Service to Sales

My favorite saying is, "let common sense prevail!" Dealers, GM's, Automotive professionals here is some common sense I'd like to share.

Internet Leads have created a ton of uproar in the automotive industry since the early 2000's. Dealerships even created whole departments called Internet Departments (I even had my fair share of chasing the dream - Click Here. With the information provided we deemed the Internet lead the lowest hanging fruit....and by doing so created an extra layer of expenses chasing a pipe dream!

First we all know by now that 90% of all customers use the internet prior to purchasing a vehicle, constituting for 12-15% of total sales. 90% look but only 12-15% purchase?

I'll answer that question; lack of an effective work flow process, activity generated/completed by the crm/sales person/bdr to create two way conversation, and once the two way conversation happens sales person/bdr/SM has poor phone skills.

3/4's of all Internet shoppers buy between 14-90 days in which 42% buy before day 30, so the sweat spot is between 14-30 days, right? Why then does the average dealership only follows up with internet leads for 7-14 days if at all?

I'll answer that question to; unconscious incompetence-dont know what you don't know or conscious incompetence-knowing you don't know something but not doing anything about it.

Industry standards say 20% will set an appointment, 10% show, and a 3-4% will deliver. What a horrible ROI. Please stop jumping over the dollars sitting in the dealership for the penny's that will be made spending money on internet leads, money on staff and managers, chasing after the same customer every other dealership is, completing days more work before you even set the appointment.

Now if your "internet sales manager/BDC/sales person knows how to set a solid appointment you have a 44-66% chance of them showing. Once they show you have a 50% chance they will buy (mind you this is the customer that shopped the internet, you paid for, so profits are going to be real low taking the extra expenses occurred from getting the customer into the store).

Answer these 5 questions;

1. Which source is the easiest to sell?
2. Which source typically has a higher closing ratio?
3. Which source typically has a higher gross profit?
4. Which sources takes less time to sell?
5. What source is more fun to sell?

If you answered all 5 questions with, "repeat and referral" you were 100% correct! Repeat and referral customers close statistically at 66% not like an internet lead at 3-5%. Who are your repeat customers? Yes your right your Service Customers. Service customers show 80% of the time for their appointments because they trust you, not 50% of the time.

So instead of dealing with a customer with a show rate of 50% and a closing rate of 3-5%, start dealing with a customer that will show 80% of the time and close 66% of the time, easier to sell, higher gross, takes less time to sell, more fun, and here's the "KICKER" - THEY PAY US TO COME TO THE STORE!!!

#'s accumulated by taking inbound service calls and making outbound retention calls.

November Service # Scheduled 941 - 758 showed 80% show ratio for CP + W RO Revenue of $230,197.00 - Avg Rev $659 

November Sales # 84 shows (42 exchanges)

Total Revenue (Sales & Service) = $315,037

Cost to accomplish task $13,000!

Message me direct stop the leak lets double your Service RO's set an additional 100-160 service to sales appointments off your current customers and get 2017 off to a great start!