1. The Human Touch:
Using Technology to Create an Extra Sales
Force in Your Dealership and Build Long
Lasting Customer Relationships
Lenny McGinley
Vice President, Dealer Sales
October 7, 2008

2. 2008 NEW-VEHICLE SALES FORECAST
17.5
17
Lowest figure
16.5
since 1992!
16
15.5
Nothing screams the need
15 for effective follow-up and
14.5 closing process than the
realities of the sales climate
14
13.5
'02 '03 '04 '05 '06 '07 '08
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3. DEALERS ARE SEEING SALES SLIDE
Everyone knows the economy has seriously impacted new vehicle sales.
Please estimate your overall new vehicle sales today versus a year ago.
State of New-Vehicle Sales as Reported by Dealers
Sales Down 55%
Stayed about the
same
18%
45% of dealers reported
new vehicle sales were flat
or up versus a year ago
Sales Up 27%
0% 10% 20% 30% 40% 50% 60%
Source: Survey.com, September 2008
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4. THERE IS LIGHT AT THE END OF THE TUNNEL
When do you think the new vehicle market will significantly recover
or really start to turn around?
Majority of Dealer’s Expect the Market to Turn Around in 2009
Later in 2008 9%
First half 2009 29%
Second half 2009 34%
2010 13%
2011 3% 63% of dealers expect the
market to turn around
Not in the forseeable future 2% by the end of 2009
Not sure 10%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: Survey.com, September 2008
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5. WHEN THE GOING GETS TOUGH
THE TOUGH GET GOING
What’s the MOST important thing helping you (or you think will help
you) during the economic downturn?
Better follow-up processes and
processes to convert leads into sales 50%
Targeted, measurable Internet marketing
21% The #1 focus for
(leads, used, etc.)
a dealership is
follow-up processes
Used vehicle sales 17% and lead conversion
processes
Service and aftermarket sales 13%
0% 10% 20% 30% 40% 50% 60%
Source: Survey.com, September 2008
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6. WHERE ARE DEALERS TODAY IN THEIR
FOLLOW-UP AND LEAD CONVERSION PROCESSES?
A ton of lost opportunities…and lost sales…
• 90% of ALL car buyers use the Internet to research a vehicle*
• 63% of ALL car buyers now request price quotes online**
• BUT More than 30% of leads go completely UNANSWERED**
Too few leads converting...too many missed sales and
losing business to the dealership down the street…
Sold at “intended”
dealership
100% 100%
10%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
90%
40% 40%
Sold at “other”
30% 30% dealership
55%
20% Of leads 20%
10%
converted
10%
to a sale
0% 0%
All New Vehicle Leads All Leads Converted to Sales
* Outsell Research 1/2007
** 2007 Dealer eBusiness Performance Study-The New Buying Influences
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7. FIRST: SPEED OF RESPONSE
Importance Only Increasing with Each Year – Car Shoppers Less Willing to Wait
34% of car buyers expect a 83% of car buyers expect a
response in less than 4 response in
hours – up from 31% in ‘07 less than 24 hours
Required Speed of
Response From
8% 10% 16% 49% 12%
Dealer/OEM to
Consumer Query
(% of consumers saying)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Immediately <1 hour 1-4 hours <24 hours
24-48 hours More than 48 hours Don't know
Source: Cars Online Study 07/08, CapGemini
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8. DISCONNECT BETWEEN
DEALERS AND CONSUMERS
Response Within 60 Minutes Dealer Perception
• 78% of dealers surveyed say their
100%
dealership followed up on leads with
78%
a personal response within an hour
50%
21% Consumer Perception
• 21% of consumers indicated that
Dealers Consumers
they received a response from the
dealership within an hour
Source: Survey.com, October 2007 and Autobytel Internal Survey, 6/07-10/07
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9. FAST RESPONSE
Response is Critical What Will Consumers Do If
You Take Too Long?
• In-market customers are Walkaway!!!
60%
the most impatient – 51%
demand a response 50%
within 4 hours or less
40%
30%
• 24% of leads close within 51%
1-10 days 20%
10%
25%
0%
Look for another dealer Look for another
manufacturer and/or dealer
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences
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10. WHAT KIND OF TECHNOLOGY ENABLES THAT
LIGHTENING-LIKE RESPONSE?
Lead notification programs..
• 53% of dealers now subscribe to a lead
notification program, which
instantaneously alerts dealers to an
incoming lead
• 83% of the top performing dealers have
processes in place to phone immediately
after receiving a lead
High levels of satisfaction ...
• Two-thirds of subscribing dealers
“completely agree” that lead notification
programs work well and believe that they
are worth participating in
Sources: J.D. Power DSOBS press release, August 2008
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11. FASTER RESPONSE = HIGHER CLOSING RATIOS
A quick response from a dealer is critical to
high closing ratios
• Dealers responding to Internet customers
within an hour have a 25% higher
closing ratio
• When a brand responds to a customer
inquiry within 20 minutes, conversion
rates are doubled
Sources: Third-Party Study and Capgemini Study of European automaker -Cars Online 07/08
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12. LEAD NOTIFICATION PROGRAM BEST PRACTICES
• Designated cell phone number as #1 option to call
• Whisper feature to speak loud, clear and slow with
customer information
• If using land line as optional number, develop process as to
how to handle calls
Source: J.D. Power DSOBS, 2007
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13. IMMEDIATE LEAD NOTIFICATION PROGRAM
EXAMPLE OF HOW IT SHOULD WORK
Automated Operator
Request Make the connection
Submitted
Your phone rings!
The customer be connected to your customer
Press “1” to submits
a A request has come in!
Purchase Request
Get the details from your
home, office or
mobile phone!
“Tim Rogers. Please
hold for message from
Bill Smith. You have
received a new
car lead from
Autobytel.
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14. RAPID RESPONSE CASE STUDIES
• Frankel Acura (2/08):
– Faster response times – Average response time is 20 minutes faster
– Closing ratios with showroom appointments increase from 75% to 85%
– Overall sales increase 5-10%
– More than 50% of cars are sold using Rapid Response
• Castle Toyota/Scion’s results (10/07):
– 52% higher closing ratios on customers contacted through Rapid Response
– 17-30 additional Internet sales per month
– Improved team morale and lower employee turnover
• George Chevrolet’s results (2/07):
– Closing ratios improved 300%
– Car sales through Autobytel have doubled
– Customer contact rates improved significantly
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15. DID YOU KNOW…
On average, it takes 4.27 attempts
to reach a live person on the phone
Source: eLeads CRM
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16. SO MANY LEADS, SO LITTLE STAFF
Average Monthly Dealer Web Inquiries/Leads
400
350 Increase of
300 300%
250
200
150 320
100
50 96
0
2001 2006
Source: J.D. Power DSOBS, 2007
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17. LIVE CALL PROGRAM BEST PRACTICES
• Calls derived from script specifically designed to:
– Gather information / pulse of consumer and their intent to
purchase a vehicle
– Establish buying time line for consumer
– Set the appointment
• Dealership process implemented to work with VIP customers
from start to finish
• Designated person at dealership to
welcome / hand off customer to internet
department
• Colored fax paper to indicate a VIP
appointment
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18. LIVE CALL VIP APPT SETTING PROGRAM
EXAMPLE OF HOW IT SHOULD WORK
Dealer to implement established follow-up process
Dealer receives
Dealer receives
Automotive customer specialist talks to purchase request
notification of customer
customer and.. and attempts
in-dealership VIP
customer contact
appointment
• Scores Readiness to Buy
• Sets in-dealership
VIP appointment In-dealership VIP
Appointment
Customer Info
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19. DEALERS WHO DROP LEADS AFTER
A COUPLE OF WEEKS ARE DROPPING SALES
Among leads that result in a sale…
43% close within 30 days 57% close after 30 days
30%
25% More leads convert into
sales after 90 days than do
20%
in first ten days!
15%
32%
24%
10%
15%
5% 11% 10%
8%
0%
1-10 11-20 21-30 31-60 61-90 90+
Average vehicle purchase sales cycle is 50 days *
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences
*Outsell Study 2007
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20. ACTIONS THAT CONVINCED CAR BUYERS
TO VISIT DEALERSHIPS
60%
50%
40%
30% 59%
53% 50%
20%
29%
10% 22%
0% 5%
Received email Answered Offered Competitive Received direct Did not
questions competitive price for trade mail proactively
price in contact me
Highest performing dealers studied use brand/product
info templates to tell the brand and dealer story in emails.
Source: 2007 Dealer eBusiness Performance Study-The New Buying Influences
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21. EMAIL MARKETING PROGRAM BEST PRACTICES
• Professional look and feel with dealership logo
• Link to website
• Establish a link to the direct contact at dealership
• Email alert to dealership when consumer opens email
• Reports indicating who / when / how many
times a consumer has opened an email
• Options for consumers to get a "test drive"
or more information about the vehicle their
looking for
Source: J.D. Power DSOBS, 2007
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22. AUTOMATED EMAIL MARKETING PROGRAM
EXAMPLE OF HOW IT SHOULD WORK
Send Dealer Branded Emails at Timely Intervals
X X
X X
X
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23. AUTOMATED EMAIL MARKETING PROGRAM
EXAMPLE OF HOW IT SHOULD WORK
• Prominent dealership branding
• Engaging content/tips for
the customer
• Link to dealership website
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24. SUMMARY
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25. THANK YOU!