Leads are important, without leads you can't sell anything
This is the same whether you're selling Cars, Vans or Motorhomes and Caravans. The basics of selling is to gain Leads and convert as many of them into sales.
In this article I will focus on Digital Lead Management, and tips and techniques you can apply by using a CRM and your Dealer Management System to ensure you convert more leads into sales.
Whilst the statistics are that the percentage of customers who wish to actually buy a vehicle online is increasing, the percentage of consumers who will start their buying journey online is far higher – even if the eventual purchase is made in person.
The online consumer is also very impatient, they will often send enquiries to many dealers in quick succession through their web site and will expect fast replies.
Most Dealer Management Systems will have an in built Enquiry and Lead Management system, and if this is being used by the sales team then it is essential that leads are fed into this and distributed to the team as quick as possible. If not, we risk potential sales being lost to more responsive competitors.
Here are a few things that you need the Lead Management module of your Dealer Systems to do to help you sell more cars and improve your bottom line.
Most DMS systems have an in built Lead Management System that is more than fit for purpose.
The benefits of using it are that it is fully integrated with the Sales Administration, Customer and Vehicle databases and removes the need for re-keying, or duplication of customer data.
These benefits can outweigh the potential benefits of a stand-alone Lead Management System. At the very worst, ensure your Lead Management System is integrated with your DMS!
If you don't use a CRM system - either an independent or DMS integral one then this is a no 1 action point.
If your Dealer Management System doesn't have a useful CRM system, then this should be something you review later, but even with an Independent one, it's important your Sales team have access to your Dealer Management System - many leads will be from existing customers! Being able to review and see previous dealership history will help the Sale! Knowing for example, the car they own today and that it has been regularly serviced by yourselves is critical information to know when you approach the lead.
Gone are the days when it is acceptable for a Sales Manager to receive online enquiries, perhaps via email and then escalate them through the dealership manually.
It is essential that this manual step is skipped, and it is automated.
A human is not able to be responsive instantly to every lead that comes in – they may be away from their desk, perhaps at lunch and another dealer can be selling a car whilst a sandwich is being eaten.
It is relatively simple to have the DMS pick up these leads automatically, not only from the dealer’s web site, but also from other online forms of enquiry e.g. ebay cars, Autotrader, franchise partners.
By picking up, and acting on every opportunity promptly, the dealer can increase sales, which in turn will directly lead to higher profits.
Consumers typically will send several enquiries in a single session - to different dealers. Generally, the dealer that gets back to them first is in the driving seat to make the sale.
Give yourself every opportunity to be first!
Up to 35% of lost leads are for prospects that are still in the market to buy a car! You will find that potential customers have simply disengaged with your sales process - maybe they didn't get on with the Sales Executive or perhaps they didn't get all their questions answered.
By integrating your DMS Lead Management System with a proactive lead re-engagement from a third party such as Judgeservice, a good proportion of lost sales can be automatically converted back into sales prospects.
Whilst these solutions have a cost, the Return on this Investment is well proven. If you can sell one more vehicle every month simply by picking up on a small percentage of "lost" sales then this is simple.
Successful selling is about doing the job right. Dealers will spend lots of money in Marketing and Advertising, but when it comes down to it, if you can improve your conversion of Leads into Sales, this will add to the bottom line with very little investment.
It's true that "That which you measure will improve"
It's well proven, that by simply recording and publishing a small basket of Key Performance Indicators will improve these without doing anything. If you record and focus on improving them, then they will improve more.
But what are some good statistics to monitor?
This is a key item. How many leads are we getting. Many other KPIs are reported as a conversion ratio of the number of leads collected. it's important that this number is correct. You can ensure it is by having digital leads feed straight into your CRM - they can't be lost then!
How long is it taken you to respond to leads?
How many touch points do you make as a dealership, and by sales executive. This is a key item. You will note a major disparity in the no of contact points made by differing sales executives. This should translate into the conversion ratio. Focusing on bringing the Sales Executives up to the level of the "average" will benefit more than impvoving the best - the best will improve automatically as the others catch up! You can gamify this statistic very easily (gamification is a great way of improving KPIS - leader boards, prizes for coming top in a month etc)
No of Sales as a proportion of Leads. This figure will be much much lower than you think if you've not been recording this in full historically!
How many days between the lead being taken does it take on average to make a sale?
There are a host of other KPIs that are useful. The key is to pick maybe 5 to focus on. Start by seeing where you are today, and then see if you can improve each every month. Small improvements cumulate - the rule of 1% per week doesn't sound much, but adds 67% over a year! That should be straightforward!
Whilst the statistics are that the percentage of customers who wish to actually buy a car online is increasing, the percentage of consumers who will start their car buying journey online is far higher – even if the eventual purchase is made in person.
The online consumer is also very impatient, they will often send enquiries to many dealers in quick succession through their web site and will expect fast replies.
Most DMS systems will have an in built Enquiry and Lead Management system, and if this is being used by the sales team then it is essential that leads are fed into this and distributed to the team as quick as possible. If not, we risk potential sales being lost to more responsive competitors.
Here are a few things that you need the Lead Management module of your Dealer Management System to do to help you sell more cars and improve your bottom line.
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