Why Are Car Dealers Failing to Turn Leads into Sales?

Motor traders are not turning leads into actual sales because they are not collecting data on customers. This may be partly due to new legislation like GDPR, which means that data has to be collected and handled in a responsible way.

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Although they may already have data on customers, it may not be getting shared where it needs to be across the business. It may not be getting exchanged between sales and after-sales departments, for example, leading to lost opportunities to upsell other products.

Collecting Data

GDPR has led to a good deal of confusion about how data can be collected and used. While it’s important to obtain the customer’s permission, there is no reason why you shouldn’t record customer data.

Many motor dealers, though, fail on even the basics of keeping showroom logs of customers who have phoned or called in. Without this information it becomes impossible to follow up and close the sale.

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Using Technology

Often there’s a lack of understanding of how technology can help. Dealers might be keen to use sites like https://www.quotemetoday.co.uk/motor-trade-insurance/ to get a good deal on their motor trade insurance, but they are failing to exploit tools like customer relationship management (CRM) systems to keep in touch with their customers.

Even if these systems are in place, often sales staff are not trained to use them properly and therefore don’t gain the full benefits from the technology. By linking sales and after-sales data it’s possible to see vehicle mileages and whether or not a service plan is in place. This allows sales staff to target customers who are reaching the end of their service plan or warranty or who are coming up to a major costly service as prospects for trading up to a newer vehicle.

Of course, this works on the service side too: it’s possible to send reminders for when a service or MOT test is due, lessening the chance of customers taking their business elsewhere.

Partly this is a management issue. If tools are in place but they are not being utilised effectively, then there needs to be a review of best practice and of training. Times are hard for the motor industry at the moment, so anything that can give dealers a competitive edge is worth pursuing.

Author: Kei Taylor

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