Is there any data that backs this up? I agree it makes sense, but how do we know website traffic drives sales?? Obviously on a site like Amazon, etc. more traffic leads to more sales, but the car business is a different game all together.
Correlation between sales and website traffic
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Is there any data that backs this up? I agree it makes sense, but how do we know website traffic drives sales?? Obviously on a site like Amazon, etc. more traffic leads to more sales, but the car business is a different game all together.
- Apr 1, 2012
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Cars are different in the sense that people don't buy them online. However, you are still attracting perspective buyers to your website with the intent of a transaction.
As for the correlation, you don't need much data to prove that there is a positive correlation been traffic and sales. The journey to the sale has tons of variables, which makes a percent of traffic in relation to sales a tough metric, but visiting a dealers website is definitely a part of a lot of sales.
As for the original question, I've always used Joe's numbers as a guide, and will quote him as Joe from Dealer Refresh. My top performers are typically in the .75-2% range.
As for the correlation, you don't need much data to prove that there is a positive correlation been traffic and sales. The journey to the sale has tons of variables, which makes a percent of traffic in relation to sales a tough metric, but visiting a dealers website is definitely a part of a lot of sales.
As for the original question, I've always used Joe's numbers as a guide, and will quote him as Joe from Dealer Refresh. My top performers are typically in the .75-2% range.
- Apr 7, 2009
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Robert, I totally agree with Jerry's conclusion. Site traffic doesn't DRIVE sales, but, there's a correlation where if site volume goes down or up, your sales will also.
But, consider it's a loose correlation. Meaning....
If your website traffic dropped 50%, would your sales drop 50%?
No.
You've got a great referral biz and a local presence that will always be the foundation of your biz.
If your website traffic gained 50%, would your sales rise 50%?
No.
This happened to me* everything went up and and sales were up slightly. Which lead me to discover:
Marketing makes the phone ring.
Sales managers make the cash register ring
Summary: If you're paid on total sales and you want to track how efficient your game plan is doing (MoM, YoY), you can use this metric to get a real high level look at your performance.
HTH
Joe
*Site traffic up 35%, TOS up 40%, # of pages viewed up 30%, phone ups by 300%, leads by 500% [link to post],
But, consider it's a loose correlation. Meaning....
If your website traffic dropped 50%, would your sales drop 50%?
No.
You've got a great referral biz and a local presence that will always be the foundation of your biz.
If your website traffic gained 50%, would your sales rise 50%?
No.
This happened to me* everything went up and and sales were up slightly. Which lead me to discover:
Marketing makes the phone ring.
Sales managers make the cash register ring
Summary: If you're paid on total sales and you want to track how efficient your game plan is doing (MoM, YoY), you can use this metric to get a real high level look at your performance.
HTH
Joe
*Site traffic up 35%, TOS up 40%, # of pages viewed up 30%, phone ups by 300%, leads by 500% [link to post],
- Sep 30, 2010
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- Bill
Joe's quote nails it as far as every market is a bit different. I have never tracked the "sales per 1000" before but thought I would see what it looked like for 2 of our same brand stores. The chart below shows the monthly breakdown and year to date totals. You can see by the notes the store on the left is in a much smaller market, not as much same brand competition nearby compared to our other store here in Richmond. These two stores are about 3 hours away from each other. The monthly "sales per 1000" is all over the board. But, what I do see validates that the "sales funnel" is alive and well. I have highlighted a couple of rows where the website traffic was a lot higher 60 days prior to a month where the "sales per 1000" number shot up significantly. If that trend holds true, both of these stores are going to have a bang up September! Thoughts?
- May 1, 2006
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I had my decimal point in the wrong spot. We should be talking about sales per 100 visitors; not 1,000.Thanks for posting your numbers Bill - helped me realize my mistake.
- Oct 17, 2011
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- Dan
the correlation between website traffic and sales is absolutely NOT 1:1 (it's probably not in most cases even 100:1). What a dealership website does that traditional advertising, radio, television is answer the following questions that all car customers are asking:
1.) Do they have what I want?
2.) Do they have what I want at a price I can afford?
3.) Do they have what I want at a price I can afford in a color I like?
There really is no other reason to visit a dealership website unless you are at least somewhat interested in buying a product or service from that dealership. I mean let's face it our funny pictures of cats are nothing when compared to fan pages on facebook, our blogs REALLY aren't all that interesting, and people really aren't looking to see if any of their friends work at XYZ dealership (staff page).
Is Dealership Website traffic going to be a definitive determiner of expected sales, NO! But as a dealer whose advertising is heavily invested in Digital I can tell you months where my group has over 1 million page views are typically much more successful sales months than the ones where the traffic was incrementally smaller.
Keep telling yourselves there's no correlation between Dealer Website traffic and sales and I'll keep laughing while I hand you your ass every month without fail.</story>
1.) Do they have what I want?
2.) Do they have what I want at a price I can afford?
3.) Do they have what I want at a price I can afford in a color I like?
There really is no other reason to visit a dealership website unless you are at least somewhat interested in buying a product or service from that dealership. I mean let's face it our funny pictures of cats are nothing when compared to fan pages on facebook, our blogs REALLY aren't all that interesting, and people really aren't looking to see if any of their friends work at XYZ dealership (staff page).
Is Dealership Website traffic going to be a definitive determiner of expected sales, NO! But as a dealer whose advertising is heavily invested in Digital I can tell you months where my group has over 1 million page views are typically much more successful sales months than the ones where the traffic was incrementally smaller.
Keep telling yourselves there's no correlation between Dealer Website traffic and sales and I'll keep laughing while I hand you your ass every month without fail.</story>
- Apr 7, 2009
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Dan,
Wow! Sometimes your ego just blasts out of your body and takes over your keyboard! You're writing in circles, I'm not sure what you said. I think you're crossing up definitions and you're surely not reading the thread.
#1).
#2).
Let's start here:
Correlation | Define Correlation at Dictionary.com
"...Statistics. the degree to which two or more measurements show a tendency to vary together"
re: #1.
The group has found so far: THE UNIQUE VISITOR TO SALES RATIO IS .79% to 2% So, if you had read, you'd find that in most cases the correlation between website traffic and sales is on either side of 100:1.
re #2.
We're all stating there is a correlation.
I've added that logic leads me to believe that the correlation is "loose" or elastic. Bill's awesome table illustrate that theory.
Wow! Sometimes your ego just blasts out of your body and takes over your keyboard! You're writing in circles, I'm not sure what you said. I think you're crossing up definitions and you're surely not reading the thread.
#1).
#2).
Let's start here:
Correlation | Define Correlation at Dictionary.com
"...Statistics. the degree to which two or more measurements show a tendency to vary together"
re: #1.
The group has found so far: THE UNIQUE VISITOR TO SALES RATIO IS .79% to 2% So, if you had read, you'd find that in most cases the correlation between website traffic and sales is on either side of 100:1.
re #2.
We're all stating there is a correlation.
I've added that logic leads me to believe that the correlation is "loose" or elastic. Bill's awesome table illustrate that theory.
- Apr 7, 2009
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Back of the napkin math time v1.0
If PPC cost's $4 per visitor AND if your store has a 1% unique visitor-to-sales ratio (100:1), what is your PPC cost per sale?
answer: $400
If PPC cost's $4 per visitor AND if your store has a 1% unique visitor-to-sales ratio (100:1), what is your PPC cost per sale?
answer: $400
- Apr 7, 2009
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Back of the napkin math v2.0.
If PPC cost's $4 per visitor AND if BILL'S RICHMOND store has a 1.7% unique visitor-to-sales ratio (59:1), what is Bill's PPC cost per sale?
Bill's store needs 59 visits per sale. $59 * $4 = $236
Think about it.
If PPC cost's $4 per visitor AND if BILL'S RICHMOND store has a 1.7% unique visitor-to-sales ratio (59:1), what is Bill's PPC cost per sale?
Bill's store needs 59 visits per sale. $59 * $4 = $236
Think about it.
- Apr 7, 2009
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If you believe that your web site is "your front door to your store", then this exploration of "traffic & it's relation to sales" is of interest to you.
If Bill's competitors are avg'ing around 1%, then all of Bill's "invisible" efforts, produce a far high yield than his competitors (Bill = 1.79%)
These number internally are awesome. This high level number scores the effort of the entire sales and marketing crew. Look at your numbers Month over Month or YoY. Marketing can be rocking it, and the inventory can be AFU and the score falls. If the incentives rock, the scores improve. If you get a big ass storm, you can lose a week and your numbers tank. If the sales team is poorly managed and you keep dishing out more ups, the score maynot budge (fat and happy reps are hard to motivate
p.s. IMO, I can't come up with a solid way to compare these scores across roofs. There are too many variables.
Uncle Joe Rule #121: "Dealers are like snowflakes, no 2 are the same."
If Bill's competitors are avg'ing around 1%, then all of Bill's "invisible" efforts, produce a far high yield than his competitors (Bill = 1.79%)
These number internally are awesome. This high level number scores the effort of the entire sales and marketing crew. Look at your numbers Month over Month or YoY. Marketing can be rocking it, and the inventory can be AFU and the score falls. If the incentives rock, the scores improve. If you get a big ass storm, you can lose a week and your numbers tank. If the sales team is poorly managed and you keep dishing out more ups, the score maynot budge (fat and happy reps are hard to motivate
p.s. IMO, I can't come up with a solid way to compare these scores across roofs. There are too many variables.
Uncle Joe Rule #121: "Dealers are like snowflakes, no 2 are the same."
