The Cobalt Group, Together with Yahoo! and R. L. Polk & Co. Unveil the 2007 Dealer eBusiness Performance Study at J.D. Power Internet Roundtable

SEATTLE - October 18, 2007: The Cobalt Group, together with Yahoo! and R. L. Polk & Co. proudly present the 2007 Dealer eBusiness Performance Study, the largest research initiative in the automotive industry.

Findings from the study include dealership lead handling and Internet sales performance and how online resources like search and consumer generated media influence shopping behavior.

The study incorporates a variety of research methods including:

Two Internet-based surveys: one of 550 vehicle shoppers and purchasers, and one of 1,000 car purchasers
Analysis of over 1 million leads from 1,140 dealerships representing 35 brands to assess sales rates and time to close
eMystery shop campaign of over 2,100 dealers encompassing 20 brands
Onsite interviews with 20 top performing dealers

A sequel to Cobalt’s 2005 Industry and Dealership eBusiness Performance Study, this analysis takes a closer look at car shopping from the consumers’ perspective to understand the new buying influences that impact how they shop and pre-select dealerships, why they switch brands, the rising influence of online dealership reviews and the value of transparency in interaction with dealership sales staffs. Below is a sample of the results and the takeaways this study provides:

The Results

88% of consumers use the Internet for research prior to visiting a dealership
Over 30% of Internet leads sent to dealers go unanswered
21% of purchasers switched dealerships based on consumer reviews they read
Of those that purchased a different brand, 23% did so because of poor dealer interaction

The Impact

Online “location” and brand is as important as the “brick and mortar” dealership
Dealers can increase gross by implementing email response procedures
Positive consumer reviews can help attract and retain customers
Investing in sales staff and cultivating consumer reviews can increase gross

Upcoming Webinars

Want to learn more? Please join us at an upcoming webinar as we review the findings shared at the 2007 J.D. Power Internet Roundtable and the findings of other related studies.