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Dealer Showroom Floor Sales Statistics and Percentages

Jeff Kershner

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Showroom sales statistics for car dealers


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Here are some general showroom statistics compiled from Nada studies, Joe Verde Group and a few other sources/studies over the last several years.

Some of these statistics are a few years old but believe me, still hold. Even with the influence of the Internet, 90 PLUS % of our customers are still eventually visiting the showroom and looking for a relationship before spending a wade of money and finally making their purchase.

Even when your “Internet customer” visits the showroom, many times it’s back to square 1, and this is where most sales people can find themselves skipping the sales steps. It’s amazing how much your relationship with your customer determines the sale…

72% of customers tell their salesperson they are “just looking” at the initial greeting.

71% of customers say they bought their vehicle because they like, trusted and respected their salesperson.

85% of consumers say their salesperson DID NOT control the sales process, build any rapport or interviewed their sales person.

88% of customers said they received a lousy presentation and demonstration.

50% of customers said they bought on the spot when they got what they felt was a good presentation and demonstration.

93% of customers did not get a service walk as part of the sales process.

94% of salespeople are not confident of the price in the close.

90% of sales people DO NOT do any follow-up whether the customer purchases or not.

82% of customers cannot remember the sales persons name 1 year after their purchase.

78% of customers who visit your showroom buy a vehicle somewhere.

85% of customers made up their mind to purchase a vehicle before they left their house.

38% of customers purchase within 4 hours of visiting their first dealership.

57% of consumers purchase within 3 days of visiting their first dealership.

90% of customers purchase within 1 week of visiting their first dealership.

30% of customers have a family member who will purchase a vehicle in the next 90 days.
 
This one still boggles my mind!

"90% of sales people DO NOT do any follow-up whether the customer purchases or not."

If that doesn't make the case for a strong CRM I don't know what does...

This one reminds me of a guy I used to know when selling VW's way before the days of high tech CRMs. He was one of those hungry salespeople that spent tons of his own money to send birthday cards etc. to every single customer. He sat at his desk in the corner and I would bet that 40% of the people that walked through the door asked for him. I'm pretty sure there was one guy like him in every store in America. He was certainly part of the 10% that really "wanted it". He sold over 60 cars one June when I was working with him.

He could have managed my BDC anyday!

Maybe it's not the economy and gas prices that's the problem... it's follow up! ha!

Seriously though, the vendors in our space are lucky to be able to provide products and services that can help retain customers and make dealers money. ;-)
 
@Frank

The found the bast place to display import information is right on the "chip board". How many times do you walk by and count the chips (Sold units) on the magnet board. I guess some of us have a dry erase board..that works too. Just tape that shit up there.

Or I would make several copies and ask the receptionist to place it in the sales people and or managers mail box every morning for a week. They always loved me for that.

Jeff
 
sorry about the repost, it was unintentional...

The stat that jumped out at me was the first one. 72% of customers tell their salesperson they are “just looking” at the initial greeting.

A constant challenge and opportunity for discussion with my clients occurs around tracking. It seems crazy to me that so many dealerships are asking "what brought you in today" to a customer that is "only looking" and basing $100k ad spends around their answer. I'd say they aren't "only looking" any more than "they just drove by."
 
I've seen these several times before and heard them mentioned at a recent training seminar. Never has anyone given definitive, proper credit to the source.

"Here are some general showroom statistics compiled from Nada studies and a few other sources/studies over the last several years."

Huh? The only comment appropriate here is that the stats are either very very old, when the carbiz was booming, or "massaged" in some way. Like this one: "90% of sales people DO NOT do any follow-up whether the customer purchases or not." Total nonsense, period.

Aimsmith
 
Geesh Randy, don't get your panties all in a bunch over some statistics.

I agree with you. The 90% does seem a little high and maybe if this statistic is a few years old it could be off. But by how much really?

What if it's 80%?
Or even 70%,
Heck, lets says it's 60%.

Would that really make it any better?

The post was not to point out the exact percentages as a some stringent guideline, but merely to show that there is a huge opportunity to shine as a professional. Even if everyone of these statistics fluctuated by 10-20%, there is STILL huge opportunity to improve, a huge opportunity to stick out from the crown and build a book of business.

I'm sure you can agree with that?
 
Agreed Jeff,

It's a never-ending fight to get salespeople to follow-up.

Most of mine will tell you they perform better when I have my foot up their butts the most. Every time I ease off, the phone calls and ultimately sales, dwindle.

I, for one, will say it's at least 80%.