Improving Closing Ratios

1. The Fast and the Furious
Improving Closing Ratios Through
Faster Response Time and Long Term Follow-Up
Tim Rogers, Vice President, Sales Operations

2. Closing Ratios
• Response Time
• Communication
• Long Term Follow-Up
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3. Today’s Consumer
The profile of the average adult American Internet user is very similar to the profile
of the average American.
The demographic shift -- from early adopters of new technology who are young,
relatively wealthy and predominantly male, to average Americans -- is important
because it validates the Internet as a mainstream marketing, advertising and
research platform.
Online Population 1996 2001 2006 Average American
in 2006
Male 62% 49% 48% 49%
Female 38% 51% 52% 51%
Income $63k $50k $53k $46k
Adults 18 - 49 88% 76% 59% 68%
Adults 50+ 12% 24% 37% 30%
Sources: Insight Express data 2001, US Census data 1996-2006, Harris Interactive 2006, iNetShops.com
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4. Today’s Consumer
• 67.5% of new vehicle buyers use the Internet to research vehicles
• The Internet now leads more than twice as many late-model, used-vehicle buyers to the
vehicles they purchase than traditional newspaper and magazine classified ads
• 77% of automotive Internet users visit an independent automotive website (3rd party) in
their shopping process
• Internet-generated new car sales are expected to grow from 4.1 million in 2005 to 6.6
million in 2010 —up from 25% of total sales in 2005—to 35% of total sales in 2010
• The Internet wielded considerable influence on car purchases for 16 million Americans in
2005, up from 13 million in 2002.
• On average 44% of car buyers rely much more on independent car buying websites than
on dealership websites.
• 39% of automotive Internet users report the Internet had some/big impact on their dealer
selection
• 35% of new vehicle buyers submit leads at more than 1 website
Sources: Major third-party studies including J.D. Power NewAutoshopper.com and
UsedAutoshopper.com, Pew Internet and American Life Project, DoubleClick Touchpoints IV, Jupiter Research
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5. Consumer Adoption of the Internet
Percentage of New Vehicle Buyers Turning to the Internet for Research/Shopping
80%
70%
60%
50%
40%
30%
20%
10%
0%
1998 2006
Source: J.D. Power NewAutoshopper.com Studies, 1998-2006
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6. Response Time
Percent of Consumers Who Heard from a Dealer within 3 Days
90%
85%
80%
75%
70%
65%
60%
55%
50%
2003 2004 2005 2006 2007*
Reps ons e Rate 80% 84% 85% 85% 86%
Sourc e: A BT 3 Day Surv ey
*Through February 2007
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7. Response Time
Percent of Consumers Who Heard from a Dealer within 1 Hour
25%
20%
15%
10%
5%
0%
2003 2004 2005 2006 2007*
Reps ons e Rate 16% 17% 19% 21% 20%
Sourc e: A BT 3 Day Surv ey
*Through February 2007
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8. Bottom Line:
Sales are Being Left on the Table!
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9. Solutions
• Instant Messaging
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10. Instant Messaging
AOL
Messenger
MSN Yahoo
Messenger Messenger
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11. Solutions
• Instant Messaging
• Wireless Paging Technologies
• Rapid Response
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12. Rapid Response
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13. Long Term Follow-Up
Purchase Cycle
Online Purchase Cycle
80% of Car Shoppers Never Get a Response!
%
1
43% 26% 11% 20%
0 - 30 Days 31 - 60 Days 61- 90 90+Days
Days
0 % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
7 – 10 Days
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14. Solutions
• Broadcast Emails
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15. Broadcast Email
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16. Solutions
• Broadcast Emails
• Newsletter
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17. Dealer Newsletter
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18. Solutions
• Broadcast Emails – Stay top of mind with your customers
easily and consistently
• Newsletter – Stay in touch with your customer base while
promoting specials
• CRM Automation – Use automated follow-ups to boost
closing ratios
• Email Manager – Keep in touch with your long term
buyers with strategic email follow-up campaigns
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19. Email Manager
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20. Dealer Testimonial
“Rapid Response led to immediate results. Within the first
month of using the program, closing ratios and sales on
Autobytel leads improved 300%. And in the ensuing four
months, George Chevrolet has doubled its sales through
Autobytel, which has rapidly moved from the middle of the
pack of the dealership’s online buying services to become
George Chevrolet’s #1 sales and ROI generator.”
Tom Black, General Manager
George Chevrolet
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21. Q&A
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