GM Internet Lead Response Time - OFFICIAL thread
- Thread starter Alex Snyder
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Ref. number:Sales / SFE / G_0000059623Subject:Chevrolet Notification on Q3 SFE Digital Bonus
Ref. number:Sales / SFE / G_0000059623Subject:Chevrolet Notification on Q3 SFE Digital Bonus
Here it is
June 30, 2010
TO: CHEVROLET DEALER PRINCIPAL/GENERAL MANAGER/SALES MANAGER
SUBJECT: SFE DIGITAL BONUS
I am writing to inform you of a change for Standards For Excellence (SFE) beginning in the third quarter. As you know, Chevrolet dealers have made great strides in response times during the last few months. In fact, in May, Chevrolet dealers responded to 98% of all leads with an average initial response time around two hours. This is simply outstanding, and it represents over a seven hour improvement in average response time since last September.
However, as we discussed in the recently completed five regional meetings, there is a tremendous opportunity to improve the quality of the lead responses. Frankly, the lead response quality for the majority of leads we mystery shopped just prior to our regional meetings is simply not acceptable. Improving lead response quality will no doubt drive higher close rates, which is of course the ultimate goal for our mutual business.
With this as background, now that we have created awareness of the importance of lead response, GM will discontinue the SFE Digital Bonus for Chevrolet, Cadillac, and Buick-GMC for the third and fourth quarters of 2010. At Chevrolet we now embark on an exciting period. With availability improving, we will be increasing our advertising spend dramatically as we launch the Silverado HD and exciting all new Cruze.
Although the bonus will not be in play for the balance of the year, I know our dealers will remain vigilant on lead response – both online and offline. I challenge every dealer to ensure that they are meeting and exceeding the current national Chevrolet averages for lead response, which is 98%, and an average initial response time of two hours or less. In addition, Chevrolet dealers currently have a close rate of approximately 5% of all internet leads submitted, and the best dealers are exceeding 9% close rates. If your close rates are not already at the elite 9% level, please take this opportunity to thoroughly assess your processes for lead handling and drive for improvement. If you do the math on the incremental profit each additional point of close rate would drive to your bottom line, I am sure you’ll agree this is a worthy priority. Our field teams and SFE facilitators stand ready to assist in this critical area for our mutual business.
If you need further assistance or access to additional resources, please contact your Zone Manager.
Sincerely,
Alan Batey
Vice President, Chevrolet Sales and Service
Chevrolet Division
General Motors Corporation
100 Renaissance Center
Detroit, MI 48265-1000
June 30, 2010
TO: CHEVROLET DEALER PRINCIPAL/GENERAL MANAGER/SALES MANAGER
SUBJECT: SFE DIGITAL BONUS
I am writing to inform you of a change for Standards For Excellence (SFE) beginning in the third quarter. As you know, Chevrolet dealers have made great strides in response times during the last few months. In fact, in May, Chevrolet dealers responded to 98% of all leads with an average initial response time around two hours. This is simply outstanding, and it represents over a seven hour improvement in average response time since last September.
However, as we discussed in the recently completed five regional meetings, there is a tremendous opportunity to improve the quality of the lead responses. Frankly, the lead response quality for the majority of leads we mystery shopped just prior to our regional meetings is simply not acceptable. Improving lead response quality will no doubt drive higher close rates, which is of course the ultimate goal for our mutual business.
With this as background, now that we have created awareness of the importance of lead response, GM will discontinue the SFE Digital Bonus for Chevrolet, Cadillac, and Buick-GMC for the third and fourth quarters of 2010. At Chevrolet we now embark on an exciting period. With availability improving, we will be increasing our advertising spend dramatically as we launch the Silverado HD and exciting all new Cruze.
Although the bonus will not be in play for the balance of the year, I know our dealers will remain vigilant on lead response – both online and offline. I challenge every dealer to ensure that they are meeting and exceeding the current national Chevrolet averages for lead response, which is 98%, and an average initial response time of two hours or less. In addition, Chevrolet dealers currently have a close rate of approximately 5% of all internet leads submitted, and the best dealers are exceeding 9% close rates. If your close rates are not already at the elite 9% level, please take this opportunity to thoroughly assess your processes for lead handling and drive for improvement. If you do the math on the incremental profit each additional point of close rate would drive to your bottom line, I am sure you’ll agree this is a worthy priority. Our field teams and SFE facilitators stand ready to assist in this critical area for our mutual business.
If you need further assistance or access to additional resources, please contact your Zone Manager.
Sincerely,
Alan Batey
Vice President, Chevrolet Sales and Service
Chevrolet Division
General Motors Corporation
100 Renaissance Center
Detroit, MI 48265-1000
We are using Professional Answering Service as another member said they were using it as well, however we dont see 4 second times, we see lead times about anywhere from 2mins to 10mins. Our reports show we are at 98.8% and 12mins. I highly reccomend them - Angelo Celesia 757-874-0700 [email protected] www.liveanswer.cc
We are going to continue with the service for now and watch what GM does. I have heard and read that since the dealers jumped on board with response rate and blew that out of the water, that GM now may look at conversion ratio's. While a quick response is very valuable and should not be forgotten just becasue there is no more incentive, I think if GM does go ahead with a closing ratio strategy it would be good, but with lots of issues and headaches and many their own! The writing is on the wall, they addressed closing ratio's in 5% and 9% range and said "If your close rates are not already at the elite 9% level, please take this opportunity to thoroughly assess your processes for lead handling and drive for improvement. If you do the math on the incremental profit each additional point of close rate would drive to your bottom line, I am sure you’ll agree this is a worthy priority." --- Get ready!
GM addresses "lead response quality" in their statement above, what needs more addressing is lead quality to the dealer! We average over 160 (more than some of our biggest competitors) leads a month from GM, stock 80-100 units with all 4 GM lines and have a failry good size area of responsibility with Cadillac. We averaged 2.75% closing ratio on 178 leads in May, that is about our average and we just can't seem to move it. The overall majority of the leads are very poor quality, and I am not alone i am sure in that statement. We get leads for $80K Escalades with bogus phone numbers and info, what happened to the "scrubbed" lead? Heck we get leads now with NO phone numbers, and today with spam blocks on email we dont get through to half the aol, yahoo, and g-mail accounts! My worry is if GM puts into place a requirement or bonuses for closing ratio we will not be avble to meet that because GM's lead quality is poor and our amount of incoming leads we get will never allow us to get to their levels because of having all 4 franchises.
My statement to Alan Batey would be that if you are so concerned that the lead response quality is not acceptable then help those dealers become better with a good program like some other OEM's put into place years ago for across the board measures in all their dealerships. And if quality is your hot button then GM has a lot of work to do itself, many dealers would say to you that GM's lead quality is less than acceptable!
We are going to continue with the service for now and watch what GM does. I have heard and read that since the dealers jumped on board with response rate and blew that out of the water, that GM now may look at conversion ratio's. While a quick response is very valuable and should not be forgotten just becasue there is no more incentive, I think if GM does go ahead with a closing ratio strategy it would be good, but with lots of issues and headaches and many their own! The writing is on the wall, they addressed closing ratio's in 5% and 9% range and said "If your close rates are not already at the elite 9% level, please take this opportunity to thoroughly assess your processes for lead handling and drive for improvement. If you do the math on the incremental profit each additional point of close rate would drive to your bottom line, I am sure you’ll agree this is a worthy priority." --- Get ready!
GM addresses "lead response quality" in their statement above, what needs more addressing is lead quality to the dealer! We average over 160 (more than some of our biggest competitors) leads a month from GM, stock 80-100 units with all 4 GM lines and have a failry good size area of responsibility with Cadillac. We averaged 2.75% closing ratio on 178 leads in May, that is about our average and we just can't seem to move it. The overall majority of the leads are very poor quality, and I am not alone i am sure in that statement. We get leads for $80K Escalades with bogus phone numbers and info, what happened to the "scrubbed" lead? Heck we get leads now with NO phone numbers, and today with spam blocks on email we dont get through to half the aol, yahoo, and g-mail accounts! My worry is if GM puts into place a requirement or bonuses for closing ratio we will not be avble to meet that because GM's lead quality is poor and our amount of incoming leads we get will never allow us to get to their levels because of having all 4 franchises.
My statement to Alan Batey would be that if you are so concerned that the lead response quality is not acceptable then help those dealers become better with a good program like some other OEM's put into place years ago for across the board measures in all their dealerships. And if quality is your hot button then GM has a lot of work to do itself, many dealers would say to you that GM's lead quality is less than acceptable!
- Apr 16, 2009
- 99
- 3
- First Name
- Mike
Very interesting post Eley, my favorite example from the "verified, accurate and well scrubbed, leads" from the GM 3rd party lead program are Canadian residents whom GM prohibits us from selling new rig's too.
- Apr 15, 2009
- 14
- 1
- First Name
- Les Stanford
Guys- a speedy response is a good business practice and it will produce more sales! The 10k from GM was the icing on the cake of good behavior. I have been on Overnightbdc since Before the digital rewards exsisted and I did it to be a better business. Now I have enjoyed their 20k but the reality is- overnight/after hours customers are buyers and if you snooze- you lose. I can't hire a BDR to do 24/7 coverage for minimum wage and pay less than $249
speeedy response will always win
Scott
speeedy response will always win
Scott
- Apr 16, 2009
- 99
- 3
- First Name
- Mike
Yes Scott, A well crafted, direct response with exact answers to the questions by the UP will always be well received and most assuredly better one's chances on earning the business, my point is why does GM send me, and charge me for a 3rd party lead they refuse to let me sell new to?
- Apr 15, 2009
- 14
- 1
- First Name
- Les Stanford
We're close to canada too- we sell a shit load of used cars across the way. With the dollar even it's a buyers market for canucks- I'd look back at the leads and see what leads I got and stock up in the late model preowned to match the leads. GM 3rd party are pretty cheap in comparison to other lead sources
- Apr 16, 2009
- 99
- 3
- First Name
- Mike
Thanks for your nicely stated reply Scott, however, my whole, sole and only point was/is how can GM promote their lovely 3rd party lead program as scrubbed fresh as a daisy and ready for us to sell, when in fact the the vehicle requested by the lead is one that GM will cancel our franchise agreement should we sell it to that lead who comes from Canada? Ironic, isn't it?
Ok, this prompts me to want to have a discussion about what everyone thinks about the quality of GM Internet Leads. So not to get off course here, I will post a new thread so we can focus on that and leave this to response times.
