Text and Engage With Today s Changing Consumer

Transcription

1 Text and Engage With Today s Changing Consumer Scott Pechstein, Vice President of Sales Autobytel Inc. Irvine, CA scottp@autobytel.com

2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 2

3 Learning Objectives Upon completion of this workshop, you will understand the importance of texting to engage with visitors on your dealership website and in your store; the processes involved with texting correctly and compliantly; and best practices tips and advice to help you implement a full scale texting platform into your business operations to drive sales and improve the customer experience. 3

4 Overview 1. The importance of texting. 2. The processes involved with texting correctly. 3. Now we are texting, what are we saying? Best practices tips and advice to best engage today s consumers. Online, on the phone, and on the lot engagement highlights. 4

5 Section 1: The Explosive Growth of Texting 1. Mobile/Texting: Call Volume Versus Text Volume 21 to 1 12 to 1 7 to 1 5 to 1 3 to 1 5

6 2. Get Ready to Text: The statistics are too compelling to ignore! a. 98 percent of text messages are ready, compared to 22 percent s, 29 percent tweets, 12 percent Facebook posts. (Source: Frost & Sullivan 2010) b. Character limits and conversation. c. Consultative approach leads to conversions. d. Ability to respond to consumers on the lot yours and others! e. 49 percent of auto smartphone users made a purchase related to that interaction. (Source: The xad/telmetrics Mobile Path to Purchase Study) 3. Text and Automotive Research (*Source: Placed, Inc. and Cars.com Mobile Device Use at the Dealership, January 2014) a. 58 percent use smartphone to research dealerships and/or vehicles prior to visiting a dealership.* b. 25 percent used only their smartphone to conduct research prior to visiting a dealership.* c. 63 percent used their mobile device to research and shop while at a dealership.* 4. Showrooming (*Source: Placed, Inc. and Cars.com Mobile Device Use at the Dealership, January 2014) a. 63 percent used their mobile device to research and shop while at a dealership.* i. 52 percent visited an additional dealership as a direct result.* ii. 72 percent were more likely to visit another dealer than those not using a mobile device on the lot.* 6

7 5. Mobile Actions While on a Dealer s Lot 6. TCPA Makes it Tough: You can t afford it. Lithia Motors - $2.5 million class-action settlement. Twentieth Century Fox - $16 million class-action settlement. Simon & Schuster - $10 million class-action settlement. Timberland Company - $7 million class-action settlement. 7. Explaining Text Gateways (LMS for Text) a. Step #1: Communication logged and saved. b. Step #2: Hierarchy rules to hide phone numbers. c. Step #3: Opt-in consents and opt-out STOPS managed and stored. d. Step #4: Should be easily integrated into your CRM 7

8 8. Texting Restrictions New federal TCPA rules apply to text messages as of October 2013 Generally -- require you to get Express Written Consent from the recipient before you send a text Great deal of uncertainty in the law regarding application of new rules and auto dial definition You should speak with your legal counsel about how to comply with the new rules These materials are premised on the assumption that you have obtained the required consent 8

9 9. An Example of Texting Done the Wrong Way Many dealers are using their personal smart phones to text with customers. This is a tremendous risk. Here is why it is wrong, and how it can go wrong: a. There is no system in place to allow for customer permission to text. b. The dealership cannot monitor what the salesperson is doing, and it does not provide for dealership logging or tracking to occur c. There is no assurance offered to the customer that the opt-out request was received or granted. This can lead to up to $1,500 in fines PER INCIDENT. Here are five words that MUST automatically trigger a customer s opt out: Stop Quit End Cancel Unsubscribe 9

10 10. Texting for Sales Ability to communicate more effectively during the shopping/research period o 42 percent of car shoppers are currently influenced by dealership websites text (SMS) can improve that number Hook those consumers showrooming from another competitive dealership 11. Texting for Service Service advisor explains benefit for texting service updates Service advisor gets consumer to sign acknowledgement form for permission to text Dialog is logged just like a sales engagement Ability to take a picture of necessary repairs or concerns Customer satisfaction improves Repeat service visits 62 percent of vehicle owners said customer service could influence future purchases 10

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12 12. Text-Message Marketing Leverage your existing marketing by adding keywords and short codes and technology is now advancing so you can allow consumers to text directly to your vanity phone number. 12

13 Section 2: Now we are texting, what are we saying? 1. Industry Influences Brand parity. Product parity. Improved content. 2. Pertinent Industry Data 37 percent of shoppers enter market without a specific brand in mind. (Compete Vehicle Cross Shopping Analysis, July 2012) 59 percent 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) 3. Today s Buying Cycle: From Funnel to Funnel Cake! The actions from the traditional buying funnel still exist, but they no longer happen in a clean, narrowing, linear fashion. We don t know where consumers are in the funnel anymore. Consumers might move down the funnel, but begin a new phase of research and change their mind causing them to go back up funnel. No two consumers are alike. You might have one consumer consistently narrowing their choices until they decide on one vehicle, and you might have another consumer deciding on four different vehicles and all of a sudden narrow it down to one particular vehicle. Furthermore, we don t know exactly where the change occurs. The buying cycle is no longer linear, and most times, it resembles a funnel cake more than a proper funnel. 13

14 4. Dealership Advantages Brand is featured during test drives, vehicle-features explanations, and professional walk-arounds. Sales consultants = vehicle consultants to explain the whos, the hows, and the whats of the vehicle and the buying process. Personalized vehicle presentation for new, used, CPO models, trims, colors, and optional equipment. 5. How a Bad Dealership Experience Impacts Certain Demographics 56% of Gen Y will avoid in the future. 49% of Gen X will avoid in the future. 37% of Baby Boomers will avoid in the future. 6. Online Experience What do we know about this consumer? How committed are they to my brand? Do we stop at price? 7. Traditional Best Sales Practices Why buy from me? Vehicle of interest. Alternative vehicles (one new, one used) 14

15 8. New Sales Best Practices Why buy my brand? Why buy from me? Vehicle of interest. Alternative vehicle(s). All used options. 9. Just Looking with Internet Leads Phone challenges. challenges. 10. Final Thoughts Consumers are spending a significant amount of time online and at the same time spending less time off-line. Dealers need to create an online process that paves the way for an easy transition when the consumer visits the dealership. Consumers are coming to the dealership to re-affirm what they saw online. 15

16 Allow consumers do as much of the sales process before arriving at the dealership. As you can see below, the longer the final sales process takes, the lower their satisfaction. Less satisfaction equals less repeat business, less referrals, and jeopardizes you service business. 14. DO THIS AS SOON AS YOU GET HOME Make sure no one in the dealership is using their personal phone to exchange texts with a customer Implement a texting process that captures opt-in and opt-out information for consumers, and one that will allow for tracking and follow-up Leverage your current marketing spend by utilizing text-message marketing. This really doesn t cost anything, it creates customer engagement, and it helps measure the effectiveness of your advertising. 16

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