• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Cost of a conversation

Alex Snyder

President Skroob
May 1, 2006
2,934
1,658
Awards
1
First Name
Alex
@Alex Snyder If engagement is high, and conversion to an appointment is low.....then they know they need training.
That's a good KPI to measure by. In hunting the cost of a conversation, that is definitely one to consider as well (y)

However, I hope you would agree that 19 activities per lead is better than many dealers.
I totally agree and have witnessed what this can do a dealership many times now. The stores that focus on engaging customers over just beating the lead clocks are the ones who are growing their sales outside of the market area, selling more used cars, converting more customers from competitive brands, and hold a lot more gross.

And you're right, technology can only take you so far. Humans still play a giant role.
 
Visit Generations Digital

Steve Roessler

Lot Lizard
Feb 15, 2016
37
14
First Name
Steve
That's a good KPI to measure by. In hunting the cost of a conversation, that is definitely one to consider as well (y)



I totally agree and have witnessed what this can do a dealership many times now. The stores that focus on engaging customers over just beating the lead clocks are the ones who are growing their sales outside of the market area, selling more used cars, converting more customers from competitive brands, and hold a lot more gross.

And you're right, technology can only take you so far. Humans still play a giant role.
:cool:(y). Just trying to help dealers apply these practices are another conversation. It's a culture shift
 
Mar 30, 2020
2
0
First Name
Josh
Great example of how easily a metric can be twisted to make a marketing campaign look successful. If I've brought in 200 leads that are converting to conversations at 16% then I am spending my money badly on the leads I am bringing in. There is technology for dealers to optimize between all these marketing channels which are thinking about the lead conversion metric rather than all the other smoke in mirrors that come before that.
 

Steve Roessler

Lot Lizard
Feb 15, 2016
37
14
First Name
Steve
Great example of how easily a metric can be twisted to make a marketing campaign look successful. If I've brought in 200 leads that are converting to conversations at 16% then I am spending my money badly on the leads I am bringing in. There is technology for dealers to optimize between all these marketing channels which are thinking about the lead conversion metric rather than all the other smoke in mirrors that come before that.
200 leads converting at 16% to engagement????? Or to an appointment? 2 Different metrics to be measured here
 
Mar 30, 2020
2
0
First Name
Josh
200 leads converting at 16% to engagement????? Or to an appointment? 2 Different metrics to be measured here
The key metric here is the sale. I merely took the example to explain it. If you work backwards - X sales from Y leads and Z clicks - as opposed to the other way - you can measure your marketing strategy successfully.
 

Steve Roessler

Lot Lizard
Feb 15, 2016
37
14
First Name
Steve
The key metric here is the sale. I merely took the example to explain it. If you work backwards - X sales from Y leads and Z clicks - as opposed to the other way - you can measure your marketing strategy successfully.
@JoshS I agree about it being all about the sale. However, most people only track 1) Leads 2) Appointments 3) Show 4) Sold. Lots of black holes missing. How do you schedule of an Unengaged lead? You can't. It all starts with engagement and that should be measured first to increase performance. Think about it.

Example 1
100 internet lead
40% Engagement
= 40 engaged leads
16 appointments schedule (40% conversion rate)
8 show (50% conversion rate)
5 sold (5% closing)

Example 2 (Keep all metrics the same but increase engagement)
100 internet lead
70% Engagement
= 70 engaged leads
28 appointments schedule (40% conversion rate)
14 show (50% conversion rate)
8.75 sold (8.75% closing)
 
  • 1
Reactions: Alex Snyder