■ Turning wishes into blessings: Sales acceleration with higher quality leads!
■ How can an automotive group effectively address this issue?
■ Additionally, what strategies can be employed to track them for optimal ROI successfully?
Source: Automotive Online NL, translated by AutoNews24
■ Jarno Pannekoek from the Herwers dealer group understands the importance of effective lead generation. With Marktplaats, Herwers has fine-tuned the art of generating leads to maximise sales.
Herwers is a family-owned business in the Achterhoek region, established in 1937. They are a brand dealer for Hyundai, Mitsubishi, Nissan, Renault, and Dacia, operating thirteen branches with a team of around forty salespeople. Jarno Pannekoek, the coordinator of central lead tracking, is responsible for ensuring prompt and high-quality responses to customer inquiries. He works daily to optimise their lead process and also serves as a coach to his colleagues. Additionally, he is focused on enhancing the profitability of the sales funnel, from the initial customer contact to order placement.
"We emphasise combining speed with quality in our customer responses," he states. He is supported by Key Account Manager Alexander Dumbraveanu from Marktplaats, who assists top dealers like Herwers in boosting their platform sales.
■ Average response time: 2 minutes and 31 seconds.
Herwers generates most of its leads through Marktplaats. With an average of 1,200 cars listed on the platform at any given time, sellers receive between 350 and 400 direct messages and phone inquiries monthly. These substantial numbers require a quick response. “On average, we respond to a message within 2 minutes and 31 seconds,” Pannekoek says with satisfaction. “This allows us to follow up with customers quickly, preferably by phone, while they are still engaged and in a buying mindset on their smartphone, tablet, or desktop.”
Pannekoek and his colleague Jelle are on standby to assist if all salespeople are occupied. “If none of them can answer the phone, we will,” he explains. “We are also seeking an additional colleague to provide further support. A quick response is crucial because customer interests and dynamics are paramount; we aim to be as close to the customer as possible.”
■ Process optimisation
Pannekoek has established an efficient "lead follow-up road" to manage responses and inquiries effectively. By using clear scripts and templates, salespeople can quickly respond and provide customers with the precise information they need at that moment. "On a tip from my colleague Brain, we uploaded several scripts to LEF, allowing salespeople to send personalised messages swiftly," says Pannekoek. “This enhances the speed and consistency of our responses.”
According to Pannekoek, discipline, structure, and a well-defined process are crucial for success. "We have a strict lead follow-up process that doesn't stop after just one contact attempt. We strive to reach a customer up to four times throughout the day, including evenings. This approach almost always allows us to connect with the customer and maximises the likelihood of a successful sale."
The follow-up process concludes after four attempts. Although a fifth contact can result in additional orders, the analysis indicates that the benefits do not justify the effort. “We prefer to invest that time and energy in pursuing new leads instead,” Pannekoek adds.
■ Insights from data analysis
Carefully analysing the effects has led Herwers to achieve progressively better results. “We found that leads who have a phone number and an email address have an average conversion rate of one in twelve, compared to one in twenty for leads without this combination,” shares Pannekoek. "This insight allows us to concentrate our efforts on leads with the highest potential." Interestingly, direct responses have proven to be much less effective on Sundays than on other days. "After following up with leads directly on Sundays for a year, we discovered that it only resulted in a 0.6% increase in conversion," notes Pannekoek. "As a result, we've decided to pause this approach for now, but we may consider revisiting it in the future."
■ Steering on calling
Here's a more explicit version of the text with corrections made:
Another lesson learned is that the old saying, "A caller is faster," still holds online. For example, when a customer calls us from Marktplaats, one in five conversations leads to a sale. In contrast, if customers only send a message, the conversion rate drops significantly, to one in twenty.
To address this, Pannekoek and Dumbraveanu have initiated a pilot program to encourage customers to call instead of sending messages. They are currently adjusting the interface and adding disclaimers to discourage customers from making unrealistic bids. Early results suggest this approach is practical. Dumbraveanu notes, "We are making steady progress together, and we continue to see improvements in the quality of leads and conversion rates."
■ Better filters
Herwers is gaining valuable insights into the quality of advertisements and communication. “One of the great features of Marktplaats is the variety of filters available, including those for different types of hybrids.” As the market experiences rapid technological developments, Marktplaats adapts quickly. “This is crucial when selling used electric vehicles (EVs). People have many questions, and it’s our responsibility to provide them with clear answers,” says Pannekoek. “That’s why, at the initiative of our purchasing department, we always include the ‘state of health’ of the battery in the title of our EV advertisements, which our dealers measure. People want to know this information. By providing it upfront, we increase trust and improve the likelihood of a sale.”
■ Range information
Pannekoek and Dumbraveanu are highly satisfied with their progress but continually seek improvement areas. This is why they collaborate on pilot projects. “One of our goals is to provide more detailed information about the electric vehicle (EV) range. We are considering data for six different driving scenarios: urban traffic, highway, and a combination of both, as well as for summer and winter conditions. This information will help address customer uncertainties and reassure potential leads. By doing this, we aim to reduce costs per lead further and per sale, ultimately increasing our return on investment (ROI).”
■ Effort leads to results
Finally, both experts have some urgent advice for car dealers looking to boost their sales as effectively as possible: “Lead generation through various platforms can be a significant advantage for car dealers, as long as they are willing to put in the necessary effort and continuously optimise their processes and systems.” Dumbraveanu concurs, saying, “Herwers serves as a model for other dealers. They maximise the potential of the leads we generate. We collaborate diligently to improve quality, reduce costs, and increase return on investment (ROI). Working with Herwers also provides valuable insights, prompting us to consider adjusting our processes. It’s a win-win situation for everyone involved.”
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