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What percentage of your business comes from the internet?

Discussion in 'CRM, ILM, Chat, Desking, Emails, Phone, SMS' started by ddavis, Nov 19, 2013.

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  1. ddavis

    ddavis
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    Sr. Refresher

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    At my previous stores, we only counted an internet deal, if it was a confirmed appointment or if the customer asked for an ISM by name. Our ISMs worked cradle to grave and I was fortunate to have a dozen very talented ISMs.

    A vendor, on another forum, said that dealerships should obtain 30% of their business from the internet. He stated that any more than this would be the internet department converting floor ups to the internet.

    This particular site is predominately vendors and they are eager to defend one another. DealerRefresh is mostly dealership personnel and I am convinced represent the brightest of the dealer community.

    My previous stores did better that twice the 30% and I am sure that we were not alone.

    I would like to see some of the percentages from this community.
     
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  3. ryan.leslie

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    I'm just a vendor, but every stat I've seen in the last 5 yrs said that the overwhelming statistical majority of customers do preliminary research online before engaging with the dealership in any meaningful way. JD Powers has shown a steadily declining number of dealership visits pre-purchase over that time, the number now is 1.8 visits. I'd guess it is far more likely that the floor mops up 90% of the traffic that is driven by internet marketing efforts that don't drive the employee as a meaningful part of the value proposition.

    I'm not familiar with the post you are referencing, but does that vendor rep non-digital advertising, perhaps?

    On a side note, a "longing for the way that things used to be" can lead to some really poor decision making. I present you this as proof:
    #TBT: These People Recreated Their Childhood Photos And The Results Are Epic | Elite Daily
     
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  4. Alex Snyder

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    There isn't a standard way to measure "what is an Internet deal" from one dealership to another. It can even vary within groups. Since I joined Dealer.com, in 2010, I have heard claims as high as 87% should be sourced online to as little as a "7% closing ratio is okay" from different sources. Many dealer's understanding of things and these claims/statements are so out of whack it drives me nuts and always requires a chalk board and 30 minutes to unwind the kind of BS that has been programmed over the years </end rant>

    In my Checkered Flag days of Internet sales (2001-2010) we had different percentages based upon the brand of vehicle. The more expensive the car the more business came from a form submission or a phone call where someone said "I saw this car on ____ website." When you got into the Porsche 911 territory it was almost 100% of the time with the exception of our repeat customers. In the Hyundai Accent range it was much harder to figure out where the phone and walk-in traffic was coming from.

    Checkered Flag used to pay the centralized BDC on activities. BDC agents were credited under these criteria:

    • 1 confirmed appointment that bought
    • 2 email replies from the customer
    • 1 recorded phone call

    The BDC only received *fresh Internet leads and Phone ups.

    These were later translated into "Internet deals" and that attributed to over 30% of the total monthly sales year over year. The tracking and auditing for this was intense and Checkered Flag has since scrapped it for a less-audited system that would be for them to choose to share if they like.


    *any customers who were already in the CRM, and submitted another Internet lead, went right back to the assigned sales agent.
     
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  5. Dave Karasick

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    I am a newbie here-

    As we try to reach out to customers in different ways it becomes harder and harder to track. I just started at a store in NC after being at a dealership for 15 years in Tidewater Va. We are running an "Owner Assistance Team" that works mainly in developing leads out of service. What I have been seeing as of recent is that after contact with the OAT- they are typically telling us that they are not interested - then with in a week about 15% are going online to submit leads. Maybe it's just a coincidence or maybe we sparked an interest and I am blessed that they choose our website to shop.
     
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  6. Alex Snyder

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    Kershner and I were chatting about this earlier. We have a new label for unsourced Floor/Phone traffic that really came from the Internet: EFP.













    EveryFuckingPerson :)




    *meant to be a joke for you serious folks.
     
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  7. richchew

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    I think really to answer this question, you would want to know what the end goal that was trying to be tracked.
    If it is to find out how your internet presence of the dealership is performing and how much influence it is having on your traffic and clients than you really have to figure that 80-90% of your business are "internet customers" across the board sales, service and parts. I believe the majority, if not all of the people that send in a lead, call, or drive in have been touched one way or another by the internet, even a lot of your previous customers. Whether it is visiting your website, googling the dealership for a phone number, checking online reviews on dealerrater, social media, 3rd party websites, banner ads on auto research sites, etc. As to the point of "internet department converting floor ups to internet" the reality is the exact opposite, and any Manger dealers (or Vendors) that believes there is floor ups that are on your showroom floor that didnt do some research online before arriving at a dealership is naive of todays day and age.

    But if you are talking that you consider an internet customer based off someone that physically put in a lead and eventually purchased a car from you. This tends to be a bit easier to track since their is a physical trail, and therefore a much lower number on percentage but more tangible on performance for transactions. Our dealership, for example, averages tracked internet leads sourced sales between 12-15% of fresh internet leads received each month which equates to about 30-35% of the stores overall sales.
     
  8. I autoknow

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    100 % ....for real !!

    We have built a true virtual Dealership. From the street you would not know we are a car lot. We do not accept "walk in's" We are by appointment only. Does it work ?.......about 250 times per month. Being a virtual Dealership allows us to focus on "A" prospects only. We have found the "B-C" prospect is still "thinking about" and in fact is not our best costumer. Our low sales guy is doing 30 units. Our lead dog is doing 50-60 per month. We decide to focus exclusively on the shopper who has decide to buy. They are no long in shop mode but buy mode. I know some will not believe the 100 % but it is a fact.
     
  9. ddavis

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    Ryan, I have seen that statistic as low as 1.4%.

    When I started selling cars dealerships controlled all of the information. Customers had to shop to see what was out there and get an idea of vehicle pricing. Today, they can get all the information online ...and they do. They make their buying decision before leaving their homes or offices. These are no longer "shoppers" but "buyers".
    That statistic tells you that the majority of customers purchase from the first dealership that they visit. Their mind is already made up. That being said, how important is your internet presence? How about the quality of the salespeople? Are they able to shut people down?
    Back in the day, NADA told us that we should close 20% of the "shoppers" that visited out store. Dealerships still use this statistic to evaluate their performance. Considering the 1.8% statistic, think we might raise our sights?
    Dealerships fall in to three groups: market leaders, average dealerships and subpar dealerships. Market leaders are by far the minority. I assure you that this group knows how to market their vehicles online and close the deal when the customer comes in.
    Alex, you know that I have never been a fan of the BDC. I still think that there is no substitute for quality salespeople. It is a fact, however; that I have not been in a dealership for three years and this whole thing might be passing me by. I have seen a trend where dealerships, especially in the groups, where they are not looking for superstar salespeople. They would prefer average people that are easy to control and demand less in compensation.
    Alex, working for Dealer.com, you have to get frustrated. You produce a quality product but the dealers don't do their part to merchandise their products and they blame you for poor results. The same is true for AutoTrader and Cars.com.
     
  10. joe.pistell

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    "...I wonder sometimes where we lost our way in the car biz....People buy things from people they like.....from people who care about them. As we end 2013 we are more challenged then ever to connect human to human."
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