Stop Jumping Over the Dollars to Get to the Pennies
With an average cost of $2,500 per person, internet sales training seminars can seem expensive. The average profit from a car deal, however, is also $2,500, so all you have to sell is one car to pay for a lifetime of car deals and a bright future! Dealers are often scared off by the price; they’re afraid they’ll pay for the training only to watch their salespeople leave for another dealership. Instead, they spend that money on advertising and marketing, but if this is such an effective strategy, why do dealers have a 90% lost opportunity rate? They’re jumping over the dollars that should be made through spending the money on training your staff to communicate with your customers and chasing the pennies (the money you are making from the 10%) by spending the budget on advertising and not training your staff to be able to effectively capture the fresh business (18% close) and maintain the sales staff’s current customer base (repeat and referral—60% close). To top that off most dealerships don't have a clue what their return on investment is.
Here’s a real example: dealership A, has me set up a $5,000 budget through Google adwords. To see how this dealership handled its leads, I submitted a personal lead through their website on a Tuesday. After submitting the lead, I spoke with the owner multiple times throughout the week to discuss business. While we talked, I mentioned I had submitted a lead to his dealership on Tuesday; on Thursday he fumbled through his inbox trying to find the lead. After a few minutes of searching he tells me, in an unbelieving tone, "I don't see you submitted a lead."
Saturday morning, rolls around and I am sitting at my computer and I receive a phone call from, who do you think, the principle at dealership A. The conversation starts off like this:
Dealer principle, "is Reid Richards there?"
Reid, "Yes this is him."
Dealer principle, "This is GM/Owner of dealership A and I was calling in regards to the lead you submitted."
Reid, "GM/Owner this is Reid Richards!"
Dealer principle, dumbfounded, "Oh, I guess I found your lead!"
Unfortunately, this is the norm at far too many dealerships, hence the 90% lost opportunity rate. These dealers want to spend money accumulating leads, but have no process with which to respond. The national average response time is 5.4 hours and that is for the first contact. As you can see the return call here was more like 96 hours and by the owner, "WOW"!
Customers and leads are easy to come by. I can load a dealership up with customers looking to buy a car, but if they can't respond or don't know how to, then why do dealers spend all that money on advertising for a customer that won’t be called back for 5.4 hours, or not at all, causing a 90% loss opportunity?
Reid Richards has been a sales manager, internet director, internet sales manager, and has spent the last five years building successful internet departments for dealerships across the country. He is currently the operator for Marketing Consulting, LLC. For more information call 888-309-8044, visit www.increaseyourleadsnow.com, or email firstname.lastname@example.org.
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