With Calls Now at 7 to 1 over E-Leads, Have We Created a Profit Leak?

Stop the Profit Leak
ANSWER THE PHONE!!

With the next Digital Dealer Conference promising to be chock full of the latest in Digital and Social Marketing strategies, I can’t help but ponder the obvious. We are learning great new ways to drive traffic to our dealerships with the commitment that the buying experience will be extraordinary. And the good news is its working! For too many of us, the bad news is the same…..its working.

With the application of the best in market strategies we are now driving phone traffic in a 7 to 1 ratio over internet leads. Why can that be bad news?

Consider this:

After measuring millions of calls, on the average, nearly 1 in 4, yes almost 25% of our sales calls result in the caller not connecting with a sales consultant! On hold hang ups, and blind transfers to Voice Mail have become by far the biggest profit leak for many dealers.

The newest technologies are creating a bottle neck in the oldest technology in the dealership. In the struggle to control costs many dealers have created complicated Phone Trees and short staffed the reception process and the call handlers in our profit centers.

Of course, we need to stay focused on what happens when the call connects....train for the most effective appointment set processes and create a great experience, as promised in our marketing. But first we need to consider our "Callers Journey". Nearly 100% of our customers will start with us on the phone, and 100% will interact with us on the phone after becoming a customer. This journey will drive our retention and define our "personality".

The expense of creating a great experience with 100% human contact at reception and the profit centers will have lasting R.O.I., and separate us from our competition.

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Comment by Mark Odat on March 3, 2012 at 11:20am: It is up to the management of any company to monitor and train, the monitoring of phone call responses and the daily training is the key to success, managers and sales people reviewing the calls one on one, and fixing the problem immediately by implementing the procedure in place is a must in order to maximize the sales potential.

Comment by Mr. Natural on September 24, 2011 at 3:42pm: I remember when I started in the business back in the 70's. The receptionist didn't do any screening, or calling for a salesperson to pick up in some code...It was: "Sales, Line one please, sales, line one." There was always two or three of us who would risk injury dashing to the phone to answer the up! Back then, these were good ups, worth the risk of making a mad dash.

Today, things are different:

"New Chevrolet Sales, line four please..New Chevy, line four!" If the customer is lucky, 45 seconds later, someone will waddle across the showroom, fumble with the phone for a few seconds, and answer: "This is Jason-How can I help?"........."I'm sorry sir, that unit is sold."........"Well, if you should come in, be sure to ask for me-Jason."..."Thanks, Bye!"

Is this really happening? Don't kid yourself...The answer is: In Spades!

Phone pops are fantastic prospects. How often are they botched? Almost every time.

Phone skills are a talent, that can be nurtured and developed. You can teach a script, but you cant teach someone who can follow a script how to make it flow-sound natural, and net needed information. There is only one thing we can sell on the phone, and its not a car...It's the appointment.

Customers will not make an appointment with a car or SUV. No, they can only make an appointment with someone they want to see-their friend and confidant in the car business...YOU! I talked about this in a post that I made the other day...HERE.

Let's face it...there are just some people who should not be answering the phone!

I don't know exactly what the numbers look like, but we know how much it to get each customer through the front door. It's hundreds! Phone up costs have got to be right up there as well. so much time and effort is spent making sure that every customer who walks in door is handled properly, why do we assign so much less value to those buyers who drive their phone to the dealership?

I could rattle on for days about phone ups, and making appointments, so let me just sum it up like this: Be careful who you have answering the phone. If 50% of your incoming calls aren't being converted into appointments, you better be paying a bit more attention. I have spent days trying to reach internet inquiries by phone...DAYS! Phone ups ARE appointments, just not all of them..It's a barrel I wanna' be fishin' in though.

g~

Comment by Jim Kristoff on September 20, 2011 at 10:34am: Too many times calls go unanswered in the dealership.

It certainly is a profit leak....

Good blog Chip.....

Comment by Chip King on September 20, 2011 at 10:14am: Jerry, I couldn't agree more that 1 to 1 is ideal---and more manageable--

With 93% of America carrying cells phones, the buying public is using the mobile apps to search for phone numbers and clicking to call.... what was as recently a 5 to 1 call to elead has grown to 7 to 1,....We are driving great results with the latest marketing strategies to the internet and to the phone, and there are still many challenges to more effective management of the "Caller's Journey". I agree that training is critical, and would add that training the right people is even more important....

Comment by Stan Sher on September 17, 2011 at 1:58pm: Very nice my friend. See you in Vegas.