Lead defection is a frustrating problem for dealers, resulting in wasted money, time and effort. However, while retailers have historically had few remedies at their disposal, the proliferation of artificial intelligence has opened new doorways to potential solutions.
To learn more about lead defection, CBT News anchor Jim Fitzpatrick met with Eric DeMont, global product director at Urban Science, at this year’s Digital Dealer conference. Urban Science is a platform that provides critical data insights for retailers to leverage in their marketing strategies. As an expert in analytics, artificial intelligence and data science, DeMont has been behind many of the products that businesses depend on to manage their customer information.
1. During the Digital Dealer conference, the lead defection rate across the U.S. automotive industry was 16.4%. This means that 16.4% of all leads in a dealer’s CRM had already purchased a vehicle elsewhere. This level has remained consistent for several years regardless of brand or segment.
2. There are multiple factors that contribute to lead defection. Collecting insights on customers and categorizing data are crucial methods to improve customer retention.
3. Urban Science is currently developing industry-first tools that will not only identify leads but will also predict which leads are likely to defect, allowing dealers to narrow their marketing and re-engage customers. These services will be available for $299 a month per rooftop.
"With this insight, the dealer can stop spamming consumers who already purchased elsewhere, focus on the lifetime value of that consumer and drop them into a campaign for service...we've got to think about this as a long-term relationship and not just how you're trying to close that one deal." — Eric DeMont