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CASE STUDY
What do sub-par providers cost your dealership’s bottom line?
The report shows how ActivEngage’s digital engagement solution increased revenue and enhanced customer experience for Prime Automotive compared to the previous provider in 2020.
The Challenge
A report on Customer Service Experience in 2020 shows 68% of people increased online purchasing during the pandemic and plan to continue that trend.
Additionally, 73% said they’d switch to a competitor after only one bad experience.
Prime Automotive knew these findings meant they had to assess their customer experience as well as other dealership processes to stay on top.
The Idea
Prime’s new management sought a more human experience and that’s where ActivEngage comes in.
They decided to complete a 90-day, three dealership pilot with an in-depth comparison of vendor performance between ActivEngage and their previous provider.
By switching a few dealerships to ActivEngage services for a measured time, Prime could closely monitor performance without disrupting processes group-wide.
The Solution
The ActivEngage solution combined three vital engagement services, which include:
managed messaging, inline messaging, & concierge service scheduling. These products streamline the digital customer experience and provide quick, personable, & convenient service.
managed messaging, inline messaging, & concierge service scheduling. These products streamline the digital customer experience and provide quick, personable, & convenient service.
Managed messaging from ActivEngage offers award-winning, 24/7 support from highly-trained and friendly Customer Engagement Experts (CEEs). This service is the perfect extension of Prime’s in-store experience, especially when coupled with dealership-specific guidelines.
Inline messaging ensures shoppers are never more than a click away from CEEs specially equipped to nudge the shopper towards the sale. We’ve also found these embedded, lead-enhancing CTAs attract about 20% of the total clicks making them a hot button for interested car buyers.
Concierge service scheduling gives service staff time to focus on crucial on-site work and bettering the in-store experience. Plus, ActivEngage has BDC-level access to xTime, which is Prime’s current service scheduler and makes the process painless for everyone.
The impact
Through this evaluation, we calculated that by using their current provider, Prime lost close to 6 million in profit and over 69 million in revenue throughout 2020 alone. ActivEngage based these numbers on the difference in sales chat-to-lead conversion.
It was found that ActivEngage’s quality conversations and engagement strategy result in roughly 167% more sales leads. Those additional conversions equate to nearly 67% more vehicle sales throughout the year.
82%
Average Sales Chat-to-Lead Conversion
Previous Provider
49%
Average Sales Chat-to-Lead Conversion
Sales Show Rate Lift
In addition to the increase in cars Prime could have sold, ActivEngage’s average sales appointment show rate across the pilot dealerships was an impressive 34%.
The industry average is only 20%. The lift shows a helpful conversation increases commitment and the likelihood for shoppers to follow through.
By switching a few dealerships to ActivEngage services for a measured time, Prime can closely monitor performance without disrupting processes group-wide.
167%
More Lead Conversion with ActivEngage Services.
Sales Chat-to-Lead Conversion
Average Monthly Comparison
Store #1
Previous Provider
Store #2
Previous Provider
Store #3
Previous Provider
Results Forecast
Based on the results over the 90-day pilot and average conversion rates of each provider, respectively, we created a YTD comparison. The comparison shows the results Prime would have seen if ActivEngage handled all sales chats group-wide.
*Prime would have received
67% More Chat Based / Internet Car Sales
in 2020 by using ActivEngage Messaging Services.
*Percentages were rounded to the nearest whole number. SALES ASSUMPTIONS: Performance metrics collected from September 2020 – January 2021. Sales projections based on 30 locations, average revenue of $30,000, average gross profit of $0,000 per unit, average industry close rate of 15%.
