It's 2019. What is a good Web Lead Close Rate? [Insert "yeah but our leads are different" here]

[Timothy Main]

Do you think there is a correlation between larger market and lower close rate, versus a small market and a higher close rate, similar to lower conversion rates in large metros with more competition?

I feel that there is a small correlation but it is not anywhere close to the defining factor. Regardless of market size the defining factor to close rate is people and process followed by marketing strategy, inventory selection, etc. I've seen large market stores close at a high percentage, and small market close low.

 

[JKidwell]

Really, what makes a Lead Bad is a lack of good contact information, PERIOD. If you can't contact them due to no contact information, that is a BAD LEAD, other than that, it's a good lead as far as accurate contact information, one that could be marketed to from here to Unsubscribe.

 

[Baron Ringler]

You have to split items in a lot of ways. Track and have goals for the different sources. To think that manufacturer third party leads will close like your website leads doesn't allow you to focus on the performance of each source. Set a goal and standard for each source then measure ROI, close rate, etc, and set standards of performance to those. Used vehicles? Same thing.

If there was ever a question that invited a landslide of caveats in my 18 years in this industry it would have to be "What is your close rate?". Lead source mix, Lead type (New or Used) mix, Sold in Timeframe vs From Leads, and what your store counts as a Bad lead all contribute to a wide range of close rates on web leads.

I would be interested in knowing what this community's 2019 goals are which also would need your definition of what a Bad lead is.

Here are mine:

15% Lead to Close rate goal (sold in timeframe)
That number comes from considering any lead with a name and one working contact path as Good even if they never reply in the 120 days of our follow-up. Lead still is Good, but just Lost at that point...

These are our "stage" targets:
35% Appointment Set (typically needs a 60% or higher contact rate)
75% Appointments Show
60% Shown Appointments Sold (may be sold on be-back)

Here is my caveat. Where I'm struggling a bit is where that breakout is, and where that Goal is, between New and Used. We have a higher Used closing rate than New which I'm sure is normal. I have some stores at 13/18% and some at 7/20% with variations in the volume ratio of New to Used as well. Do any of you speak to New and Used as completely separate Goals or do most of you still have a singular Goal that you target for the entire Lead Bucket? Thanks fellers!

 

[Alex Snyder]

Really, what makes a Lead Bad is a lack of good contact information, PERIOD. If you can't contact them due to no contact information, that is a BAD LEAD, other than that, it's a good lead as far as accurate contact information, one that could be marketed to from here to Unsubscribe.

and I'd like to add one more thing from the wise @Brian Tucker who said: "the quality of your leads is only as good as your response to them."

 

[Brian Tucker]

Quality of the response, determines the quality of the lead

 

[Tarry Shebesta]

Alas, Here's my opinion on benchmarks for closing rates by lead source with a sample lead volume of 100 leads and lead mixture as follows. Keep in mind, your lead mixture might be very different therefore your close rate goals should be also different.

100 leads
70% 3rd party leads
10% brand site leads
20% dealer website leads

3rd party leads new cars: 5-7% close rate
OEM Brand Site leads: 13-15% close rate (can be volitle based on lead volume)
Dealer Website leads new cars: 18-20% close rate
Close rate goal all sources: 12.5% close rate

Where do leads generated from social marketing and/or PPC fit in here?

 

[Zhendrix]

Where do leads generated from social marketing and/or PPC fit in here?

Depends on where they convert. Does the social campaign take the consumer to your website? If so, where? Do the PPC ads land your consumer on your website or is the consumer engaging via an extension?

 

[Tarry Shebesta]

Depends on where they convert. Does the social campaign take the consumer to your website? If so, where? Do the PPC ads land your consumer on your website or is the consumer engaging via an extension?

It seems like most FB marketing is used for branding, or sending clicks to a particular VDP on the dealer's website.