How many leads can an Internet Manager handle, effectively?

[ddavis]

I responded to a post that raised this question. I was looking at some data, that dates back a few years. It is dated, and I would like to know what some of the DealerRefresh people think. It makes some assumptions, that many might feel are unrealistic but it addresses the growing workload of an ISM as he enters into the Internet department, with a low (80) lead count. Please challenge the assumptions as I really would like to see some input. In the past, I have based my staffing on this logic. We worked cradle to grave and all Internet phone calls coming to ISMs.

New ISM – Month First Month
Assumptions:

• 80 New Leads
• 15% are Bad
• 10% are Sold

If we make contact once every 3 days, this requires 22 phone calls per day with 25 working days. 61 Leads will carry over to the next month.

New ISM – Month #2
Assumptions:

• 80 New Leads
• 15% are Bad
• 10% are Sold
• 61 Carry Overs (25% Buy elsewhere, 5% Sold, 20% No Response)

If we make contact once every 3 days, this requires 43 calls per day with 25 working days.
95 leads will carry over to the next month.

New ISM – Month #3
Assumptions:

• 80 New Leads
• 15% are Bad
• 10% are Sold
• 95 Carry Overs (25% Buy elsewhere, 5% Sold, 20% No Response)

If we make contact once every 3 days, this requires 59 calls per day with 25 working days.
115 leads will carry over to the next month.

Whats the contempory wisdom on this?

 

[kcar]

200/month is key; with 250/month is pushing but doable per Internet Manger.

 

[yagoparamo]

Reverse the numbers; if we take that the average person closes 10% of the leads considering all lead quality to be equal (and that perhaps my % is correct), how many sales can a person handle a month? 20 units? Then the person should get 200 leads/month.

Of course, if these are mosthly used, perhaps can handle more. If majority are new, perhaps can handle less since these require more delivery time.

If the person is an excellent closer, with an assistant (what then is called "the internet departmet") maybe they can handle a lot more and keep % closing in good terms.

 

[ddavis]

Reverse the numbers; if we take that the average person closes 10% of the leads considering all lead quality to be equal (and that perhaps my % is correct), how many sales can a person handle a month? 20 units? Then the person should get 200 leads/month.

Of course, if these are mosthly used, perhaps can handle more. If majority are new, perhaps can handle less since these require more delivery time.

If the person is an excellent closer, with an assistant (what then is called "the internet departmet") maybe they can handle a lot more and keep % closing in good terms.

If you look at the numbers, the second month takes in an assumption of a 15% closing ratio. It is 10% of that months leads plus 5% of the previous. ISMs will take all the leads that you will throw at them but cherry pick. Plug in 200 leads per month and consider the amount of phone calls after 90 days. At my last store, my top guy sold 99 cars, in a quarter, and I never allowed the lead count, on any ISM, to exceed 100.

I kept an eye on the ROI report and eliminated any lead source that was low performing. We maintained a closing ratio (sales as a percentage of leads) above 15%. How many calls to you expect your ISMs to make?

 

[Jeff Kershner]

Reverse the numbers; if we take that the average person closes 10% of the leads considering all lead quality to be equal (and that perhaps my % is correct), how many sales can a person handle a month? 20 units? Then the person should get 200 leads/month.

Of course, if these are mostly used, perhaps can handle more. If majority are new, perhaps can handle less since these require more delivery time.

If the person is an excellent closer, with an assistant (what then is called "the internet department") maybe they can handle a lot more and keep % closing in good terms.

Yago and Kkar - you guys are smoking crack. 200 leads a month? Are you serious??

Doug, you have it mapped right for IMS's that are cradle to grave.

I recommend assigning 70-80 leads per ISM.
15% closing ratio on forum filled internet leads is the goal
Your carry over percentage is close to what I measure out as well.

You give an ISM anymore that 100 a leads a month and you're going to lose sales. Sales people are going to cherry pick leads no matter what you do, throw 200 leads at'm and in their mind, there's no need for follow-up. They'll wait for a fresh lead / low hanging fruit before they go back and work leads from the previous week and previous month.

My job as director of marketing is to get the best possible leads for my team. If I'm going to allocate them 70-80 leads a month, I'm going to get them the best 70-80 leads I can possibly get.

Basing sales and lead count on a 10% closing ratio is causing some of this confusion. Sales people need to be help to a 15% closing ratio - UNLESS you have crap leads. And again, then it's time to rework your lead mix and marketing budget to go after acquiring better leads.

Be sure your team has the right tools an resources for great follow-up. Throw in a Lead to Show tool while you're it.

 

[CAORYAN]

Kershner,

You wouldn't hire me or any ISM I know with 80 leads. Wisdom will tell you the dealer expects you to sell 8 to 10 cars and I need to sell 20-25 to make the money I want. If you want average ISM's your method works. If that same internet manager can take ups and phone calls 80 is fine. I have sold 25 cars a month off 80 internet "Email" leads and phone ups.

No way I would work somewhere that wanted me to sell 8 to 10 cars a month. Give people room for greatness but don't overwhelm them.

I think 180 to 215 is fine. If you have the right follow up system (Some automated) and the right people. If you hire a BDC type 80 is fine if you hire a car guy who knows what he is doing you have to give him more.

Just my two cents

 

[Jeff Kershner]

Ryan, when you would see the resources and tools I provide my dealers (though most don't use) - you would love to be an ISM for one of my Nissan dealer.

I have ISM's receiving 80 leads and selling 15-20plus cars a month.

You're forgetting..

80 Leads the first month. A good 40-50 leads from the previous month on top of the 80 fresh leads from this month. The next month your getting another 80 fresh leads, plus 40-50 leads from the previous month and another 20-30 active leads from 2 months before.

Month 3, you're sitting on 150-170 active leads.

When you throw 200 plus leads a month to someone, they will not nor would they have the time to work all the leads effectively.

My ISM's are not restricted from taking phone ups. They're usually our best performers on the phone.

My cradle to grave ISM's at my Nissan dealer sell more cars and make more money that the traditional floor every month.

 

[ddavis]

I expected some people to suggest 120, 125 or even 130. I never expected 180 or more.

I increased ISMs when an additional man/woman would drop us back to about 80 leads/each. The goal should be to close atleast 10% of current leads and 8 to 12% of the bank.

Jeff has it right with: They'll wait for a fresh lead / low hanging fruit before they go back and work leads.

CAORYN, my team sold 70% of new and used car sales and made good money. Everyone wanted to be in the Internet department and the store considered it a promotion. An ISM got written up if you sold under 15 cars. We didn't have the resources to give that position to a marginal salesperson.

We didn't purchase leads, from any source, and my people had confidence that any lead had a great chance of being sold.

 

[yagoparamo]

Reverse the numbers; if we take that the average person closes 10% of the leads considering all lead quality to be equal (and that perhaps my % is correct), how many sales can a person handle a month? 20 units? Then the person should get 200 leads/month.

Of course, if these are mosthly used, perhaps can handle more. If majority are new, perhaps can handle less since these require more delivery time.

If the person is an excellent closer, with an assistant (what then is called "the internet departmet") maybe they can handle a lot more and keep % closing in good terms.

Jeff,

If you look at my comment--and perhaps I didnt explain well enough--I said things like:

1) Considering an average of 10% closing ratio
2) That all leads are equal
3) etc

You are very unique, with a lot to background on this, with very finetuned lead sources, etc.

I was more or less talking about the average dealer where they hire one guy and put him in a room with a computer to work with the leads the dealer already gets.

 

[ajholland]

We are trying something a little different at a couple of my stores. Our Internet Manager's receive about 150-175 leads per month, but those leads are transfered to our BDC after 45 days for long term follow up. They don't seem to have a problem staying after them aggressively and we still have solid long term follow up out to about 180 days.