the Customer was labeled by the sales rep who needed the quote. I wonder if Carvana labels their Opportunity's as Internet Leads, Phone Ups or Customers. With DDC's digital retailing piece. Are those opportunities simply Internet Leads or, are those Internet Customers looking to work and structure a deal online. I've heard it pitched both ways. At the end of day, I try and ask myself how would I want to be referred to if I send in a inquiry for a product or service over the phone or internet. My answer is simple. I would want to be treated and referred to as a customer! That's just me though

 

[john.quinn]

I hear what you're saying Rich, but I think you're missing the point. It's not about labels at all -- in every example above, you're working with a Person -- a customer. You're not getting prices for "Leads." Call them whatever you want and avoid any labels you don't like -- that's all semantics.

This is absolutely about understanding different segments in your database -- and the ability to differentiate between X, Y & Z in your database. Because there is no argument that there is a maturation path -- a road to the sale, if you will -- that differentiates where various entities (and non entities) are in the purchase cycle.

Let's say you're at the dealership bright and early one morning, and start chatting-up a customer at the coffee station. After about 5 minutes, you learn they're in for their 1st Service -- just turned 5,000 miles on their new baby. Absolutely a customer, right? (Ask your owner). Is that a Sales opportunity? Nope.

What happens if your system can't differentiate or understand that distinction? (Answer... you do a lot of radio and TV advertising because you spend just as much "spraying" your database)

 

[Rick Buffkin]

I think your right @JQuinn . Maybe I am missing the point here. Sorry about that! I do agree with you.

 

[john.quinn]

I think your right @JQuinn .

Bummer... been a while since I had a good debate here... LOL.

 

[Tallcool1]

We segment into 3 categories.

Lead, Prospect, Customer.

Lead is an "inquiry". This segment has done nothing more than submit a form of some sort.

Prospect is someone that is "engaged" in some sort of communication with us. This person responds to phone calls, emails, or text messages. This person may be a phone call that will share their contact information. They may be a walk in that stops to visit, test drive, negotiate, or whatever. The point is, this person is actively engaged in communication with us.

Customer is someone that has purchased a vehicle.

We segment them into these categories because we follow up with them differently. This is the only reason that we have these different categories.

I tend to also agree with @JQuinn in that it is somewhat pointless to actively pursue leads that will not engage. Sure I believe in trying for a given period of time, but not forever.

 

[john.quinn]

We segment them into these categories because we follow up with them differently. This is the only reason that we have these different categories.

Sounds reasonable for the sales department. But it starts to break down a bit when I put on my GM or Marketing Director hat, and I'm looking systemically at the entire operation, where Fixed customers dwarf the amount of people interacting with the Sales department.

 

[Tallcool1]

Sounds reasonable for the sales department. But it starts to break down a bit when I put on my GM or Marketing Director hat, and I'm looking systemically at the entire operation, where Fixed customers dwarf the amount of people interacting with the Sales department.

I couldn't agree more @JQuinn , and if I had fixed, I would absolutely feel the same. I am an Independent, and am sale only.

Excellent point as it actually relates to 99% of this group.