Establishing the Real ROI of Dealer Chat

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How auto dealers can maximize the ROI from automotive live chat - a presentation given by John Hanger, CEO of Contact At Once! at the Ignite Dealer Summit, September 2011

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Establishing The Real ROI of Online ChatJohn HangerPresident & CEO, Contact At Once! LLC

© 2011 Contact At Once! LLC, All Rights Reserved

Pay Attention If:

• You are not using chat (see what you’re missing)

• You are using chat (maximize ROI)• Everyone else is excused ;-)

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Nielsen reports that beginning in 2008, text messaging surpassed phone usage as the primary method of communication

In 2010, text messaging exceeded phone calls by more than a third.

2010 Text Messaging

2010 Phone Calls

35% more

People Like Text-based Communication

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Dealer Chat Milestones

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Chip Perry, President & CEO of

AutoTrader.com

“Faster than email and more convenient than a phone call, online chat enables consumers to

get instant answers to their questions while enabling dealers

to begin creating a relationship with shoppers

before they show up on the lot.”

“Tests… by AutoTrader.com showed that (dealers) experienced an average

lift in shopper interaction of about 20%”. - Press Release, 3/15/2011

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67% of Chat Users Plan To Purchasea vehicle in the next 30 days

67% … Ready to purchase within the next month

4% … Not currently in market to buy a vehicle

25% … Ready to purchase w/in the next 1-6 months

3% … Ready to purchase w/in the next 7-12 months

1% … More than a year

Source: Cars.com Dealer Chat Consumer Survey, 2009

Time of Day Chat “Heatmap”

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Note that the peaks occur during the work day: Workers are shopping, but don’t want to announce that fact to their co-

workers!Relative distribution of chats over a 24x7 period

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Websites with chat

16.8%

Websites without Chat

83.2%

9,000+ Dealers Using Chat

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ROI Calculator

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ROI Calculator Results

• Contact At Once! » 18-93 Additional Units•Outsell » 21 Additional Units• Active Engage » 42 Additional Units• Car Chat 24 » 20 Additional Units

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"Out of the 125-130 cars a month our BDC is responsible for selling, a good 20 of them are the result of a chat."

Rob Fontano Marazzi Dealerships

"Whenever you can engage in chat, you're differentiating yourself from the competition. We fluctuate between a 20-25% closing ratio with our chat leads."

Jeff KershnerFrederick Nissan & DealerRefresh.com

The Real ROIof online chat

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"Group-wide, out of the 4800+ cars our internet department sold last year, 10-12% came as a direct result of chat."

Wayne UsseryJim Ellis Dealerships

"We sell between 10-20 vehicles each month to customers that first contact us via chat."

David ParrotGlobal Imports BMW

The Real ROIof online chat

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Online Touch Points

Chat allows you to connect with customers – no matter where they land.

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Regardless of where you place chat the RESULT is a:

TYPICALLEAD LIFT

Dealer Website Platforms

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What Is Driving Dealer Chat Adoption?

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Your Takeaways

• Chat will help you to sell more vehicles

• Many dealers use chat; few maximize ROI

• Max ROI = Chat at every touch point

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Your To-Do List

• Start Chatting• Understand Your Website Provider’s

Chat Strategy • Maximize Your ROI By Adding Chat to

All Possible Touch Points

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Questions?jhanger@contactatonce.comwww.autodealerchat.com

Slides available www.slideshare.com/contactatonce/