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A clear majority (56%¹) of people submitting new-vehicle leads online wind up making a purchase. This simple fact means that Internet leads are a valuable way to connect with buyers who are serious about buying.

Other statistics reveal some not-so-simple facts: 42%² of these buyers end up buying a used vehicle, even though they identified themselves as interested in a new vehicle. A similar study³ found that 58% of consumers buy a vehicle different from the one they originally intended. And an amazing 92%⁴ of consumers wound up making their purchase at a dealership different from the one to which they submitted the lead.

One possible conclusion to draw from these figures is that it's all a crapshoot - or that the benefits of Internet leads ultimately accrue to all dealerships, regardless of the effort they make. But that's not how we think about automotive retail, and we know that this isn't the way you think about your business. Thankfully, you can view these fickle customers in a way that can make the statistics work in your favor.

Basically, what's required is a re-thinking of the sales funnel image. You know, the one where the top of the funnel takes in a huge mass of undifferentiated and undecided consumers, and the bottom emits a steady stream of can't-miss buyers. The new image should be an hourglass. The middle, narrow part of the hourglass is the point where consumers have done their research, think they know what they want, and submit a lead, either via a third-party site or directly to a dealer.

It's when they come in contact with the dealer that things open up again. This can happen because the dealer suggests a used car option, even though the customer inquired about a new vehicle. Another factor can be the effect of suddenly seeing other options right there on the lot. Perhaps the most significant factor, however, is human nature and the dealer's failure to take it into account.

When the customer submits a lead saying that he or she wants to buy a new Accord, for example, there's actually still a fair amount of uncertainty on the consumer's part. However, it is the tendency of the Internet sales rep is to take the lead at face value - to assume that he or she definitely does want to buy a new Accord. This can be off-putting, but the customer doesn't have to have a consciously negative reaction to be driven away; all it takes is the feeling of that uncertainty being stirred up again by the behavior of a sales rep assuming the choice is final.

What can you do to solve this? The trick, we believe, is to be more sensitive to the possibility that your leads have not made up their minds - to buy new, to buy the make they've identified, or even to buy from you. As a result, you have to do an exceptional job of selling your dealership while exploring their needs and uncertainties and guiding them - hopefully - to a solution that's sitting right there on your lot, even if it's not the vehicle they identified at first.

We'll leave you with two specific pieces before sending you off to practically apply this good information:

One, revise your process so that your Internet sales reps are careful to assess where leads really are in terms of making a decision. When there's any doubt, err on the side of caution and work with the customer to find out what he or she really wants.

Two - and this is an extension of the first - go through all your templates and eliminate all language that might make the customer feel roped in to the desire that he or she has originally expressed. If a customer inquires about a new Malibu , it's fine to reflect that in the initial email response. But that same response should show openness to satisfying the customer, no matter what the final decision should turn out to be. In fact, this is the first and best thing you can do to sell your dealership and make this customer yours.

Sources

1 Cobalt Group 2005 eBusiness Industry Study conducted in conjunction with R.L. Polk

2 Cobalt Group 2005 eBusiness Industry Study conducted in conjunction with R.L. Polk

3 Cars.com 2004 study of 2200 dealerships

4 Cobalt Group 2005 eBusiness Industry Study conducted in conjunction with R.L. Polk