I do not know what to say to this. You are taking someones conjecture and expecting me to do a ton of research to overcome his comment. As far as we know there has not been any influx of "bad leads". Of course, just like any other lead provider, like the "ePrice" on DDC, there are people who put in bad information. We all know this. It happens on AT, and Cars too. I am sorry that I do not have the "exact number".
What do you think of this?
- Thread starter Jerry Thibeau
- Start date
I do not know what to say to this. You are taking someones conjecture and expecting me to do a ton of research to overcome his comment. As far as we know there has not been any influx of "bad leads". Of course, just like any other lead provider, like the "ePrice" on DDC, there are people who put in bad information. We all know this. It happens on AT, and Cars too. I am sorry that I do not have the "exact number".
I don't think an exact number is needed, but it might not be a bad idea to gather feedback from clients who have this so you know.
Dealers may be used to getting bad leads from all the other sources and many of them, in my experience, don't even mention their issues with this any more. I would honestly be quite curious about the quality of these leads though.
You must be getting some feedback from your clients, because you wrote this:
If you track those stats, you should also be tracking the quality of these leads that "more than doubled".
I'm not trying to go on the offense here, but I'm a data nut and I make decisions based on quantity and quality, not just quantity.
Dealers may be used to getting bad leads from all the other sources and many of them, in my experience, don't even mention their issues with this any more. I would honestly be quite curious about the quality of these leads though.
You must be getting some feedback from your clients, because you wrote this:
If you track those stats, you should also be tracking the quality of these leads that "more than doubled".
I'm not trying to go on the offense here, but I'm a data nut and I make decisions based on quantity and quality, not just quantity.
- Apr 28, 2009
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- Jerry
At the end of the day it's about generating new leads and selling vehicles. If this product does that, then I would say it's worth a try. I had a chat with Tony on the phone and I like the information he provided. Just make sure your people are trained to make effective outbound calls if you expect to maximize this tool. This product may not be for all, but it may be worth a try. Do your DD before committing. Talk to other dealers using the tool.
That's my 2 cents.
That's my 2 cents.
I have sent several emails out to our client base and asked, "What percent of the leads you are getting from the Instant Pricer are bad leads?".
Not sure how many dealers will respond, but I am trying to answer your questions.
Not sure how many dealers will respond, but I am trying to answer your questions.
- Apr 7, 2009
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Tony,
It's all about yield. A study could produce results that look like:
"from a 3 store study, it produced 100 leads per month, 15 appointments were created, 7 were sold".
You've got a 7% closing ratio.
You could continue:
"Our best practices noticed that these shoppers were very close to purchase, 73% were closed in only xx days from form submission. The tool does not require valid contact info, we suspect a fair share will be false contacts, so have your team email a response only 3 times before marking them inactive."
It's all about yield. A study could produce results that look like:
"from a 3 store study, it produced 100 leads per month, 15 appointments were created, 7 were sold".
You've got a 7% closing ratio.
You could continue:
"Our best practices noticed that these shoppers were very close to purchase, 73% were closed in only xx days from form submission. The tool does not require valid contact info, we suspect a fair share will be false contacts, so have your team email a response only 3 times before marking them inactive."
In an effort to respond to questions as fast as possible, I am going to share data as I get it in. Below is a look at three dealers who responded to my question, "How many leads, appointments, and sold units we derived from the Instant Pricer in June, 2013?".
This is only a one-month view, but as time goes on we can grow this lead analytic report. By combining three dealers we are looking at different sales abilities. While one of these dealers had a closing ratio close to 10%, another had an almost 19% closing ratio. I think this is a fair comparison by using dealers with different follow-up and phone sales abilities.
Why One Dealer Has A 19% Closing Ratio?
What we know regarding the dealer who has close to a 19% closing ratio is that they are calling the consumer more rapidly, and they are responding to the consumer with additional information regarding the vehicle inquiry. Additionally, since the consumer already has the price, the dealer sends the consumer payment and lease options along with available incentives and dealer advantages (why buys).
Here is the first response email with the dealer name and links left out:
Dear xxx,
My name is xxx, Internet Director at Toyota of xxx. I want to be sure you have all the information you need in regards to the 2013 Toyota Camry LE you inquired about.
You already saw our low XXX Price of $20,995 (MSRP $24,115), stock #xxx on our website with our Instant Price Program. Below is additional information I gathered for you on the 2013 Camry LE.
• Currently, Toyota is offering $1,000 cash back, or 0% APR for up to 60 months and $750 Toyota finance Cash on the 2013 Toyota Camry.
• There is a Toyota Lease Offer on the 2013 Toyota Camry LE for $199 per month. Click here to view our lease Offers.
• If you are currently enrolled in college or if you are a recent college grad, a first-time buyer, active or recently retired military, or if you are trading in your old vehicle, there may be additional offers available to you. Please call me to find out what you qualify for.
• Additionally, with the purchase of a new Toyota at XXX you get lifetime oil and filter changes, engine guarantee, installed parts, free car wash after service, and Virginia state inspections with our XXX Rewards Program!
By the way, you may be interested in this like-new 2011 Toyota Certified Used Camry LE for only $18,999 with less than 22,000 miles. Click here to view this vehicle.
Please call me at XXX, or if you come to the dealership, please ask for me, XXX.
Kind Regards,
Bad Leads
As far as the question, "How many, or what percent of the leads are bad leads?", the responses from these dealers came back with nearly the same answer (paraphrased): "No more than any other provider." What does that mean? I do not know; this is unknown.
Eventually we will get into dealer CRMs and look at things like bad leads, or buying time, etc. For now the answer for the number of bad leads is vague. I am sorry. In time we will provide those answers and other specific statistical information as we are actively seeking access to CRMs to look at these things.
Hopefully, this response is adequate for those who are asking.
This is only a one-month view, but as time goes on we can grow this lead analytic report. By combining three dealers we are looking at different sales abilities. While one of these dealers had a closing ratio close to 10%, another had an almost 19% closing ratio. I think this is a fair comparison by using dealers with different follow-up and phone sales abilities.
Why One Dealer Has A 19% Closing Ratio?
What we know regarding the dealer who has close to a 19% closing ratio is that they are calling the consumer more rapidly, and they are responding to the consumer with additional information regarding the vehicle inquiry. Additionally, since the consumer already has the price, the dealer sends the consumer payment and lease options along with available incentives and dealer advantages (why buys).
Here is the first response email with the dealer name and links left out:
Dear xxx,
My name is xxx, Internet Director at Toyota of xxx. I want to be sure you have all the information you need in regards to the 2013 Toyota Camry LE you inquired about.
You already saw our low XXX Price of $20,995 (MSRP $24,115), stock #xxx on our website with our Instant Price Program. Below is additional information I gathered for you on the 2013 Camry LE.
• Currently, Toyota is offering $1,000 cash back, or 0% APR for up to 60 months and $750 Toyota finance Cash on the 2013 Toyota Camry.
• There is a Toyota Lease Offer on the 2013 Toyota Camry LE for $199 per month. Click here to view our lease Offers.
• If you are currently enrolled in college or if you are a recent college grad, a first-time buyer, active or recently retired military, or if you are trading in your old vehicle, there may be additional offers available to you. Please call me to find out what you qualify for.
• Additionally, with the purchase of a new Toyota at XXX you get lifetime oil and filter changes, engine guarantee, installed parts, free car wash after service, and Virginia state inspections with our XXX Rewards Program!
By the way, you may be interested in this like-new 2011 Toyota Certified Used Camry LE for only $18,999 with less than 22,000 miles. Click here to view this vehicle.
Please call me at XXX, or if you come to the dealership, please ask for me, XXX.
Kind Regards,
Bad Leads
As far as the question, "How many, or what percent of the leads are bad leads?", the responses from these dealers came back with nearly the same answer (paraphrased): "No more than any other provider." What does that mean? I do not know; this is unknown.
Eventually we will get into dealer CRMs and look at things like bad leads, or buying time, etc. For now the answer for the number of bad leads is vague. I am sorry. In time we will provide those answers and other specific statistical information as we are actively seeking access to CRMs to look at these things.
Hopefully, this response is adequate for those who are asking.
Tony,
Good numbers, I love stats to back up arguments. I do have one request, if possible. Can you get and compare month over month internet leads from those same dealerships (Q3) and maybe June 2012 to compare? Although the Instant Pricer provided good numbers, I'm wondering how many of those leads/appointments/solds would have came in through previously existing forms.
Good numbers, I love stats to back up arguments. I do have one request, if possible. Can you get and compare month over month internet leads from those same dealerships (Q3) and maybe June 2012 to compare? Although the Instant Pricer provided good numbers, I'm wondering how many of those leads/appointments/solds would have came in through previously existing forms.
Chad,
Good questions. I will get back on this question as I indicated before as I need to gain access to CRM systems. BUT, I am sure there are leads that were additionally submitted from other forms either prior to or after submitting an IP lead; like Credit app, Trade-in, etc. This would not be uncommon.
In theory, if you had a mobile site would you want this to work on that mobile site?
The reason I ask is just curiosity - would you want your customers to be able to use this tool while on the lot?
The reason I ask is just curiosity - would you want your customers to be able to use this tool while on the lot?
