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Internet Closing Percentage

Discussion in 'CRM, ILM, Chat, Desking, Emails, Phone, SMS' started by jmcreavy, Aug 14, 2014.

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  1. jmcreavy

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    So I've been working in the Internet Department within a few different Dealerships for a bit over 4 years now. With all the research I have done and training (Driving Sales, Grant Cardone, Joe Verde, etc), I've found that the national average closing percentage to be around 12-14%.

    I've recently seen some Dealers closing in the high teens to low 20's on their Internet Leads consistently.

    I'd like to hear from the DealerRefresh community on the closing percentage that you think your store should close at and if high teens to low 20's is attainable consistently.

    Now for a little insight on me - I personally always aim for above average as I want to be the best at what I do. There have been months where I have closed at 17 - 19% but not consistently.

    Thanks all!
     
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  3. cmjerry4531

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    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.
     
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  4. jmcreavy

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    Thanks for the info Cody! Is that using raw data (all leads including bad leads) or is that with fixed data where you have deleted out bad leads and non-responsive leads?

    The general rule of thumb I was always told is that if you are closing at a high percentage then you are not getting enough leads and losing out on opportunities. What are your thoughts on that?
     
  5. cmjerry4531

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    That was all leads. I kept a separate tally independent of the Internet Sales manager to make sure his numbers stayed true.

    Our rule was to keep our guys well fed. They would get around 90-120 leads each. With 20 cars they should gross about $7k. They get a percent of accessories and backend, so that number could be higher.

    They would occasionally get months with higher lead volumes, but we tried to keep it at a point where they wouldn't miss leads, or get burned out.

    We also had a long process. There are random emails and calls 6 months out.

    Another reason why the store does well us because Laura from Lauratoyota.com works there. Hand written thank you, birthday and Car anniversary cards do a lot for a stores reputation. She also does video thank yous.
     
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  6. jmcreavy

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    Oh nice you worked at the same store Laura is at! I've spoken with her a few times and she definitely has her stuff together.

    I'd love to go through the data for a store that is consistently closing at 20% or higher and also see the process they go through. Would be an eye opener for me for sure!
     
  7. Jeff Kershner

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    Jared - good questions to ask. As others are sharing their performance and stats, keep that open mind and ask the right questions.

    IMO, comparing one dealers "internet closing ratio" to another or to a "national average", doesn't provide much insight. You'll find many dealers / managers have different ways of measuring and getting to their final number. Especially the "internet closing ratio".

    2 quick variables that will sway this measurement:


    • overall lead mix (1st party vs 3rd party - where are the majority of leads originating from)
    • how phone calls and leads are entered into the CRM and measured (this can quickly yield an inflated %)

    I would recommend tracking and measuring your own dealers performance. Use your own results as benchmarks to determine your success. You must be CONSISTENT on how you're measuring your performance in order to track TRENDS. Your own trends and benchmarks is what you use to improve your process and lead acquisition.

    **Consider tracking your "Lead to Show" ratio before worrying about your "internet closing ratio"
     
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  8. Jeff Kershner

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    From my experience that's a lot of leads per sales person (unless you're referring to a dedicated staff (BDC) that works the leads to appointment).

    My general rule was usually no more than 50-60 leads per sales rep (cradle to grave) IF they are also in charge of long term follow-up and the leads are not circling back to a dedicated staff (BDC). Consider - if you assign 100 leads per sales rep and they sell 15%, you have 85 leads left over. Let's say another 15% purchase elsewhere, you now have 70 leads left over. Another 20% of the leads are low intent, now you have 50 leads left over. This of course compounds month over month into a significant amount of leads that can not be effectively managed by one person.

    A dedicated BDC / lead management staff is a different story.


    Here is yet another variable that will sway that "average" closing percentage. :)
     
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  9. joe.pistell

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  10. cmjerry4531

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    That's the lowest I've heard for leads. That would definitely make for less cherry picking. What was your target saturation of live leads -people with potential to buy? How long did it take someone to have that many working leads, and how many did they sell per month?

    I think it's healthy to look at other stores numbers, as long as you use it as a benchmark to get better, and not a reason to make excuses. Each quarter should be better than the last. Each month should include considering ways to get better.
     
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  11. Zhendrix

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    Jeff's right on the spot here. 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
    Customer's are visiting 1.4 dealerships before purchasing = 11 sales (11% closing ration ALL sources)

    Lead origination should be a consideration in your closing ratio calculations. Not to pre-qualify but all leads are not created equal. Often times customers start high in the sales funnel by submitted leads on third party or brand sites and then funnel down to a specific stock number on a dealer's website. Most CRM's either create multiple opportunities based on the customers lead submission(s) or merge and source the lead based on the last marketing source/lead submission. Customers are more informed than ever and generally see us via 7 different sources on 4 different devices before they make a showroom visit. In my opinion, your closing ratio should be a range defined by the multiple lead sources and the "choose your own adventure book" it took the customer to buy a car from you.
     
    #10 Zhendrix, Aug 17, 2014
    Last edited: Aug 17, 2014
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