The Ultimate Price of Unanswered Messages
Unanswered messages can be a serious issue.
When a customer sends in a message, they want to get a prompt and informative answer back. Waiting for hours (or days) to respond could lead to losing business you would otherwise have. That might sound a bit hyperbolic but it’s true and we’ll be sharing the metrics that prove it.
However, it’s also important to be aware of why messages might go unanswered in some cases. Once you know the reasons and work to eliminate them – your dealership will have a much better chance of reaching customers where they are and turning them into profit that you can count on at the end of the year.
It all boils down to data and metrics.
Having data about the latest research is a good way to get started on making sure you’re handling business the way customers expect you to be. Through deep research from experts at PSX Digital and dealers themselves, we’ll share the metrics you need to be aware of as someone in the industry.
The first thing to be aware of is that unanswered messages matter. Not responding to someone (or several individuals) will have an undisputed effect on your monthly gross profit and the dollars you bring into the business.
On average, about nine inbound messages from customers each day do not get answered by a salesperson within 24 hours. It can take as long as 72 hours in some cases.
This is far too long. Most customers who are contacting you want to get things done fast. They don’t want to sit around and wait for days until someone answers them. In most cases, a customer will have visited a dealership within 21 hours of sending that message out.
If you aren’t the one who answered it, they’ll be visiting a competitor who did respond promptly.
Let’s talk about lead to show rate. This number was at 17% in 2017 and by the beginning of 2021 has risen to 23%. But this isn’t where things stand now. By the end of 2021, the number had jumped even more to 32%. It’s essential to answer messages and do it quickly to improve your profits. When you add in a 40% close ratio, you can see how essential this process is.
As time goes on and people are increasingly online, more people start the purchasing process outside of a showroom. When you meet them where they are and communicate quickly, more people are going to visit and make a purchase.
Using the metrics we’ve already mentioned, the amount of money you could be losing out on due to unanswered messages could be huge. Of those nine unanswered messages, four of those customers may have come in and became a sale. This could be a loss of $51,000 a month in gross profits.
This is a massive potential turnaround. If you aren’t getting the sales, someone else is. Not making changes to ensure customer satisfaction means you don’t get that revenue. Looking at your lead to show rate can tell you whether you need to make some changes. If you do, it’s time to find solutions like the software by PSX Digital.