News Articles

2007 is over, but the wealth of data we captured about 2007 auto sales lives on - in the form of the 2007 Cobalt Dealer eBusiness Performance Study. Here at the start of 2008, we thought we'd hit you with some statistics and some conclusions that can help your dealership in the months to come.

To Follow Up or Not to Follow Up ... It's a Silly Question

Would you believe that 30% of Internet-submitted leads still are not getting responses from dealers? Do you think this is because there are some dealers that sell their entire inventory before the end of the month and simply stop reading their email?

The truth, of course, is that there's not a dealership in the country that wouldn't like to sell more cars. And yet, overall, 30% of hand-raisers aren't managing to get called on. With this being said, it might be time to ask yourself a few questions: "Have I followed up with all of my leads?" Or, "Do I have more opportunities waiting for me in my CRM tool?" This may also mean taking a closer look at your work load and ensuring you have the appropriate level of leads for your department.

The lesson for you to take to heart: Respond to every single lead that comes in as soon as possible. It's a sure-fire way for you to put distance between your dealership and those that are less than serious about the Internet.

Timely Isn't Timely if You Don't Answer the Customer's Questions

Some dealers think that a 24-hour turnaround for email responses is acceptable, and our data shows that most consumers do expect to hear from you in under a day. However, that timeframe is shortening. The fact is that 20% of customers expect a response in four hours or less.

What's more, customers expect dealers to get back to them promptly with replies that directly address the questions they've posed. It seems that many dealers reply quickly but without providing the information customers ask for: 75% of online auto buyers complained that their questions went unanswered.

What do customers do when they don't get their questions answered? Our study shows that 23% wound up going elsewhere because of unsatisfactory interactions with a dealer. Customer expectations are growing, and dealers are going to have to measure and improve their responsiveness - both quantitatively and qualitatively - to remain competitive.

Your Brand Matters More Than Ever

We've said it a million times: online customers are shopping for a dealership, not just a car. If you put all your effort into selling them just the car, and not you and your dealership, why shouldn't they go down the road and buy the same vehicle from a dealership that has differentiated itself.

Last year, only 30% of dealers highlighted their own value in their interactions with Internet customers. Convincingly tell customers what sets you apart - why they should buy from you, even if you don't offer the lowest price - and you'll already be doing a lot to set yourself apart. Back up this message with integrity, superior service, friendly staff, etc., and you'll be unstoppable.

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As 2008 progresses, we'll continue to sort through 2007's data for tips that will give you an edge. Look for more statistics-based advice in future issues of Dealix Dealer Newsletter.

For more information about the 2007 Cobalt Dealer eBusiness Performance Study, or to reserve your copy of the white paper, please visit www.cobaltgroupresearch.com.