When the market is down, sales are declining, and lead volume is lower than normal, how can your dealership respond, not just to maintain a flat line, but to turn around the trend and outsell the national average? What information is available, and what tools exist, to tackle this not-so-uncommon scenario?
When Morrie’s Brooklyn Park Subaru began experiencing a considerable decline in lead volume earlier this year, they were faced with this exact issue.
In addition to a large drop off in leads, their lost sales and defection rates were significantly higher than the national sales trends. They needed a solution to identify the source of all lost sales, and a strategy to reduce the rate of defection to other dealers, while growing their market share in surrounding zip codes.
That solution, was AutoHook’s Traffic Conversion Analysis tool.
Morrie’s Brooklyn Park Subaru used AutoHook’s Traffic Conversion Analysis (TCA) to identify the sources responsible for the highest number of lost opportunities during the 90-day period. TCA is the first ever report that allows dealers to view and compare their own sales data versus the sales they lost, and defection trends to competing stores or brands in their market.
It works by taking a dealership’s CRM data and matching it up against Urban Science’s near real time sales database in order to reveal their greatest opportunities and losses.
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You Can’t Win Without Knowing What You’re Losing
AutoHook leveraged TCA data to analyze the leads already in Morrie’s CRM and pinpointed the largest areas of lost sales by zip code, model, salesperson, lead source, and competing dealers or brands in their market. TCA exposed holes within the dealership’s internal processes and removed the leads that had already purchased elsewhere, helping to eliminate wasted spend and marketing effort.
AutoHook then implemented customized, targeted offers to drive customers into their showroom.
Outcome and Action
TCA was able to identify Morrie’s greatest lost sales opportunities:
- By Dealer
- By Model
- By Lead Source
- By Zip Code
Armed with this information, Morries was able to target underperforming models and zip codes while also targeting the lead provider with the highest defection rate.
By doing so, Morrie’s Brooklyn Park Subaru was able to reverse the trend and effectively increase Outback sales growth, despite Outback sales slowing, both nationally and even more so within their own market,
Even with fewer leads, Morrie’s was able to successfully cut defection by a minimum of 50% in the two zip codes TCA defined as their greatest areas of opportunity.
The results don’t stop here. By increasing their sales of Outbacks by more than 15%, Morries’ exceeded the national average by more than 200% with significantly fewer leads. Morries saw more than a 50% decrease in defection (“Lost Sales”), closing more than 85% of leads, practically a 20% increase from before.
“We have always seen great results using AutoHook Solutions and we were optimistic when signing up for their Traffic Conversion Analysis (TCA) that it would drive results. The tool has provided us with a robust, new lens for which to view our data and has provided actionable insights we’ve simply not seen elsewhere. Despite a 28% reduction in Outback leads, we were able to use TCA data and consult with the AutoHook team to grow Outback sales by 15.7%. Our AutoHook leads closed at 87% during this 90-day window proving that the TCA and AutoHook lead tools are a winning combination.” – Ben Robertaccio | Marketing Director, Morrie’s Automotive Group