Managed Chat Performance Metrics?

[John Wingle]

Could use some feedback. We've been collecting managed chat data from some of our dealer clients and we're sort of questioning why dealers are using managed chat and not doing it themselves. Seems they'd likely get far better results if they were to take that on internally. From what we're seeing, it looks like less than 1% of chats (via website, FB, Google, etc) actually result in a sale. Are we missing something? We're seeing the following (despite what some of these providers are claiming):

Of total chats -
51% turn into "leads" for the dealer (a name -AND- a phone -OR- email is provided)
52% of those are labeled "good leads" (assuming the rest are duds for whatever reason)
30% of the remaining "good leads" set appointments (although this seems high given the next number)
32% of appointments set actually show up (I've read dealer set appointments have 60%+ show rate)
11% of appointments set - not just shown - result in a sale (I've read dealer set appointments close at 50%+)

With those calculations, 100 chats -> 51 "leads" -> 26.5 "good leads" -> 8 appointments -> 2.5 appointments shown = .9 sales
That's an average of slightly less than 1 sale for every 100 shoppers that initiated contact with the dealership via chat. Are our calculations accurate, understanding some dealers see slightly better results and some less?

Your thoughts and feedback would be appreciated.

Thanks!

 

[Alex Snyder]

I have a theory on this part that doesn't just relate to chat:

From what we're seeing, it looks like less than 1% of chats (via website, FB, Google, etc) actually result in a sale.

A car dealer is a facilitator of what this car will cost to purchase or fix. The customer is NEARLY ALWAYS reaching out to get to a number. When the number is avoided the customer loses interest in continuing to converse with that dealer.

@jon.berna has been closely tracking lead closing rates on millions of leads for the last 4 years. He is watching a steady decline in dealers' lead closing ratios across the nation across all brands. I have been watching the actual responses being sent to customers and seldom are dealers answering the price or payment question. When they do, their engagement rate skyrockets! And all other metrics follow.

When you fix the core of the conversation everything else is repaired too.

 

[John Wingle]

Great point, Alex. Thanks for the reply. I recently read a great blog post that really hit on what you're talking about. It was on another dealer forum site so not sure posting a link here would be appropriate but it was called "87 Car Dealers That Suck At Lead Conversions & How You Can Crush Them!" by James DeLucu.

I do think the whole pricing thing is a HUGE part of it but I think there's something bigger at play here. It's dealerships requiring the shopper give them something first (eg their name and phone number or email) - before really even entertaining giving the customer what they've already asked for (eg a price). To me, this is a cart before the horse scenario that is clearly costing dealers much more than leads. I get why they need it and ask for it but, in my opinion, it's a terrible first impression on a potential customer not to mention frustrating. Many shoppers use things like chat and messenger specifically because they don't want to have to provide that information right out of the box.