12:00 pm, October 9, 2024
As new and used car sales continue to grow across the UK, inbound dealership inquiries are on the rise but consumers with high expectations are often met with slow and generic responses that start the car-buying process off on a bad note.
Dealers are hard-pressed to meet these challenges as they attempt to address multiple industry headwinds, all while the car buyer’s journey becomes increasingly complex.
With shoppers expecting instant, personalised responses across more communication channels than ever, dealers simply don’t have the resources to keep up.
While dealers often employ automation or outside resources like scripted chatbots, auto-responders, or contact centres, they simply aren’t up to the task and often cause even more customer dissatisfaction.
As a result, more leads are slipping through the cracks, and dealers are ultimately missing out on significant revenue opportunities.
Impel conducted a study surveying 200 car dealers across the UK to help identify the specific communication and lead management barriers between car shoppers and dealers.
As part of the study, they submitted three simple questions on AutoTrader and dealership websites directly:
- Does this car come with Apple CarPlay?
- Do you offer home delivery?
- Are you open to negotiations?
The responses were revealing. 10% of dealers didn’t respond at all. But more importantly, dealers that did respond took an average of 90 minutes to reply, typically only answering one of the three questions. In most cases, responses were generic and left shoppers still searching for answers.
The majority of dealers did not continue to follow up with leads after the initial enquiry, highlighting a broader gap in long-term lead nurturing within the industry.
The research found that leads were marked closed as quickly as two days, even though the average car sales cycle can last upwards of 50 days. This helps explain why dealers’ 30, 60, or 90-day close ratios are often well under 10%, despite ample opportunity for long-term re-engagement.
Because most dealers do not have capacity to nurture and follow up on leads, they’re not fully maximising the ROI of their lead generation efforts.
A complex obstacle that can’t be solved by humans alone
The study revealed a clear, yet complex obstacle between shoppers and dealers. Not only is there a glaring lack of resources to engage and follow up with every lead, but of equal importance, a lack of insights to determine which leads to prioritise.
The findings present an incredible differentiation opportunity for dealers who take action to close this gap. Another recent Impel study found that dealers who respond quickly and thoroughly to consumers win eight times more deals!
With the introduction of conversational AI into automotive retail, dealers are starting to make this a reality.
Bridging the divide with artificial intelligence
Dealerships in the UK are turning to Impel AI to get a better handle on lead management without increasing headcount.
Because Impel is purpose-built for automotive retail and trained on hundreds of millions of automotive customer interactions, it drives customers and leads toward successful business outcomes that matter to dealerships: live calls, showroom appointments, service appointments, and customer loyalty.
Impel qualifies leads and increases the lead-to-appointment ratio by answering the routine yet crucial questions customers want answers to before visiting the showroom.
Because Impel AI integrates seamlessly with dealer DMS and CRM platforms, it can answer even the most complex VIN-specific questions and financing or part exchange inquiries.
Impel goes beyond initial lead engagement and follows up with every lead for two months. The benefits of long-term follow-up go beyond increased lead-to-appointment ratios – it drives sales productivity by ensuring reps are focusing their attention on high-intent buyers.
When automotive sales reps start using Impel AI, they shift from menial tasks like answering repetitive questions and chasing low-intent leads to more fulfilling and impactful work, such as building relationships, nurturing high-intent prospects, closing deals, and securing referrals.
To meet growing customer expectations, flourish despite market fluctuations, and deliver exceptional customer engagement at scale, dealers need the help that only Automotive AI can provide.
Adopting AI amplifies sales and service team productivity, enabling them to be more efficient and deliver greater results.
Visit the Impel website to explore the AI platform that boosts customer engagement by 36%, and increases showroom appointment set rates by up to 50%.
