Converting Shoppers into Buyers
By Grant Dunning
According to NADA, 90% of the people who visit a car dealership without buying are never contacted again by the dealership about buying the vehicle. Unbelievable, but true. And the tragedy is that you've just spent $50 to $100 in advertising to bring just one person into the dealership. Why don't dealerships follow up with unsold prospects? While most dealers have good intentions, turning intentions into action is quite a different story.
Most dealers believe (or hope) that their sales staff will take care of the follow-up. Unfortunately, the systems and training are insufficient to assure consistent and timely follow-up with prospects. 83% of the people who actually buy cars told their salesperson they were "just looking." In the eyes of the salesperson, this person is just a tire kicker-hence the 90% who are never contacted again about buying the vehicle. Yet, they do buy: if not from you, from someone else.
How can you convert more of your shoppers into buyers?
First, your staff needs to realize that the majority of people who visit your dealership are serious about purchasing a vehicle. Industry statistics state that 78% of people who go out and look at a vehicle actually buy one. They are not tire kickers. They are customers.
Second, if they do not buy from you on their first visit, they need to be followed up if you want them back in your showroom. You have already invested your advertising dollars to get them to your dealership. Allowing 8090% of your prospects to disappear without buying from you is bad business. Investing in the resources to follow up with these unsold prospects is worth every penny. 58% of people buy the same product they looked at the first time. You need to make sure that your prospect doesn't buy that same product from your competitor down the street.
Third, you need to differentiate yourself from your competition. You should provide service above and beyond your competition, unless you want to compete strictly on price. 71% of people who buy do so because they like you, trust and respect you - not because of the lowest price. What system do you have in place to help develop trust and respect with your prospects? If 90% of prospects are never contacted after a visit to any dealership, then following up with them is a logical step to differentiating yourself.
Establishing a turnkey, consistent follow-up system keeps your name in front of the prospect and will help you convert more shoppers into buyers. Every prospect is a potential customer and should be thanked for visiting your dealership. Without a process to uncover the reason that they left without buying a vehicle, how can you expect to sell them? You should be letting them know that you truly want to earn their business now and in the future. Actively following up with your unsold prospects will separate you from the competition, increase your return on advertising, and ultimately increase your sales.
Grant Dunning is the president and CEO of the OCT Group - a relationship marketing company working with more than 1,000 dealerships in all 50 states and Canada since 1986. For the past decade, Dunning has been designing sales follow-up programs that help dealerships improve their customer retention and loyalty. Dunning is an active member of TEC (The Executive Committee), an international organization of CEOs, and graduated from the University of Southern California. gdunning@dealeronline.com
