Scott Pechstein: No Thanks, I'm just looking

No Thanks, I'm just looking with Scott Pechstein

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No thanks, I’m just looking

Scott Pechstein

Scott Pechstein | Autobytel | Vice President Sales | [email protected]

Scott Pechstein | Autobytel | Vice President Sales | [email protected] l

Copyright (c) 2014 Autobytel Inc.

• What “I’m just looking” really means

• How it relates to online behavior

• Best Practices to increases sales opportunities

• Give you consumers the option to Text

Overview

mailto:[email protected]



How do you respond to “I’m Just Looking”




• “I’m “just selling.”• “Your time is valuable. Let me point you in the

right direction”

• Avoid the “yes or no” question.• Are you looking for a new or used car?• Are you looking for a car or a truck?

“I’m Just Looking”




• Two Key Reasons• Avoidance of being sold right now (key is RIGHT NOW)• Legitimate fact finding visit

• The Reality• Dealership visits are down• More fact finding is conducted online

Why are they saying “I’m Just Looking”




• Industry Influences Purchase behaviors continue to change More research done online

Brand Parity Merging of

Brands

Less Loyal Consumers

Product Parity

Increased Marketing

spend

Industry Quality Awards

Improved Content

Website, Inventory Research

Ratings and Reviews




• New car buyers spend 11.5 hours online • (R.L.Polk/AutoTrader.com Automotive Buyer Influence Study)

• 37% of shoppers enter market without a specific brand in mind • (Compete Vehicle Cross Shopping Analysis, July 2012)

• 59% of consumers don’t decide which vehicle to buy until final week • (JDP 2012 New Auto Shopper Study)

• New-vehicle shoppers consider an average of 3.3 vehicles • (JDP 2013 Avoider Study)

• Baby Boomers only visit 1.9 dealers. All generations want to avoid salespeople in the future

• (AutoTrader Next Generation Car Buyer Study)

Industry Studies




Where’s the Funnel?From Funnel…to Funnel Cake

The buying funnel isn’t dead, just different.




Dealership brand is featured• Test drive, vehicle features,

professional walk around

• Sales Consultant = Vehicle Consultant• Who, how, what?

Consumers offered personalized vehicle presentation• New, used, CPO / models, trims, colors,

optional equipment

Dealership Advantages



Less visits = more burden on the internet lead process to drive visits

Based on their dealership experience, in the future they will avoid salespeople:

56% Gen Y49% Gen X37% Baby Boomers

Dealership Experience

(AutoTrader.com Next Generation Car Buyer Study Sept 2013)





• What demographics and buying behavior trends do we know about this consumer?

• How committed are they to my brand?

• Do we stop at price or do we start asking questions?

Online Experience


Where are shoppers Buying Over 6 million Autobytel internet leads sent to Polk

annually

Polk matches leads to State Registration data for all 50 states

TPL close rates are 18 to 25%






Leaving sales on the table

Dealer had a 10% close rate but lost at least 7 additional sales

Dealer Name Number of Leads Total PurchasedPurch Assigned

DealerPurch. Assigned Dealer- Make

Model YearPurch Other

DealerPurch. Other Dealer - Make Model

YearPurch Unknown Dealer – Make

Model Year

Anytown VW 40 11 4 6 1

Anytown VW VOLKSWAGEN | PASSAT | 2014

Anytown VW VOLKSWAGEN | JETTA | 2014

Anytown VW VOLKSWAGEN | BEETLE | 2013

Anytown VW VOLKSWAGEN | JETTA | 2012

Main Ford FORD | FUSION | 2014

Village Nissan TOYOTA | COROLLA | 2012

Main Used FORD | FUSION | 2011

Other VW VOLKSWAGEN | PASSAT | 2014

Main Hyundai HYUNDAI | GENESIS COUPE | 2011

Another VW VOLKSWAGEN | BEETLE | 2013

CHEVROLET | S TRUCK | 1996

Purchases based on 1 month of leads and up to 3 months registration period

Lead Date Period: MARCH 2014Sales Match Period: Lead Date + 90



• Bought Used – any make• 44.17%

Submitted a New Car Purchase Request

New to Used Defection


Why Buy from Me

1

Vehicle of

Interest

2

Alternative Vehicle(s)

1 New & 1 Used

3

Quick response times and continuous follow up are key.

Traditional Best Practices



Why buy from me

2

Vehicle of

interest

3

One size fits all does not work – emphasis needs to vary for each deal!

Internet Best PracticesAlternative vehicle(s)

4

All used options

5

Why Buy Brand

1



How do I engage the consumer?

• Phone Challenges

How many times do I call? At different times? Do I sell the car or the appointment?

• Email Challenges

Automated responses and how often? Do they seem like auto responses? Do I offer pricing?

Internet Leads (“Just Looking” Equivalent)



Communicate Differently• Reinforce the brand.• Mention various trims and similar models.• Explain CPO / used inventory (all models).

In Review




Explore New Opportunities• Texting• Virtual Showrooms (With audio interaction)

The Road Ahead



Why Mobile?





• It’s not just Millennials • Note the income levels and prime demographics

Who’s Texting




Click to call is very popular on smartphones…

Call Volume vs. Text Volume

…But note how text volume out paces call volume in all age groups

21 to 1 12 to 1 7 to 1 5 to 1 3 to 1




Not Far from the Truth




• Text adoption is growing 98% of text messages are read (vs. 22% emails, 29% tweets and 12%

Facebook posts). (Frost & Sullivan 2010, Slick Text)

• Character limits lead to conversation• Consultative approach leads to conversion

Two way dialogue• Ability to respond to consumers on the lot

Your lot and others

49% of automotive smartphone users made a purchase related to that interaction (The xAd/Telmetrics Mobile Path to Purchase Study)

Get Ready to Text




Get Ready to Text




Recent Text Message Cases = Multi-Million $$$ Settlements:

• Lithia Motors - $2.5 million class-action settlement (Between $175 and $500/phone number)

• Twentieth Century Fox - $16 million class-action settlement ($200/ phone number)

• Simon & Schuster - $10 million class-action settlement ($175/ phone number)

• Timberland Company - $7 million class-action settlement ($150/ phone number)

Tough TCPA Regulations




What if This Happened?

$1,500

$1,500

$1,500

$1,500




• Communication should be logged and saved (legal compliance)

• Hierarchy rules in place to hide phone numbers

• Opt-in consents and opt-out STOPS must be managed and stored

• Should load easily into CRM

Text Gateway (LMS for Text)




• The traditional buying funnel has changed

• Allow consumers to communicate with you the way they prefer! Higher engagement with more efficient communication Capture the high % that leave without filling out a lead form

• Avoid “just looking” – while at your website / your virtual lot.

Summary




Today it is not about generating more leads…

It is about generating more engagements (conversations) that lead to more sales.

“I’m Just Looking”


Contact Info

Scott Pechstein

Autobytel Inc. Vice President,

Sales

Text me! (949) 278-8618

[email protected]

Scott Pechstein: No Thanks, I'm just looking

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