Strategies to Accelerate Dealership Lead Response, Streamline Inventory Movement, and Improve the Online Customer Experience
When a customer walks into a dealership, the experience often begins with a friendly greeting from a representative. It’s a simple but powerful moment that sets the tone for a successful sales relationship. Now, imagine translating that same personalized, immediate care to every lead—online, over the phone, or via text. That’s the challenge dealers and OEMs have faced for years in today’s digital-first landscape.
The shift to online sales and internet shopping has steadily elevated customer expectations. Yet, the industry often falters, prioritizing face-to-face sales over leads that are “out of sight.” This ongoing gap in responsiveness impacts not only dealership performance but also OEM success. Let’s explore the stakes and solutions dealers and OEMs can implement together to create a thriving customer experience ecosystem.
What’s In the Article:
- The High Stakes of Dealer Performance
- Faster Lead Management
- Moving Sluggish Inventory: Turning Challenges into Opportunities
- Strategic Selling: Reducing Friction and Expanding Opportunities
- Collaborating for Success: Building a Strong OEM-Dealer Partnership
Estimated 6-Minute Read
The High Stakes of Dealer Performance
According to the 2024 Pied Piper PSI® Internet Lead Effectiveness® (ILE®) Study, responding to leads within 30 minutes results in 50% more sales than slower responses. Customers expect immediate engagement, and delayed responses often lead them to competitors.
The consequences extend beyond lost sales: inventory stagnates, cash flow tightens, and brand loyalty weakens. OEMs relying on dealer networks also feel the strain as they compete to maintain market share. As Fran O’Hagan noted in Powersports Business, “The speed of engagement often sets the stage for long-term loyalty. If you fail to connect early, you lose the chance to build that trust.”
Responding within one minute boosts conversions by 391%, but after 30 minutes, the odds of qualifying a lead drop by 80%. Despite this, only 7% of companies manage a response within five minutes, creating a significant competitive gap.
To thrive, dealers and OEMs must prioritize a swift, unified response strategy to address follow-up challenges and unlock operational efficiencies.
Faster Lead Management
To bridge this gap, dealers must embrace actionable strategies, including:
- Automation and Personalization Tools: Implement automation at scale, including, but certainly not limited to, automated sales and marketing emails to keep customers engaged, automated lead routing systems that ensure no lead is overlooked, and automated chat or texting solutions. Tools that provide personalized responses can make customers feel valued while waiting for human follow-up.
- Staff Training: Train teams to prioritize quick follow-ups and understand the financial impact of delayed responses.
- Benchmarking and Monitoring: Establish benchmarks for response times and use reporting tools to track performance, fostering accountability and continuous improvement.
- Immediate Call Protocols: Emphasize that calling a lead within five minutes is 21 times more effective than calling after 30 minutes. This small change can dramatically improve conversion rates.
OEM Support
OEMs can strengthen dealer responsiveness by:
- Promoting CRM Platforms: Encourage dealers to adopt robust CRM systems for seamless lead tracking and follow-ups.
- Offering Training Programs: Conduct workshops that teach multi-channel engagement strategies and the importance of swift communication.
- Providing Analytics: Share insights into lead response effectiveness, enabling dealers to refine their approaches.
- Dynamic Lead-Routing Systems: Facilitate systems prioritizing high-value leads, boosting overall engagement rates and conversions.
- Employing Automated Email Tools: Using LeadVenture’s Automated Email Marketing solution ensures shoppers are re-engaged with targeted email marketing at the right time in their buying journey.
Moving Sluggish Inventory: Turning Challenges into Opportunities
The Problem
Unresponsive dealers don’t just lose sales—they create bottlenecks in inventory flow. Stagnant inventory ties up capital, increases storage costs, and erodes profitability. Worse, customers may perceive unsold units as undesirable—leading them to delay purchases or look elsewhere. Research shows that 30% of prospects move to a competitor if not contacted quickly, compounding the challenge.
Dealer Best Practices
Dealers can combat sluggish inventory by:
- Leveraging Targeted Promotions: Drive urgency with time-sensitive rebates and financing offers.
- Implementing Data-Driven Strategies: Use inventory analytics to identify slow-moving products and tailor promotional campaigns.
- Engaging Digital Channels: Market overstocked units through eCatalogs and social media to reach broader audiences.
- Using Personalized Campaigns: Highlight specific units in email marketing and digital ads to reignite customer interest.
OEM Support
OEMs can empower dealers with:
- Data-Driven Pricing Tools: Enable dealers to adjust pricing dynamically based on demand and competition.
- Co-Op Advertising Funds: Support dealer-led campaigns to amplify reach and drive inventory movement.
- Integrated Promotions: Ensure OEM incentives align with dealer efforts to enhance visibility and conversion rates.
Strategic Selling: Reducing Friction and Expanding Opportunities
The Problem
Many dealerships rely on the “milk run” approach, waiting for deals to be delivered rather than proactively pursuing new opportunities. This strategy fosters complacency, focusing on repeat customers or high-ticket items while neglecting untapped markets. Dealers who fail to actively seek new buyers or diversify their sales efforts risk stagnation and missed growth opportunities.
Dealer Best Practices
To overcome challenges, dealerships should adopt a proactive sales strategy that uses CRM data to identify and engage potential buyers outside their current customer base. High-performing dealers focus on making the customer journey smooth and seamless.
To tackle the “milk run” issue, dealers can implement outreach strategies that target new customers while showcasing a diverse product range. This can enhance market share and customer loyalty by simplifying touchpoints and removing barriers, making customers feel valued.
Addressing smaller-ticket items like entry-level units can also help build trust and lasting relationships. By viewing these sales as opportunities instead of burdens, dealerships can create a more balanced revenue stream.
OEM Support
OEMs can play a key role by providing dealers with tailored training programs emphasizing proactive sales strategies and the importance of diverse product lines. Additionally, OEMs can offer market insights to identify untapped customer segments and create promotional materials that appeal to these groups.
For example, integrating small-ticket items into marketing campaigns and showcasing their value in solving customer challenges can drive interest and engagement. By aligning dealer and OEM efforts, the industry can foster a more dynamic and inclusive sales approach that reduces friction and expands growth opportunities.
Collaborating for Success: Building a Strong OEM-Dealer Partnership
The Problem
Dealers and OEMs share common goals but often operate in silos. Misalignment of customer experience strategies leads to inefficiencies and missed opportunities. Without strong partnerships, both parties risk losing market share and customer loyalty.
Dealer Best Practices
To address these challenges, dealers can take the following actionable steps:
- Engage in OEM Training Programs: Proactively seek training sessions provided by OEMs to align efforts with brand expectations and elevate sales strategies.
- Leverage Market Insights: Work with OEMs to access data and insights that help refine local marketing efforts and better target customer preferences.
- Strengthen Follow-Through: Establish internal accountability to meet goals set in collaboration with OEMs, from responding to leads to maintaining consistent customer experiences.
- Build Feedback Loops: Regularly communicate with OEM partners to share frontline customer insights and collaborate on improving sales and service processes.
OEM Support
OEMs must actively support their dealer networks with the following steps:
- Provide Comprehensive Analytics Tools: Equip dealers with platforms that track customer behavior, lead responses, and inventory trends to inform decision-making.
- Facilitate Frequent Collaboration: Host regional meetings, webinars, or forums to share best practices and encourage dealer input.
- Deliver Tailored Resources: Offer region-specific promotional strategies, co-op advertising programs, and dynamic pricing tools to help dealers capture more local customers.
- Emphasize Branding Consistency: Collaborate with dealers to ensure all marketing materials and customer touchpoints reflect unified brand messaging.
A strong OEM-dealer collaboration fosters innovation, ensures consistent customer experiences, and drives measurable sales growth. With years of industry insight, LeadVenture understands the essential components of aligning strategies for mutual success. Dealers and OEMs can create a unified front that delivers results by aligning their strategy and maintaining open communication.
Empower Dealers, Win Together
Dealership and OEM success go hand in hand. By prioritizing speed, collaboration, and innovation, dealers and OEMs can enhance the customer experience, move inventory faster, and capture more market share.
Partnerships with industry leaders like LeadVenture provide dealers and OEMs with cutting-edge tools and insights to thrive in today’s competitive landscape. Leveraging their expertise ensures that every dealership can meet modern challenges head-on.
Now is the time to embrace these best practices and leverage tools that foster collaboration and efficiency. Together, OEMs and dealers can set a new standard for success.
Start dominating the market today with LeadVenture’s comprehensive full suite of digital solutions that support each digital touch point of your shopper’s journey.
Start dominating the market today!
Sources Used in This Article:
- Pied Piper PSI® Internet Lead Effectiveness® (ILE®) Study – 2024 Compact Tractor Industry Report
- “Optimizing Speed to Lead to Drive Revenue Growth” – LeanData
- LeadResponseManagement.org Research Findings on Lead Conversions
- “Reducing the Friction in the Selling Process” – Motorcycle Powersports News
- “Powersports Business Power Hour” Podcast, Responding to Prospective Customers with Fran O’Hagan
- “Powersports Business Power Hour” Podcast, Dealership owners talk about operations and OEM partnerships