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Internet Closing Percentage

My old store closed Internet leads in the 20's 10/12 months out of the year, topping out at 30%.

We were also the only Toyota store within 100 miles, and had the only decent selection of Chevy in 60 miles. We were responsible for 35-46% (380 last month) of all cars sold in the county. Our numbers were inflated because people already had an idea they wanted to work with us. Also, it was a one price store.

A different dealership in that market closes 19-22% I believe. He has several Ford stores closer by, and they market in his territory really have with Mudd Advertising ads.

This is a huge part of this conversation in my opinion. All markets are just a bit different. Here in my town, our Toyota store has 3 competitors within a 15 to 30 minute drive. That store usually closes in the 13 to 17% range, so not too bad given the competitive market.
 
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This is a huge part of this conversation in my opinion. All markets are just a bit different. Here in my town, our Toyota store has 3 competitors within a 15 to 30 minute drive. That store usually closes in the 13 to 17% range, so not too bad given the competitive market.

Bill,


Not only markets but I would imagine that brand also has a huge impact from one to the other.
 
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To me a person should be able to handle 80-100 leads per month with proper follow-up. I understand what Jeff is saying about roll-over and how long term follow-up drops off but that can be corrected with a BDC who assists with that long term follow-up.

When I was working Internet Leads myself I had over an 80% connection ratio. Now with that ratio, I included people who would get back to me 2 weeks later to tell me they bought elsewhere because that was a connection.
 
Hey Jeff,

For a BDC, how many leads a month, in general, do you feel each rep should handle?

Thanks,

Mitchell

Mitchell, It sure had been awhile since we've heard from you. :hello:

I don't believe there's a "general" answer for this since it depends on the duties of that dealers individual BDC representative. Are you referring to online form filled leads only or do we have some live chat and incoming phone calls in the mix?

What's the hand off process at the dealership?
Are BDC reps encouraged or made to meet and greet the customer upon first arrival?

Several variables come into play.

BUT if you're referring online form fill leads only and a process where the BDC rep handles the lead from beginning to appointment - then I would generally recommend 130-160 a month on average. That's 5-7 new leads a day, compounded.
 
A step further would be managing your "lead to contact" ratio. How many customers have submitted a lead and engaged in bilateral dialogue with you (phone, email, or chat)? The more "contacted" leads you have the more opportunities you have to set appointments, have appointments show, etc. I push for a 60% contact ratio. Considering 100 leads, assuming it's month 1, and using the famous 50/50/50 rule here's what it looks like:

100 leads (ALL sources)
60% contact ratio
30 Appointments
15 Show

Zach, thanks for chiming in.

I'm curious to how you use your "contact ratio" performance and what defines a "contact"?

How does this number/performance sway or influence your process or lead acquisition?
What changes do you make when this number goes up or down?

Isn't the final result of a "contact" to schedule the appointment with the customer?

Sorry for all the questions. I used to measure "contact made" and after awhile I felt as if it was a measurement that I didn't need to spend extra time on since the end result was to get the appointment and show.

I like to see an average 25% or better overall lead-to-show rate and a 60% - 80% Sold rate. :cool:
 
This is all incredible information and I'm very appreciative for the different point of views. I always look for ways to improve and become better at what I do so that I can assist others in becoming better at what they do.

It is a little weird to jump onto DealerRefresh and see my face under "hottest thread" lol. Thank you Jeff for your insight and everyone else who has provided their expertise / experience.
 
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Zach, thanks for chiming in.

I'm curious to how you use your "contact ratio" performance and what defines a "contact"?

How does this number/performance sway or influence your process or lead acquisition?
What changes do you make when this number goes up or down?

Isn't the final result of a "contact" to schedule the appointment with the customer?

Sorry for all the questions. I used to measure "contact made" and after awhile I felt as if it was a measurement that I didn't need to spend extra time on since the end result was to get the appointment and show.

I like to see an average 25% or better overall lead-to-show rate and a 60% - 80% Sold rate.
C:\Users\ZACHHE~1\AppData\Local\Temp\msohtmlclip1\01\clip_image001.png

I define ”contact” as two emails exchanged with a customer, one phone call connected (salespeople spoke with customer and discussed next steps), or one appointment set complete. If one of the above is complete I recommend changing the status of the customer from “uncontacted” to “contacted.”

The biggest challenge in measurement is relying on salespeople to update the status, notes, and tasks. Beyond salesperson protection, I try to get salespeople to buy into the fact that updating the CRM with accurate information helps marketing make better decisions for lead acquisition (radius, limits, zip codes, sources, conquest, etc.)

I use “contact ratio” performance to make recommendations for everything from phone/email skills training, pricing strategy by location/competitors location, to match back purchase reporting.

For example, let’s say your store is on the outskirts of a major metro. Within the metro you have 2 competitors. You are purchasing leads in their backyard but not obtaining any sales. You have great response times and multiple attempts to contact but the customer’s never engage or move to “contacted”. Perhaps changing your pricing strategy, offering ranges or alternate vehicles, or enhancing your “Why Buy Here” messaging would increase your contact ratio. In some cases it makes sense to de-select the underperforming radius/zip code from your acquisition strategy.
 
To me a person should be able to handle 80-100 leads per month with proper follow-up. I understand what Jeff is saying about roll-over and how long term follow-up drops off but that can be corrected with a BDC who assists with that long term follow-up.

When I was working Internet Leads myself I had over an 80% connection ratio. Now with that ratio, I included people who would get back to me 2 weeks later to tell me they bought elsewhere because that was a connection.

That's an awesome connection ratio and great point re: customer buying elsewhere. To me, a big part of improving closing ratio is improving lead resolution. Often times while combing through a dealer's CRM I find a large number of "bought elsewhere" or "disqualified" customers who are in the incorrect status. The incorrect status prompts incorrect follow up, incorrect marketing messages, incorrect activity reporting, and uncountable hours of wasted effort. Imagine being a customer and telling your salesperson you purchased elsewhere and then receiving the weekly sales PDF email until you finally Opt Out. Imagine being the salesperson and having that customer on your "to-do/task" list everyday and blindly marking the activity complete. If the salesperson would have updated the status/resolution code we could have properly marketed to the customer with service, accessory, or referral messages.
 
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