The following article that I authored was featured yesterday in the Dealer Digest Daily enewsletter.  It’s pretty basic stuff that most readers of this blog, by definition, already understand.  I decided to post it here, though, because so many sales people who are successful with chat have to occasionally re-justify it to their GM or GSM.  Hopefully the following succint points will prove helpful for those that find themselves in that position…

The bottom line is that 2009 is the year of chat.  If your dealership isn’t yet utilizing this powerful and inexpensive tool, the time to begin is now. If you’re not convinced, here are three reasons that should convince you!

Consumers Love It
It’s common knowledge that college kids and teenagers prefer text messaging, but did you know that the demographic most likely to contact an auto dealership via chat is a middle-class professional shopping for their next vehicle while sitting at their work desk?  Chat is better than a phone call because it is discreet (i.e. it can be accomplished from work without bringing attention to oneself), better than email because it is conversational and instant, and visual with indicators that clearly show when a dealership has someone available to answer questions (or not).

Dealer Tools Have Improved Markedly
Early implementations of chat required the use of an outside call center to answer leads – often because of technology limitations (i.e. the tools were too hard for dealers to learn and use).  Today’s tools are easy and convenient to use.  The evidence is that thousands are using chat to sell more cars today.  

Third Party Sites Have Embraced Chat
Recently Cars.com announced DealerChat, a feature now available at no additional charge to all Cars.com advertisers.  Cox Auto Trader’s Automart.com and CarShopSmart.com bundle chat too, as do over 50 other third party sites including many local newspaper sites.  This is significant because most shoppers start their search on third party sites and will chat with the dealers they find there.

One of the reasons so many car shoppers use chat to contact a dealership is the fact that chat is discreet - that is, chat allows them to communicate with the dealership without drawing attention to themselves. 

Looking at dealer weblogs one can quickly see that many shoppers do their browsing while at work.  It follows that, when at work, people are hesistant to call the dealership or be called because a phone call will likely draw attention and expose the fact that one is car shopping instead of working. 

Chat, on the otherhand, is just as discreet as browsing.  A shopper can get their questions answered and schedule a test drive appointment without drawing any attention to themselves.  Check out the following chat conversation transcript which is an actual conversation. 

Key tip - It never hurts to ask for a phone number but don’t be surprised if shoppers contacting you via chat are at work and unable to get on the phone.  Go ahead and close on the appointment or appropriate next step via chat.

Actual Dealer Chat Transcript

CHICAGO — Cars.com announced Wednesday that it is offering a free Webinar to discuss how dealers can reach more ready-to-buy shoppers and increase sales with online chat.

The free, hour-long event, “Chat Up Your Inventory: Leverage Chat to Reach In-Market Shoppers and Win the Sale,” begins at noon EST on Feb. 13.

“As car buyers near the time of purchase, they essentially have two questions about a vehicle they’re considering: ‘Does its condition match the description?’ and ‘Is it still available?’” noted Kathy Kimmel, Cars.com manager of automotive consulting and dealer training.

“Many of these same customers, though, prefer to get this information through online chat rather than an e-mail or a phone call. Dealers who can build rapport and earn the prospect’s trust during the session increase their odds of winning the deal,” she added.

Kimmel, who has more than 15 years of automotive industry experience, will lead the session. She will be joined by panelists Steven Golding, of Bay Family of Fine Cars in Panama City, Fla.; Andre Johnson, of Rothrock Chevrolet Lotus in Springfield, Pa.; and Ed Parkinson, of ContactAtOnce.

Attendees will receive tips on how to:

-Use chat as part of their Internet sales process.

-Answer shoppers’ questions.

-Build relationships to obtain car buyers’ name and contact information.

-Encourage shoppers to set and keep an appointment.

-Follow up with prospects until they buy a car.

Cars.com launched DealerChat last month at the annual NADA Convention & Expo. The functionality is available at no additional cost for franchise and independent dealers using a Cars.com advertising package. Dealerships interested in adding DealerChat should contact their Cars.com sales representative.

“Since we began our pilot program in December, more than 2,500 Cars.com customers have implemented DealerChat with their online listings,” Kimmel said. “Not only have we heard great stories about how many vehicles they’ve sold, but dealers also tell us that e-mail and phone inquiries remain steady.”

Dealers interested in attending the Webinar can visit http://dealers.cars.com/live, where they can register or view archived recordings of past events.

I was sitting at my desk trying to find contact information for a bill company I use.  Searching, searching, searching, I find that they offer an email but no phone number.  What does this say to site visitors?  We like you but don’t really want to talk to you? 

When I visit a site the first thing I look for is contact methods, how many times it’s posted, information, and terms.  Companies tend to hide the terms and contact methods but are willing to offer all kinds of other information.  Doesn’t make sense.  If I can’t communicate with you and know you will be there I don’t want to do business with you. 

I remember a few years back my friend paid for an attorney.  The guy was the most difficult guy to get in touch with.  He would leave messages and emails all day and would not get answers for weeks.  The attorney didn’t “get it” - if you are offering a service, show people how easy and convenient it will be to do business with you. 

If you are not in sales but are a support site this could be even bigger for you because your phones ring off the hook.  Start pushing people to chat and you can handle 3 or 4 chats at a time and not have people waiting on hold for long periods of time. 

Dealerships…I can’t tell you how many dealers I call every day.  I can tell you, however, that every day I call a dealer who is having problems with their phones or it just rings or I am put on hold and sit there forever.  I can promise you that the only people waiting that long are the people that are trying to sell you something. 

Chat can solve so many problems but in the big picture it is a reassurance.  Mr. Site Visitor we welcome your questions and would be glad to assist you today.  Better yet, after you buy the car, you can still chat with me when you need new floor mats or that missing key cut.  That makes a lot of sense.  That is convenience!

Please take your time and research chat, think about all the different ways you could utilize chat on your site.  Not only will your team like it but the site visitors attitude will change completely.  I see it every day.