Phone Sales Increase at Dealerships

Something interesting is going on in auto retailing right now. It’s as if phones are the new Internet.

Direct calls to dealerships from interested car buyers are climbing quickly, while e-leads are maintaining a baseline level. Why would this phone activity be happening?

Smartphone ownership is growing. It’s changed the game. When a technology reaches a tipping point, it affects buying behavior.

Just like consumers are physically shopping for fewer dealerships (sometimes just one store before they buy), they’re now e-shopping fewer auto dealerships.

Having a smartphone in hand allows buyers, no matter where they are, complete access to inventory listings and more. They don’t have to call or visit to find this out.

But the big question remains: Why are consumers calling on the phone again more than they’re submitting Internet leads?

One reason could be their impatience with the 3-hour Internet response time of dealerships in comparison with other types of businesses like Amazon, BestBuy.com and the like where purchases are processed within seconds and delivery is set up within a minute.

Perhaps having the information that a consumer needs to begin choosing a dealership and having that data in their hand means the only step left is to make sure someone is waiting for them at the dealership.

Some consumers are just using the phone to verify that, when they show up, someone can show them the car they’re interested in. Or they’re calling to verify it’s actually on the lot.

Are they also calling from another dealership? Sometimes.

Consumers today cross-pollinate their shopping habits from one category to the next.

Real estate agents will tell you how the consumer chooses house inventory, then calls to arrange a tour of that inventory. But the entire time consumers stay in control of what they want to see.

I regularly secret-shop client dealerships to see how they handle live phone calls.

I want to see how long I am put on hold, if vehicle information is available quickly, if the person on the other end is able to maintain a charming, pleasant and warm conversation. Most times, they do a fine job. But there still are misses.

Managers of business development centers report the average sales professional is able to handle a rolling average of about 150 leads per month. This means they may be processing 75 new leads from the current month while also handling another 75 up to 150 leads from the prior two months.

If a sales professional is overwhelmed with ongoing conversations with current buyers, it makes it difficult to manage new calls.

A common choking point is the ability to juggle both current and new leads.

A way to take advantage of the rising number of phone calls is to immediately assess your phone-training program and hire professionals from similar industries with needed skills.

Some people who are skilled at problem-solving and phone negotiations come from the hotel and telecommunications sectors. I know of dealers who prefer to hire female BDC representatives due to their ability to show empathy and patience.

We should analyze our phone operations, including the number of people able to take live phone calls, the ability of our sales force to sell appointments and the overall phone skills of our sales team.

These are things to consider as today’s consumer expects faster service and full attention from your sales force.

Adam Armbruster is a senior partner in the business growth firm Eckstein, Summers, Armbruster & Company located in Red Bank, New Jersey and can be reached at 941-928-7192.