Lead Conversion

The conversion rate of a dealership’s website is the most commonly used metric to measure the success of a website’s success at generating leads.  Conversion rates are usually expressed as the percentage of traffic that submits a lead to your website.  Obviously, the higher the conversion rate, the better it is for your auto dealership.

Most analytics tools calculate conversion rate information, but they don’t tell you how to work on increasing your conversion rate.  Here are a few things you should do to increase your conversion rates:

The Look:  This depends, mainly, on your website provider.  Sites that are too busy, too colorful, or just unappealing to viewer’s eyes will prompt a quick click off of the page.  Make sure that your website looks clean, nice, and un-offensive.

The Content: It’s important that your website contains valuable information.  For auto dealers, this typically means that your inventory descriptions are worthwhile and complete.  It could also mean that you have a blog that offers information that car buyers can actually use.  Don’t just stuff keywords into your dealership site; make sure the content is worth reading.

Ability to Navigate: This often goes hand in hand with website design.  If a visitor can’t easily determine how to find the information they are looking for, they’ll click to another dealer website.  Make sure your navigation bar is clear and that the most important sub-pages can be reached with just one click from your home page.

Technical Issues:  Your website should be built so that the majority of web users can view all components.  If someone has to download a program to view something, chances are they’ll click off.  The same goes for pages that don’t load quickly enough, or not at all.

Make sure that your dealership website has valuable content, looks appealing, loads properly and is easy to use.  Work with your auto dealer website provider to ensure that your site is properly set up to increase your conversion rates.

On Thursday, I’ll write about how to use your marketing efforts to increase your website conversion rate.

Connect Almost Instantly to Your Internet Leads

Studies show that Internet leads expect to receive a response from a dealership more quickly than ever.  According to the CapGemini’s Cars Online 07/08 report, 34% of Internet leads want a response within 4 hours, 8% want an instantaneous response, and almost 50% are willing to wait up to 24 hours.

Why not exceed their response time expectations by utilizing an automated instant lead connection system that can put you into phone contact with incoming leads within seconds of generation?  An instant response would surpass what 92% of your leads are expecting.  There are a number of companies (AutoUSA, AutoBytel, Dealix, and DealerOn, to name a few) that offer this type of exciting web tool.

So here’s a brief synopsis of how these systems work:

• An Internet lead is generated
• After the data is scrubbed, an automated phone call is placed to a salesperson
• The salesperson is read the lead’s information, then prompted to press a pre-determined number to be connected with the lead
• The system automatically dials the lead, connecting them with the salesperson.

The likelihood of being able to get an Internet lead on the phone decreases significantly over time:

This means that the sooner you call your leads, the more likely you are to get a hold of them, allowing you to achieve that first step down the road to sale.

This is an amazing technology that increases accountability while leaving little room for salesperson error.  Imagine the impact that you will have when, while still sitting at their computer, your dealership is the one to call to find out more about the vehicle your lead is looking for.  The fastest response times are what all dealers are looking for, and nothing is faster than this type of program.

Of course, each version of these programs is a little bit different.  For example, some programs will connect you with any Internet lead, some just to leads that come through their portal.  The delivery message and information given is different, as is the number of options given to the salesperson during the phone message.  Exploring these options, comparing products and finding the program that works best for your dealership is what’s important here.  This is an awesome technology that, when used correctly, should increase your closing rate and sales.
What do you think?  How familiar are you with this technology?  Tell us about the success you’ve had using this type of software, or leave any questions you might have.

For Dealers Who Can’t Use Cash Incentives (Or Want to Try Something New)

Online incentives are often what convince hesitant website visitors into actual leads.  While most dealerships use cash incentives, some manufacturers or state governments don’t permit this type of Internet offering.  For example, both Honda and Acura have very strict guidelines about what their dealers can offer, and states like Illinois, California and Texas have legal guidelines that businesses must follow.  It’s extremely important that you check and are up to date with both OEM and government guidelines (your State Attorney General’s office is a good place to look).  Both entities are generous with their fines and typically not afraid to hand them out.

If you’re at a dealership that either can’t offer cash incentives, or just want to try something new, what are your options? Thinking outside of the box will help here…what do your customers want?  Take a look at who your customers are.  Consider conducting a market segmentation to find out what is important to them so that you can offer what they want.  If you can find out the types of things that consumers want but aren’t buying, you’ll be better able to offer non-cash incentives that are relevant and motivating for these potential customers.

Of the non-cash incentives that I’ve seen work are lately, the most common seems to be a gas card.  The trick to getting this to work is making it a decent dollar amount.  Those $25 and even $50 cards aren’t going to drive much traffic.  Consider making them available to all who test drive instead of just purchase a car to up your conversion percentage.   Also, service and accessories coupons are often successful, but like gas cards, have to be for a significant amount to really draw traffic in.

There are some dealerships that, for one reason or another, are unable to use anything worth monetary value.  In this instance, wording is extremely important.  Make the customer feel that they will be getting a special price by shopping online by offering them “hassle-free pricing,” or depending on your state/OEM, a “special Internet price.”  Again, it’s necessary to check with the proper “higher-ups” to ensure you’re not breaking any rules here.

No matter what type of incentive you’re using, persuasive keywords will paint a nice picture in the head of your website visitor.  Break out the thesaurus and use those calls-to-action.  Invest in an advertising book specializing in sales words (leave a comment if you’d like me to recommend a few) to really clinch that conversion.  The words and phrases in these specialty books can help you distinguish yourself from other dealerships just by using the right language.

Because incentives have the ability to heavily impact your conversion rates, they need to be effective.  When something (OEM, state government) limits what you can use to draw customers in, it’s time to get creative.  Buyers want more than just money, so appeal to their desire for “things” to help them justify taking the next step in their buying process…whether that means submitting their information, taking a test drive, or buying their new vehicle.

Get Creative with Your Dealership’s Incentives

I’m sure it’s no surprise that high gas prices are causing most Americans to cut back in other areas of their life, especially in those things considered as luxury items.  Edmunds.com recently conducted a survey showing that 95% of Americans are changing their lifestyle due to the recent increase in gas prices.

Ever wonder exactly what types of things people are cutting back on?  A new study by WebRidesTV.com answers this question.  According to their survey, the top three categories in which people expect to cut back are:

• Travel (42.35%)
• Dining Out (40.98%)
• Consumer Electronics (26.57%)

Incorporate this information into your incentive campaign; use it as a way to reward customers and entice leads.  Use incentives that help satisfy your potential customers desire to fill the categories where they’ve admitted spending is down.

Get creative.  Go beyond the typical $50 gift card for local restaurant favorites.  While this is a great starting point, increase your offer for a raffle or for those that buy new vehicles.  Set up a “Night on the Town,” complete with dinner, movie, and the use of a limousine (or use a luxury vehicle from your dealership for added branding).  While the actual cost behind this is fairly low, the perceived value to your potential customers will be exponentially greater.

A lot of dealerships are offering gas cards as incentives.  How can you raise the perceived value besides simply increasing the denominational value?  Throw in a night’s stay at a hotel a few towns over, or maybe tickets to a sporting event, and you’ve just given your customers an instant vacation.  Again, the extra cost to your dealership is minuscule compared to the added perceived value you’re giving to your consumers.

For electronics, the iPod is a common giveaway item.  Why not offer to pre-load it with bands of your customer’s choice, or a collection of local bands?  Giving away a GPS?  Load their home and work addresses in it before they pick up the car.  These won’t cost your dealership much, or anything at all, but will set you miles above your competition.

Because many people are holding back on car purchases, give them an opportunity to fulfill another area that they’ve cut back on.  Your dealership spends minimal money compared to the perceived value to your customer, and everyone’s a winner.

Use Your Online Efforts to Help Convert

In Internet sales, the conversion from anonymous web visitor to known sales lead is the necessary first step when making a sale.  Your web visitors decide when they want to offer up their contact info and start communicating with your dealership, so in order to convert your web traffic into customers, they need to be able to interact with your site and make themselves known.  This needs to be the number one goal of your site, and everything should work towards that goal.

Using identifiable and trackable web tools like effective incentive campaigns, a virtual assistant and engaging multimedia will make it as easy as possible for them to submit their contact information.  Because these types of tools make it easier for web visitors to interact and connect with your dealership, DealerOn has found that when dealers use them, the number of visitors that convert into leads is increased, often doubled.
After you’ve been able to establish contact with your web visitors, it’s important to convert them from sales leads into sales.  Although you can’t force them into taking the next step on the road to sale if they aren’t ready, you can lead them through the sales process.
Just like web tools can help you convert visitors into leads, use lead nurturing to turn these leads into customers.  Sending surveys will allow you to find out where leads are in each sale, making sure your follow-up is appropriate for their buying status.  Use follow-up emails to keep in regular and timely contact with your sales leads.  This will allow you to further the communication that your website facilitated, moving you closer to making the sale and help to complete the conversion process.

Make sure that your lead nurturing efforts always include a strong call to action in each email, phone call, or voicemail to let your leads know the benefits of taking the next step, as well as how to do so when they’re ready.  It’s important to ensure your leads know how to convert into a sale when they want to.

Focusing your website around interacting and communicating with your website visitors will convert more of them into sales leads.  You can then use your lead nurturing to direct your leads through the sales process and convert them to customers.

How do you structure your website to help you convert these visitors to leads?  Lead us through what works for your dealership to get people through the conversion process and into your showroom.