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1. Attributes of Dealer Responses
to Sales Leads and their
Correlation, or Impact on
Customer Satisfaction and
Sales Closing Ratios
Prepared by: Ralph PagliaPrepared by: Ralph Paglia
Reynolds Consulting ServicesReynolds Consulting Services
Ralph_Paglia@reyrey.comRalph_Paglia@reyrey.com
505-301-6369505-301-6369
© 2004 The Reynolds and Reynolds Company – All Rights Reserved© 2004 The Reynolds and Reynolds Company – All Rights Reserved

2. Response Time & ContentResponse Time & Content
How “How “WhatWhat” dealers do, and “” dealers do, and “WhenWhen””
they do it, impacts Lead Managementthey do it, impacts Lead Management
Process resultsProcess results
• Timing correlation with SalesTiming correlation with Sales
• Dealer Response AttributesDealer Response Attributes

3. A: Increasing Closing Ratios is notA: Increasing Closing Ratios is not
“Just About”“Just About” Response Times…Response Times…
A: Increasing Closing Ratios is notA: Increasing Closing Ratios is not
“Just About”“Just About” Response Times…Response Times…
Q: Why the variations?Q: Why the variations?Q: Why the variations?Q: Why the variations?

4. Impact of Dealer Response Attributes onImpact of Dealer Response Attributes on Customer SatisfactionCustomer Satisfaction::
Dealer Response Attribute
Experienced by Customer within
24 hours* of Submitting Lead
Completely orCompletely or
Very SatisfiedVery Satisfied
who DID NOTwho DID NOT
experienceexperience
the attributethe attribute
Completely orCompletely or
Very SatisfiedVery Satisfied
who DIDwho DID
Experience theExperience the
attributeattribute
GAPGAP
StatisticalStatistical
CorrelationCorrelation
Factor ofFactor of
attribute withattribute with
CustomerCustomer
SatisfactionSatisfaction
% of ALL% of ALL
RespondentsRespondents
whowho DIDDID
ExperienceExperience
the attributethe attribute
Dealer made Direct Phone ContactDealer made Direct Phone Contact
with Customer after sending Emailwith Customer after sending Email 58%58% 84%84% 26%26% 2929 59%59%
Dealer Acknowledged CustomerDealer Acknowledged Customer
RequestRequest 51%51% 75%75% 24%24% 1212 94%94%
Dealer Showed Genuine InterestDealer Showed Genuine Interest
in Customer’s Wants & Needsin Customer’s Wants & Needs 13%13% 82%82% 69%69% 5353 87%87%
Dealer Responded using Customer’sDealer Responded using Customer’s
Preferred Communication MethodPreferred Communication Method 39%39% 76%76% 37%37% 2121 93%93%
Customer Received Price QuotesCustomer Received Price Quotes
from Dealerfrom Dealer 60%60% 90%90% 30%30% 3434 44%44%
Customer Contacted more than onceCustomer Contacted more than once
by Email and Telephoneby Email and Telephone 61%61% 85%85% 24%24% 2727 49%49%
Dealer Confirmed Availability ofDealer Confirmed Availability of
Vehicle(s) for Sale and DeliveryVehicle(s) for Sale and Delivery 55%55% 89%89% 34%34% 3838 52%52%
*Survey Respondents received Emailed Survey invitations that were sent 24 hours after they had submitted an inquiry (Lead)… 77,000 Surveys Received during Q1, 2003

5. Impact of Dealer Response Attributes onImpact of Dealer Response Attributes on Vehicle PurchaseVehicle Purchase::
Dealer Response Attribute
Experienced by Customer within
24 hours* of Submitting Lead
PurchasePurchase
Respondents*Respondents*
whowho DID NOTDID NOT
experienceexperience
the attributethe attribute
% of Purchase*% of Purchase*
among theamong the
RespondentsRespondents
whowho DIDDID
ExperienceExperience thethe
attributeattribute
GAPGAP
StatisticalStatistical
CorrelationCorrelation
Factor ofFactor of
responseresponse
attribute withattribute with
VehicleVehicle
PurchasePurchase
% of ALL% of ALL
RespondentsRespondents
whowho DIDDID
ExperienceExperience
the attributethe attribute
Dealer made Direct Phone ContactDealer made Direct Phone Contact
with Customer after sending Emailwith Customer after sending Email 17%17% 27%27% 9%9% 1111 59%59%
Dealer Acknowledged Customer RequestDealer Acknowledged Customer Request 21%21% 23%23% 2%2% 11 94%94%
Dealer Showed Genuine Interest inDealer Showed Genuine Interest in
Customer’s Wants & NeedsCustomer’s Wants & Needs 21%21% 23%23% 2%2% 22 87%87%
Dealer Responded using Customer’sDealer Responded using Customer’s
Preferred Communication MethodPreferred Communication Method 21%21% 23%23% 2%2% 11 93%93%
Customer Received Price QuotesCustomer Received Price Quotes
from Dealerfrom Dealer 20%20% 27%27% 8%8% 99 44%44%
Customer Contacted more thanCustomer Contacted more than
once by Email and Telephoneonce by Email and Telephone 21%21% 25%25% 4%4% 55 49%49%
Dealer Confirmed Availability ofDealer Confirmed Availability of
Vehicle(s) for Sales and DeliveryVehicle(s) for Sales and Delivery 22%22% 24%24% 3%3% 33 52%52%
*Survey Respondents who Purchased a Vehicle were identified via RDR data cross reference and match, Surveys sent 24 hours after lead submitted, sales tracked 90 days

6. Top 4
Ways to
Close
More
Sales to
Leads
Received
Dealer Response Attribute
Experienced by Customer
within 24 hours of
Submitting a Web based
Inquiry (Lead)
PurchasePurchase
RespondenResponden
ts* whots* who
DID NOTDID NOT
experienceexperience
thethe
attributeattribute
% of% of
Purchase*Purchase*
among theamong the
Leads whoLeads who
DIDDID
ExperienceExperience
the attributethe attribute
StatisticalStatistical
CorrelationCorrelation
Factor ofFactor of
ResponseResponse
attributeattribute
withwith
VehicleVehicle
PurchasePurchase
#1#1 Make Direct Phone Contact with CustomerMake Direct Phone Contact with Customer
(after sending Email w/availability & prices)(after sending Email w/availability & prices) 17%17% 27%27% 1111
#2#2 Send Price Quotes by Email to CustomerSend Price Quotes by Email to Customer 20%20% 27%27% 99
#3#3 Contact Customer more than once byContact Customer more than once by
EmailEmail andand TelephoneTelephone (within First 24 Hours)(within First 24 Hours) 21%21% 25%25% 55
#4#4 Make sure Customers are eitherMake sure Customers are either CompletelyCompletely oror
Very SatisfiedVery Satisfied with the Lead Responsewith the Lead Response 21%21% 24%24% 33
Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
RCS Marketing research (Q1, 2003) confirms the Best Practices collectedRCS Marketing research (Q1, 2003) confirms the Best Practices collected
during “Best In Class” Dealer Benchmark studies.during “Best In Class” Dealer Benchmark studies.
How to sell more vehicles to customers that submit Internet leads…How to sell more vehicles to customers that submit Internet leads…
Without relying on opinion or seat of the pants management!Without relying on opinion or seat of the pants management!
RCS Marketing research (Q1, 2003) confirms the Best Practices collectedRCS Marketing research (Q1, 2003) confirms the Best Practices collected
during “Best In Class” Dealer Benchmark studies.during “Best In Class” Dealer Benchmark studies.
How to sell more vehicles to customers that submit Internet leads…How to sell more vehicles to customers that submit Internet leads…
Without relying on opinion or seat of the pants management!Without relying on opinion or seat of the pants management!
ProvenProven
BestBest
PracticesPractices
ProvenProven
BestBest
PracticesPractices

7. 85% of Internet Leads are submitted85% of Internet Leads are submitted
by car buyers who submit ONE requestby car buyers who submit ONE request
to ONE dealer of that brand*…to ONE dealer of that brand*…
40% of Internet Leads are submitted by people40% of Internet Leads are submitted by people
who submit ADDITIONAL requests to otherwho submit ADDITIONAL requests to other
dealers of a different brand…dealers of a different brand…
On a different make and model vehicleOn a different make and model vehicle.*.*
•*Morpace Research/MSN Auto Dealer Lead Referrals; Lead Data Cross-Referencing Analysis – 88,000+ Leads, 2003
Let’s take a closer look at the factsLet’s take a closer look at the facts
RE: The myth that dealers are competing
with other dealers of the same brand
when they get an Internet Lead…

8. OEM supplied leads purchased that brandOEM supplied leads purchased that brand
of Vehicle at a 21% “Brand Close Rate” in 2002of Vehicle at a 21% “Brand Close Rate” in 2002
OEM supplied leads purchased that brandOEM supplied leads purchased that brand
of Vehicle at a 19% “Brand Close Rate” in 2003of Vehicle at a 19% “Brand Close Rate” in 2003
80% of Dealers are performing at less than80% of Dealers are performing at less than
a 12% closing ratio on leads from their OEMa 12% closing ratio on leads from their OEM
10% of Dealers are performing at more than a10% of Dealers are performing at more than a
20% closing ratio on leads from their OEM20% closing ratio on leads from their OEM
• J.D. Power PIN/OEM Joint Research; Lead Data Cross-Referencing Analysis – 350,000+ Leads, 2003
Let’s take a closer look at the factsLet’s take a closer look at the facts
RE: The myth of dealer lead closing ratios
around 12% being considered acceptable

9. The average number of leads submittedThe average number of leads submitted
by new vehicle buyers in 2002 was 1.43by new vehicle buyers in 2002 was 1.43
The average number of leads submittedThe average number of leads submitted
by new vehicle buyers in 2003 was 1.36by new vehicle buyers in 2003 was 1.36
The average number of leads submittedThe average number of leads submitted
by new vehicle buyers in 2004 is 1.33 YTDby new vehicle buyers in 2004 is 1.33 YTD
•*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 1,500,000+ Leads, 2003
Let’s take a closer look at the factsLet’s take a closer look at the facts
RE: The myth of the Internet Shopper
submitting leads to dozens of dealers

10. On a model line basis, OEM suppliedOn a model line basis, OEM supplied
Internet Leads generate a $23 higher grossInternet Leads generate a $23 higher gross
profit per unit sold than average PNVRprofit per unit sold than average PNVR
Dealers who compare their Internet Sales Gross ProfitDealers who compare their Internet Sales Gross Profit
PVR with the dealership’s aggregate Gross PVR get aPVR with the dealership’s aggregate Gross PVR get a
distorted number because of the difference in model mixdistorted number because of the difference in model mix
of the sales being compared. Typical overall store salesof the sales being compared. Typical overall store sales
include a higher percentage of High Demand modelsinclude a higher percentage of High Demand models
than the model mix of Internet Salesthan the model mix of Internet Sales
•*Major OEM Data Tracking Research; Lead Data Cross-Referencing Analysis – 2003
Let’s take a closer look at the factsLet’s take a closer look at the facts
RE: The myth that Internet leads
generate less profitable sales results

11. ““Email Overload”Email Overload”
When customers receive emails that doWhen customers receive emails that do
not deliver value, they follow their ownnot deliver value, they follow their own
“Three Step Process”:“Three Step Process”:
1.1. Delete itDelete it
2.2. Do not respondDo not respond
3.3. Future emails from same dealer areFuture emails from same dealer are
deleted without being openeddeleted without being opened

12. The Science of using Email
Templates for improved
direct contact ratios
and sales results

13. Offer alternatives
Provide value-added
content
Be conversational – (“smile”)
Be clear and to the point
Create desire for direct contact with sender
Convey sense of urgency
Give reasons to choose dealership
Ask for appointment - logically
Setup choice close
Science of Effective Email TemplatesScience of Effective Email Templates
Results-BasedResults-Based
LeadLead
ManagementManagement
ProcessProcess
Results-BasedResults-Based
LeadLead
ManagementManagement
ProcessProcess
Ensure professional content
Confirm availability
Quote price
Setup follow-up call
Offer Product Presentation
Manage customer expectations

14. Offer alternatives
Provide value-added content
Be conversational – (“smile”)
Be clear and to the point
Create desire
Create sense of urgency
Give reasons to choose dealership
Ask for appointment - logically
Setup choice close
Ensure professional content
Confirm availability
Quote price
Setup follow-up call
Manage customer expectations
Science of Effective Email TemplatesScience of Effective Email Templates
Offer Product Presentation
ProvenProven
BestBest
PracticesPractices
ProvenProven
BestBest
PracticesPractices

15. 2.2%1.9%
7.3%
30.0%
22.4%
15.3%
9.0%
12.0%
13 or
More
Weeks
9 to 12
Weeks
5 to 8
Weeks
3 to 4
Weeks
1 Day to
2 Weeks
1 Day to
1 Week
2 Weeks 3 or
More
Weeks
Before Visiting First DealerBefore Visiting First Dealer After Visiting First DealerAfter Visiting First Dealer
89% of Internet Users Go Online Before Visiting a dealership89% of Internet Users Go Online Before Visiting a dealership
59% Go Online 3 weeks or more before visiting a dealership59% Go Online 3 weeks or more before visiting a dealership
Based to IUs
When do Vehicle Shoppers First Go Online?When do Vehicle Shoppers First Go Online?

16. Do Dealer web sites generate showroom traffic and pre-visit phone calls…
In addition to the Internet leads we’ve come to expect?
1
Based to total respondents
2
Based to those respondents who pre-contacted dealer by telephone or e-mail.
Multiple responses allowed.
79%
21%
All Internet Users (IU) Who Visited Dealer
after visiting Dealer or OEM Web Site
YES¹
Pre-Showroom Visit Dealer Contact1
Contact Method2
39%
85%
Email²
Phone²
Dealers May Not Realize the LeadDealers May Not Realize the Lead
Originated from Online Marketing…Originated from Online Marketing…
Direct Showroom Visit1

17. Telephone ProcessTelephone Process
• 85% of Web visitors who contact the dealership85% of Web visitors who contact the dealership
before coming in, use the phonebefore coming in, use the phone
• Direct Phone contact after responding to anDirect Phone contact after responding to an
Internet lead by email has the greatest impact onInternet lead by email has the greatest impact on
increasing sales closing ratiosincreasing sales closing ratios
RCS Phone Strategy:RCS Phone Strategy:
• Focus on having a set of objectives in front of us,Focus on having a set of objectives in front of us,
each time we make an email follow-up calleach time we make an email follow-up call
• Word Track Forms (scripts) are used for trainingWord Track Forms (scripts) are used for training
and collecting customer information during eachand collecting customer information during each
call that is made immediately after sendingcall that is made immediately after sending
personalized email responsepersonalized email response

18. Vehicle Shopper Behavioral ProfilesVehicle Shopper Behavioral Profiles¹¹
1
Profile Index of 100 equates to the industry average
Internet Users
(IU)
Non-Internet
Shoppers (NIS)
Non-Internet
Users (NIU)
Time Investors 137 37 50
Product Experts 113 76 85
Price Sensitive 112 73 91
Dealerphobes 112 89 74
Empowered
Negotiators
100 96 103
Which types of Vehicle Shoppers Go Online first?Which types of Vehicle Shoppers Go Online first?

19. Internet's Impact Decisions of Internet Users
40%
54%
47% 47%
50%
41%
47%
35%
40%
43%
20%
30%
40%
50%
60%
Experts Time Investors Empowered
Negotiators*
Dealerphobes* Price Sensitive*
Psychographic Profiles
%"BigImpact"
How much to pay Make/model puch
Experts are Influenced the Least, Time Investors the MostExperts are Influenced the Least, Time Investors the Most
¹ Based to IUs
* Small sample
Behavioral Profiles¹

20. Internet's Impact on Decisions of IUs
49%
44% 46%
38% 38%
42%
32%
39%
29% 31%
13%
11%
15%
13% 11%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
Time Investors Dealerphobes Experts* Price Sensitive* Empowered
Negotiators*
Psychographic Profiles
%"BigImpact"
How much to pay Make/model puch Dealer purch from
Segments Most Influenced by Online InformationSegments Most Influenced by Online Information
Based to IUs
* Small sample

21. Submitting Purchase Requests
26%
33%
24%
29%
21%
0%
10%
20%
30%
40%
Time Investors Dealerphobes Experts* Price Sensitive* Empowered
Negotiators*
Psychographic Profiles
%SubmittedPurchaseRequest
Submitted Online Request
33%
26%
24 %
29%
21%
Who Submits Online Information Requests?Who Submits Online Information Requests?
Based to All IUs
* Small sample

22. Dealer ROI for eBusinessDealer ROI for eBusiness
Requires Managed FocusRequires Managed Focus
1.1. Dedicated People who are held AccountableDedicated People who are held Accountable
for measurable results that are trackedfor measurable results that are tracked
2.2. Documented Processes that clearly identifyDocumented Processes that clearly identify
the minimum tasks that must be executedthe minimum tasks that must be executed
3.3. Performance Metrics that supply the dealerPerformance Metrics that supply the dealer
with execution compliance measurementwith execution compliance measurement
4.4. Coaching & Mentoring from experiencedCoaching & Mentoring from experienced
sources of results-based eBusinesssources of results-based eBusiness
knowledge regarding effective processesknowledge regarding effective processes

23. Reynolds Consulting ServicesReynolds Consulting Services
Lead Management ProcessLead Management Process
DevelopmentDevelopment
ImplementationImplementation
Metrics AnalysisMetrics Analysis
Targeted Results Program DesignTargeted Results Program Design
Continuous ImprovementContinuous Improvement
Process MaintenanceProcess Maintenance
Process RepairsProcess Repairs
Seminar ServicesSeminar Services
In-Dealership ServicesIn-Dealership Services
OEM Consulting ServicesOEM Consulting Services