Distributing leads is no longer of this time!

Sometimes I encounter dealers, especially those with multiple branches, who, despite all the data and common sense, employ a methodology regarding leads that doesn’t make sense. I don’t draw this conclusion because my perspective is the only correct one, because it isn’t, and there are really many more perspectives, but anything that leads to delay results in lower conversion rates. Speed is paramount in 2024, even in lead follow-up.

Speed is paramount in 2024, even in lead follow-up!

Let me give you an example: at some dealer companies, marketing not only has the task of generating online leads but also has to handle the distribution of those leads. This means that when the lead comes in, it is first qualified by marketing? And it goes like this:

• Is the car still available?
• Which branch has the car, but does the customer also come from there?
• Does the customer have a trade-in, and is what the customer is asking for reasonable?
• What is the potential delivery time?
• Offerings.

Available?

If the car is available but is at dealership A, while the customer lives closer to dealership C, then choices need to be made. Do you send the customer to dealership A or C? I wouldn’t hesitate to choose dealership A, but the reality proves otherwise.

In terms of lead follow-up, we place a lot of emphasis on the customer’s location. I live in De Steeg, on Monday I’m in Amsterdam, on Tuesday in Maasdijk and Doesburg, and on Wednesday in Ede. In other words, my place of residence is completely irrelevant. And that applies to many. Persisting based on postcode, even though the customer hasn’t done this themselves, is therefore at least odd…

Trade-in Vehicle

For a trade-in vehicle, marketing first gathers relevant information by sending an email to the customer. The thought is that with incomplete information, the sales department can’t do much?

Regarding delivery time, it is assumed that the customer has made their choice 100% and is not open to an interesting alternative. With low bids via Marktplaats, it is often assumed that the bid is not the starting point of a dialogue but a bid that the seller can’t do anything with.

If the lead eventually reaches the salesperson, it is often many hours, sometimes even days later. The picture I’m painting here, I see almost daily. The response time, indicated by a checkbox, is quickly set by the marketing or online sales department, but the actual contact takes much longer than the checkbox suggests…

Thousands of Calls

Now we know from thousands of calls via Calldrip that calling directly, preferably within five minutes, is the best way to follow up on leads. After that, the chance of reaching voicemail quickly becomes 50/50, while within five minutes, the chance is 70/30. Calling an hour, two hours, or even a day later is almost a hopeless mission to speak to the customer at all.

Moreover, it costs you more than one call attempt. I see this also in the Callcenter CARMEN Automotive BDC. Nowadays, we need about four more call attempts than, say, five years ago. The action of the customer, the online request, is often too long ago for the lead to pick up a call from an unknown number. Since most dealers don’t call more than twice, there are too many leads that never get a dialogue.

High Conversion Rate

Dealers boast a high conversion rate of leads they speak to or for which they may make a proposal. They don’t calculate from gross leads but from net leads. An incorrect method. If you apply the common 60% rule, you get a conversion of 5% instead of 13%. In other words, you need a multiple of leads to achieve an acceptable conversion and therefore sales figures. I understand that if you have developed the process yourself and have control over what comes in, it’s difficult to let go of the system. And yet it should. After all, you’re measuring with a crooked stick (net versus gross leads), resulting in an overestimated percentage. You’re misleading the company.

Directly to the Salesperson!

Leads should go directly to a salesperson who is best equipped to follow them up. And yes, not all leads are equal, some (own website leads) are good, others less so. In the mix, the salesperson is best able to follow up on active leads (people who have requested information themselves). When I ask the people who have created the detour for online lead follow-up where the consumer who calls about a car on Marktplaats ends up, they end up with the salesperson. And if I walk into a showroom for information, I also come into contact with the salesperson. Why doesn’t that happen when I submit a form? I’m the same buyer with the same information needs!

And yes, Calldrip can help to follow up on leads quickly and effectively!