Need Help with information for Meeting

[lfinney]

Ok, I am going to post a few questions that I know have been put on here before but I need help and have very little extra time. (I know no other ISM has extra time either.)

Here is my issue... I have been overseeing and managing the Internet sales, leads and websites for a multi-line import store for 5 years. (oh, I also managing all our CRM efforts) We have accquired a few stores along the way. Until now, my job really only had me "helping" one other Nissan store and a used lot.

Now, I have 2 brand new store a Buick/GMC and a CDJ store for a total of 5. All of the sudden it seems, all the sales managers and my ISM are asking more questions about the number of visitor to leads, where to speand money, what is working etc? I track this information and I know at my store. I am starting to track for the new stores.

However, most of the statistics that I have been viewing for years are quite surprising to them. So what I am looking for are some slides or just general replies on a few main points so that I can make them understand - they must be patient and work the plan! Buying leads and sometime this source is not is issue.

- Website Converstion Rate for a main dealership sites - on average what are you guys seeing visitors to leads (are you contacting phone contacts)

- Time on Site and Page Views

- What about Cars or Autotrader? Does anyone track views to leads or have a good way other the sold units on these type sources. I do a cost per impression type report already.

- Closing Ratio... I know this one can be all over the board depending on your dealership you process etc.

I am going to try and make a brief presention on Monday to the sales manager for 5 stores so send me what you can.

I am SOOO glad that Internet sales and sources is now "on their radar" but I am finding it hard to explain. I can use the help but I want them to understand the reasoning.

Here is my example, I have installed a product on the ISM PC that shows in real-time the visits they are getting on craigslist. They are doing well but now they are calling me saying it is broken because they have visits and not enough leads.

THANKS EVERYONE FOR YOUR HELP...

 

[Alex Snyder]

Here are some standards:

- Website Converstion Rate for a main dealership sites - on average what are you guys seeing visitors to leads (are you contacting phone contacts)

Average is around 3% conversion rate (when you don't count map views as a conversion metric). However this fluctuates moreso on how well your dealership is known in the community.

- Time on Site and Page Views

TOS is roughly 3-4 minutes on average.

Pageviews vary based on type of car being looked at. All I can tell you is that a used shopper looks at a different number of pages than a new car shopper. And an Audi customer looks at a different number of pages than a Kia customer.

- What about Cars or Autotrader? Does anyone track views to leads or have a good way other the sold units on these type sources. I do a cost per impression type report already.

Both Autotrader and Cars.com do not send much traffic to a dealer website. Unfortunately you have to rely on their reports or stroke the "faith check" when paying a bill to them.

- Closing Ratio... I know this one can be all over the board depending on your dealership you process etc.

8 to 12% closing ratio. The fluctuation looks to be related to how well a dealership brands itself and how many third-party leads it is buying. The missing piece is how many phone calls are being made by website visitors.

 

[joe.pistell]

...TOS is roughly 3-4 minutes on average.

Pageviews vary based on type of car being looked at. All I can tell you is that a used shopper looks at a different number of pages than a new car shopper. And an Audi customer looks at a different number of pages than a Kia customer.

I totally agree with what Alex says and add that SIZE MATTERS... inventory size that is... From my findings, TOS (Time On Site) and Number of Units on Site are directly correlated.

The more units you have on display, the longer they'll stay.
http://forum.dealerrefresh.com/f43/combined-inventory-cant-we-all-just-get-along-942.html#post7835

 

[Jeff Kershner]

Yup - I too can re-enforce what Alex has already said here.

The Average conversion on a dealership website across the board is typically between 2-3% (not including phone calls). There is HUGE opportunity here. An increase of only 1-2% = double your lead count. Dealer websites usually yield highest closing ratio (customer has made a conscience decision to allow you the opportunity to earn their business), so there is a huge benefit to drilling in on your conversion rate. Your Vehicle Details Page is the bread and butter - but there are other areas of conversion opportunity.

As Alex points out, your overall conversion ration depends on your lead mix and quality of leads. Every dealer I have been in and out of that buys a huge flux of 3rd Party Manufacturer leads, typically have a lower overall closing ration .

I really like to see a 5 min minimum time on site (block your dealers IP from your analytics) BUT when looking at this measurement, you need to consider your page views per visitor session AND referral entry point to conversion.

I encourage all to track phone calls from your dealerships website while building out custom reports so you can see with and without the phone call conversion (also spit between a sales and service call)

AutoTrader and Cars.com - I like to use their reports to track the performance and trends. I know not all will agree with this but I'm more a trend tracker. Numbers are numbers - trends tell the story. I use AutoTraders Monthly Scorecard Reports and Cars.com monthly Dealership Summary Report along with my own reports to determine value and performance.

 

[ed.brooks]

Hi lfinney,

Since you posted your question on a number of sites, I don't mine cross-posting my answer here as well

The study AutoTrader.com presented in January of 2009 might be a big help. Although ATC participated in and presented the study it's not about AutoTrader.com specifically - it is about how internet advertising affects car shoppers. It was conducted in conjunction with Northwood University and looked at what types of advertising were responsible for walk-in traffic at dealerships. These are people that don't email and don't call. People that just walk in off the street.

The upshot is that of all the folks who walk in, specifically because of dealership advertising, 54% walk in because of an ad they saw online. This could be ATC, Cars.com or your dealership website, as examples. Online advertising accounts for more than every other advertising source combined. It's also worth noting that only 2% of walk-ins sent an email before they came to the dealership. I think you're trying to demonstrate that your online advertising is much more valuable than just the cars sold by the emails generated. I hope this helps drive home the point.

I'm not sure if you'll have time to get the manager to attend Dale Pollak's webinar on Monday, but it might also be a big help. Dale is the Founder and Chairman of vAuto. He's my boss and I'm most assuredly biased, but he is a great speaker. I was a fan of Dale's before I ever came to work at vAuto. On Monday he won't be selling vAuto at all. He'll be working to get dealers engaged.

His webinar Monday is targeted at getting Owners, GMs and Used Car Managers involved in their online advertising. He'll talk about VDPs and SRPs (first he'll need to explain them, since few dealers have any idea what they are). He'll touch on conversion rates and delve into the factors that lead to success online. Most importantly, he'll inspire many of them to take a much more active role in their advertising. Dale's position is that if you have any responsibility for pre-owned sales, you can't completely abdicate that responsibility to the internet department. The used car business today, quite simply IS the internet business.

Here's a link to the ATC/Northwood Study.

And here's a link with more information on the Dale Pollak Webinar.

Please don't hesitate to contact me if I can be of any help. I wish you all the best!