The trade-in remains the most challenging part of the car buying process, despite the fact that it's the first and most important step for millions of consumers. The end result is an unacceptably low 12% closing ratio for our industry, due in large part to an unsatisfying customer experience.
AUSTIN, Texas (PRWEB) February 13, 2020
The Appraisal Lane has released a new white paper that explores challenges with automotive lead generation today. The study highlights the obstacles that exist along the path to purchase, the associated costs to our industry, and actionable tips to help dealers and manufacturers improve customer engagement.
The white paper, "Lead Quantity vs. Quality: Don’t Get Lost in the Numbers" (https://get.theappraisallane.com/lead-quantity-vs-quality/) addresses the automotive industry's unsustainable closing ratio and the expenses that come with processing bad leads, including personnel costs, lost profits, holding costs, and the negative financial impact of dissatisfied customers and employees.
The study also challenges the manner in which automotive leads are generated and qualified, citing the importance of deeper engagement with trade-in customers – an overwhelming majority (or 65%1) of the people who buy replacement vehicles each year.
"For the past 25 years, we've relied on technology to drive consumers into lead forms, largely ignoring their wants and needs when buying a vehicle," said Jeff Risner, Co-founder and CEO of The Appraisal Lane. "The trade-in remains the most challenging part of the car buying process, despite the fact that it's the first and most important step for millions of consumers. The end result is an unacceptably low 12% closing ratio for our industry, due in large part to an unsatisfying customer experience. It's time to capitalize on the remaining 88% of lost sales opportunities by engaging with car buyers in deeper, more meaningful ways."
In addition to important industry statistics and consumer data, the white paper offers actionable tips to help dealers and OEMs:
● Engage in a meaningful two-way dialogue with consumers at the start of the car buying process to increase the likelihood that they’ll visit your dealership by three times the industry average2.
● Provide a vastly improved trade-in experience to offset consumer defection to other brands and dealerships by as much as 60%3.
● Improve CSI and create automotive customers for life, valued at over $50,000 after factoring in the potential revenue from referral business4.
To download "Lead Quantity vs. Quality: Don’t Get Lost in the Numbers," visit https://get.theappraisallane.com/lead-quantity-vs-quality/.
1 NADA Data (2018 Annual)
2 Digital Airstrike (2018)
3 Salesforce (2018)
4 The Appraisal Lane and Black Book ACLV Study (November 2019)
About The Appraisal Lane™
The Appraisal Lane is a mobile app-based community of expert appraisers who put guaranteed cash offers on used cars. Dealers use The Appraisal Lane to manage, move, and source inventory. Consumers use The Appraisal Lane to connect with live appraisal experts in real time, answer simple vehicle condition questions, upload pictures, and get an offer for their used car in minutes. Since its launch in 2016, The Appraisal Lane has delivered more than $2.5 billion in offers on used vehicles. For more information, visit TheAppraisalLane.com.