COMMENT: Why many dealers lose out online

By Dan Vogel
March 21, 2005

Ten years ago, most dealers didn't know how to access the Internet. Though most now recognize how important the Internet can be for business, many are missing opportunities to capitalize on it. Underuse of the Internet may be hampering their ability to market effectively to prospects and customers.

As dealers evaluate how well they use the Internet, they should ask themselves these questions:

Are you sending visually stimulating e-mails to prospects and customers? Are e-mails personalized and targeted to recipients' needs?

Do you use the Internet to get to know your customers better? Do they know you?

How quickly do you respond to customers' requests?

Significant time and cost savings come only when dealers use the Internet as a relationship-building tool, not a meeting scheduler.

Virtual showroom

Some dealers set up a dealership Web site and think that is all they need to do to reach online customers. Creating an interactive environment to support the site brings a much greater return for the investment.

Corresponding with potential customers via e-mail is important, but the key is for dealers to translate what they do for showroom customers to their online prospects.

Online customers are serious about purchasing and respond positively to personalized outreach from dealers - from information on options to price negotiation. Dealers' e-mails should focus on customers' buying profile and specific inquiries.

Dealers should send regular e-mails that include add-on options, price quotes and even a photo of a salesperson. Those steps can have a serious impact on a prospect's likelihood to respond positively.

As some dealers have learned, sporadic outreach via the Internet is not enough. Coordinating online communications with more traditional outreach works. Dealers should follow up e-mail with phone calls to get a prospect's attention. This may require more than eight attempts. Dealers should equip their staff with phone scripts to help the process.

More outreach needed

Dealers also should send mailers and e-mails with special, targeted offers and discounts to draw interested parties into the showroom. As dealers correspond with prospects online and learn more about them, dealers can focus on prospects' favorite vehicles and options.

In addition, dealers should issue regular broadcast e-mails to their entire customer base. A personalized broadcast e-mail should be eye-catching and colorful, and, most important, convey a call to action. A lead-management tool enables dealers to follow up online inquiries, generate e-mail easily and schedule phone and mail follow-up, easing the duties of management and sales staff.

Move fast

One of the biggest mistakes dealers make is being slow on the draw. Ensure quick response time. Two-thirds of car buyers who initiated online communication in their buying process purchased a vehicle within 90 days, according to R.L. Polk & Co. research from September.

The study showed that the average online purchasing cycle is slightly more than 50 days, although one-third purchased within the first 30 days. So dealers must speed their reaction time to online inquiries. Many dealers may not know how essential it is to respond to an initial request within 30 minutes. Whatever their response time, they should aim to decrease it.

They also should not give up on a prospect too soon.

Now is the time for dealers to take an honest look at the holes in their online strategies and work to push their business to the next level.