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Lead-to-appointment set ratios. Internet/Phone ups

Discussion in 'CRM, ILM, and Desking Support & Best Practices' started by tripdad, Apr 28, 2010.

  1. tripdad

    tripdad New Member

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    Being fairly new to the BDC side of dealerships, I am really not sure what the accepted "standards" are for lead-to-appointment set ratios.

    Specifically, my BDC handles all inbound sales calls where the customer does not ask for a particular salesperson. How many appointments should we be getting for every 10 inbound calls?

    We also handle all inbound internet traffic from 4 new car lines (we carry 7 overall, but do not get CDJ leads), as well as autotader/cars.com, edmonds, kbb, etc...plus our own website. Is there a general rule of thumb for leads-to-appointment set ratio? Is it different between websites? Personally, we have much better luck with contact, appointment setting, and selling Honda i-leads as compared to Ford-Mercury i-leads, and GM leads are far behind both.

    Any insight is greatly appreciated. Thank you in advance!

    Tripdad
  2. Jerry Thibeau

    Jerry Thibeau New Member

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    To get some of your answers, start with this thread: http://forum.dealerrefresh.com/f6/internet-roi-report-902.html

    As far as the phone-ups go, it depends on how well trained your staff is. We have trained individuals who have averaged 80% appointment ratios. That is on the high side and it takes a very skilled person to accomplish that. You should be able to appoint 6 out of the 10 easily. With a 60 percent show ratio (very achievable) you'll see 3-4 customers show. You can expect to close 50% of the people who show. Good dealerships with good process can close as high as 20%. 15% is respectable. Most dealers out there are well below 10% which is why they should be talking to Phone-up Ninjas. See my Ninja Calculator to see what increasing your closing ratio by 5% will do to your commissionable revenue.

    Now with the Internet lead it's not as good since you can't always get them on the phone*. But if you can get them on the phone it then becomes a phone-up and the above numbers apply. Better dealers are closing anywhere from 10 - 15 percent of their Internet leads. Quality of lead source also plays a factor in this. I am sure some of the Internet managers here can provide you with more data.

    * The more dials you make the more likely you are to get the customer on the phone. Most salespeople make one dial and then schedule a call for the next day at the same time. Then after a few days with no results they give up. Want to increase your chances, call within 15 minutes of receiving the lead. Try 3-4 times during the course of the day. It takes on average 9.1 dials to reach an Internet lead. Most people give up after several attempts.
    Last edited: Apr 28, 2010
  3. Ryan Thompson

    Ryan Thompson Active Member

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    Like your style Jerry. I have learned a lot from you on the forum.
  4. William

    William New Member

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    Not sure about appointments "set," but our appointments shown ratio standard we use is 25%. Then 60% of those appointments should convert to a sale, which results in an overall 15% lead to sale ratio.
  5. Jerry Thibeau

    Jerry Thibeau New Member

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    Thanks Ryan.

    William, I am guessing you're saying that 25% of all your phone-ups come in. I am talking about if I make the appointment what percentage of people will actually show for their appointment. In my experience it's on average about 60%. There are variables that will alter this. The larger the city, the lower the show ratio; smaller the city, the higher the show ratio. Also, the sooner the appointment the higher the show ratio. Management confirmation calls can also help increase the show ratio.
  6. tripdad

    tripdad New Member

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    William, is this goal for internet leads, or phone leads, or a combination?

    Tripdad
  7. DrewAment

    DrewAment Active Member

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    IMO - Lead should be defined as a unique inbound phone call or unique email lead that is valid.

    40% Appts to Leads
    75% of those should show
    66% of those should sell

    So, 100 Leads = 40 Appts = 30 Shown = 20 Sold

    If you do the math, and are front to back (full) salespeople in selling, each average internet salesperson should not be receiving more than 80 fresh new leads a month.

    There is a whole people/process to look at - your mileage may vary.
  8. Jerry Thibeau

    Jerry Thibeau New Member

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    Drew, I have to disagree with some of your numbers. 40% appointment ratio is average at best. 40% might be more an Internet lead. I've seen dealerships double that number when talking phone-ups. 75% show ratio is achievable in some cases, but on the high side. 66% closing ratio might happen when the stars are aligned and the incentives are off the charts. Generally closing ratios are 50% or less. I know these numbers well from looking at yearly data from the CRM reports of reputable dealerships. I once compiled a master report for all the CRM clients using iMagicLab and came up with the numbers I mentioned above.
  9. ECURB

    ECURB New Member

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    Some observations I have made that may apply... Internet leads...

    Source is a HUGE variable... leads from the dealer website should have a much higher appointment rate than bought leads (auto usa/dealix) and the reverse applies.

    A lot of purchased leads are much harder to get in for various reasons... Inventory/competition/the person was just bored at 3am on Edmunds.com (lol)

    I have had tremendous success with leads from our dealer site and have struggled with bought leads, I am actually developing a completely different 'lead lifecycle" for certain bought leads just because of the difference in how they respond.

    If you are able to get someone on the phone who is interested (at all) in a product you have in stock, you should be at a very high appointment rate. 70%+ I would think... I mean they want what you have, how much more could you ask for?

    Now if we are talking non-responsive leads or people looking for very specific vehicles you do not have, obviously the rate will plummet.
  10. Jerry Thibeau

    Jerry Thibeau New Member

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    Agree with everything you said. Spot on!

    Like I said in a similar thread, I would like to see the CRM companies develop a master report with appointment and close ratios on different lead providers. It's time dealers start holding some of these companies accountable.
  11. DrewAment

    DrewAment Active Member

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    Dealersocket has one.

    Its been time, forever, dealers are just historically lazy and throw more money at the problem.
  12. tripdad

    tripdad New Member

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    I'm going to change direction, and go ahead and post some numbers...3 months worth. Hopefully, others will do the same, and we can all get a good idea of the averages so that we can set goals for improvement. Here goes...

    Phone ups:

    61% appointments set
    68% shown (of those set)

    So, out of 100 phone ups, we have 41-42 customers in the door. They meet with the sales manager, and are flipped to a salesman. The salesman is pre-determined before the customer arrives, and is responsible for prepping the car of interest if there is one.

    Internet leads:

    18% appointments set
    81% shown (of those set)

    So, out of 100 internet leads, we have 14-15 customers in the door. The same process as above applies.

    Overall, the dealership has closed 44% of those who show for an appt.

    I know the internet numbers are below what everyone says they should be. I am taking steps to improve this number, the biggest one being that we are scheduling more phone calls earlier in the process than we had. There is also an issue with a pop-up coupon on our website that doesn't require a vehicle selection or phone number or e-mail address. So, I might get a lead that looks like this:

    Name: John Smith
    Phone:
    E-mail: jsmith@yahoo.com
    Vehicle of interest: SUV


    Regards,
    Tripdad
  13. Jerry Thibeau

    Jerry Thibeau New Member

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    I am not talking about for one dealership, I am talking about looking at all the data from all the dealerships that use their CRM tool and then compiling a master report. Now that would be some good data. If they have a report like that I would love to see the data. Shellie, you here?
  14. Jerry Thibeau

    Jerry Thibeau New Member

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    Your phone-up numbers look pretty good. As far as Internet goes I think there's room for improvement. The more dials you make the more likely you are to make contact eventually. Also consider doing some of these e-mails with the embedded videos. Or a walk around video on pre-owned vehicles.
  15. Jerry Thibeau

    Jerry Thibeau New Member

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    A CRM vendor just called me and they love the idea, they are going to consider doing this. I suggested they publicly display the results each month. I really hope this happens.
  16. Jason Walter

    Jason Walter New Member

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    I think what Drew was referring to were web leads. Depending on who is handling the leads...ie..CRC personnel or a salesperson will determine numbers to look at. For web leads handled by a CRC person you should strive for 40% appt to lead, 75% show and 65% close. That will give you about a 20% close rate. Of course different sources will vary but overall if you are achieving those numbers you are well above the average.

    For a salesperons handling leads from cradle to grave you shold expect a lower appt to lead, same show rate and a higher close rate...

    Your phone numbers look fine...
  17. Jerry Thibeau

    Jerry Thibeau New Member

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    The dealers I have seen close 20% on web leads had a higher appointment percentage. Achieving 75% show and 66% close in conjunction would be very difficult. I am not doubting that 20% is achievable, the appointment percentage needs to be higher. That is accomplished with an effective follow-up campaign using both e-mail, video and phone.
  18. Jerry Thibeau

    Jerry Thibeau New Member

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    Here's a more realistic approach to closing 20%.

    April you get 100 leads with the following results:

    40% appointment ratio = 40 appointments
    65% show rate = 26 people show
    50% close rate = 13 sales

    May you get 100 leads with the following results:

    40% appointment ratio = 40 appointments, plus you get 22 people from previous months to appoint since you've been doing outstanding follow-up. That would be appointing 12% of April's customers and 10% from March or prior months.
    65% show rate = 40 people show
    50% close rate = 20 sales
  19. ECURB

    ECURB New Member

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    50% seems really low for a close %...

    I would think it should be closer to the 70%-80% range... with the exceptions being people looking for specific packages you do not have in stock or the occasional unreasonable price shopper (qualifying them should have eliminated this).

    If you have the vehicle the person wants in stock it should be a 90%+ close...

    Sure there are times when you just can't close someone but I would have to take a long look in the mirror if I had a customer come in to look at the right car and not spot/sell them.
  20. Jerry Thibeau

    Jerry Thibeau New Member

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    I can tell you that the industry average is a 50% close rate on appointments that show. I've seen data to back this up.

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