Is closing ratio based off leads or prospects?

[ewalraven]

So we are finally getting some basic reporting at our dealership and I'm finally starting to dig into our ILM and really clean some stuff up. Quite honestly our processes are wack and our numbers are very skewed. I've been getting a lot of good advice from people in the industry and obviously bookmarking the crap out of threads from DR, but one quick question ..

Should my closing ratio be based off of prospects or leads?

For example, sometimes we get the same lead from multiple sources (ex. Dave Daverson sends a leads from AT.com, Cars.com, and our website). Say Dave sends out the lead to 10 different places. If we close Dave ... Do we have a 10% closing ratio or a 100% closing ratio?

I should note that currently we have ONE report for all leads - I eventually want to split these into phone-ups and internet leads, but I just got internet sales their own number. SO I'm working on ironing the kinks out.

Thanks to these threads by the way for getting me this far and giving me some good goals:
Internet ROI Report
Lead to Appointment Set Ratios
Phone and Internet Lead to Set Ratio

 

[Jerry Thibeau]

You have a 100% closing ratio. More importantly you need a CRM/ILM that will identify that that it's the same customer and merge the records. If you're paying by the lead, then your CRM/ILM should reject the new lead and you shouldn't have to pay for the same lead twice since it's already in the system.

 

[danoneil]

I agree with Jerry. If we have multiple leads from one customer, we count it as one lead.

 

[ewalraven]

Cool. Thanks guys!

 

[jscole86]

We consider our closing ratio the sold %(# of sales / good leads). Often times for email leads, we will have an already "active" lead, that goes to our website and submits either a trade-in form, finance application, or "additional savings" form, etc. This is still just 1 true lead, just additional info even though it comes into the customer record as a bad (duplicate lead) lead. The most difficult thing for us is making sure that salespeople are actually entering our phone-ups into our CRM system.

We track all of this in our ROI Report. We look at New Email Leads, Used Email Leads, Total Email Leads, Total Phone Leads, and Total Walk In Leads. Each of those are broken down in detail by the Source (Autotrader, Cars.com, GM 3rd Party, Websites, etc etc.) and by Salesperson.

• Total Leads
• Good Leads
• Bad Leads
• Total Appts
• Total Shown
• Total Sold
• Sold % (Sold / Good Leads)
• Appt % (Appts / Good Leads)
• Shown % (Shown / Appts.)
• Sold to Appt %
• Total Front Gross
• Total Back Gross
• Total Gross
• Avg. Front Gross
• Avg Back Gross
• Avg Total Gross
• Total Cost of Source
• Cost per Lead (total cost / total leads)
• Cost % (total cost / total gross profit)
• Total Profit (Total Gross - Total Cost)