Study Shows Dealer Lead Response Lags Consumer Expectations
For Immediate Release
6/2/2011
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Gabe Foo
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email: gfoo@digitalairstrike.com
Study Shows Dealer Lead Response Lags Consumer Expectations
Speed and Comprehensiveness of Information Fall Short
SUNNYVALE, Calif.–(BUSINESS WIRE)–A new study, The 2010 ResponseLogix Mystery Shopping Study, shows that significant shortfalls remain in the speed and comprehensiveness of dealer responses to internet leads, ResponseLogix CEO Tom Mohr announced today. “The surprising results of this study indicate dealers are still in the beginning stages of driving the necessary improvements to internet sales practices that ensure optimal sales results,” Mohr said.
The study, carried out in October, 2010, analyzed the responses of more than 1,300 dealerships across the United States. The study confirmed that the significant majority of internet replies fell well short of the minimum standard consumers expect, as indicated in past consumer studies carried out by CapGemini, J.D. Power and others.
Past studies show that conversion can double when a consumer receives a response within 20 minutes. Consumers want a price quote, not a generic non-quote response. They seek vehicle details in the quote, and want to see multiple vehicle alternatives. Yet the 2010 ResponseLogix Mystery Shopping Study reveals that less than 1% of responses gave the consumer a multi-vehicle price quote, with full pricing and incentive information, with vehicle details, arriving in 20 minutes or less. “The fact that so few lead responses meet the consumer’s expectation presents an enormous challenge and opportunity to the auto dealer community,” Mohr said. “The dealer that masters these best practices will gain a decisive advantage over his competitors.”
The study showed that 12% of leads received no response at all. 58% of responses did not include the price. 30% of the responses were price quotes. The median response time was 3 minutes, mostly driven by automatic “auto-responders” triggered by the dealership’s CRM system. For price quotes, however, the median response time was 1.1 hours. 70% of the price quote responses included just one vehicle. Only 2% of the price quotes included multiple vehicles, with vehicle details and incentive information included. The percentage of price quotes received in under 20 minutes that included this level of detail was below 1%.
“The arrival of a lead is the ‘Moment of Truth’. The consumer has put 3-4 dealers on trial. The dealer who can respond with a multi-vehicle price quote right away, showing full vehicle detail and accurate pricing and incentive information, will establish the customer’s trust and win the day. Dealers who bring together the tools and processes necessary to execute successfully on this key success factor will outperform the dealers who don’t,” Mohr added.
About ResponseLogix, Inc.
ResponseLogix started in a car dealership. By observing the internet car buying sales process from both the dealer and the customer side, ResponseLogix determined that effective Digital Response Management is the key to achieving both immediate initial response and effective ongoing follow-up. With this in mind, the company created its powerful patent-pending solution suite, tailored to the needs of the fast-paced, multi-tasking dealer internet selling environment.
ResponseLogix delivers software as a service (SaaS) technology to auto dealers that engages the customer early in the car buying process and then propels her toward purchase. SmartQuote® delivers a relevant quote response within 10 minutes of internet lead receipt 95% of the time. SmartFollow® automatically follows-up and reactivates leads if the customer doesn’t buy right away. SmartFacts® delivers powerful analytics to help optimize the performance of internet sales departments. Additional information is available at www.responselogix.com .
