So, I've spent a lot of time on here in the last 2 years honing my skills as an Internet "Director" (glorifyed salesperson/lot attendant/ resident IT guy.) I've seen a lot of threads about numerous aspects of reporting, and accurate reporting data. The general consensus is that there is no consensus, you just need to try to have good data, and manage it. However, I had a mind blowing conversation with one of my managers today about our "true" closing ratio, and I was wondering what you guys thought of it. He says that when you are tallying up all your leads in your CRM at the end of the month, you must exclude any leads that start with A) a online credit app B) an online trade appraisal, C), a response to any monthly eblasts or D) anyone with a trackable incoming or outgoing phone call in the last ninety days. He then postulated that my closing ratio was probably less than half of my reported figure (a low 9.8%, but its practically a one man show, so hey). Any thoughts? Does anyone out there scrub there lead count down to get a "True" email lead closing ratio?
"TRUE" Closing Ratio?
- Thread starter Jewanski
- Start date
Oh, I forgot to include his reasoning. He says that 100% of Credit apps and trade appraisals are solicited by salespeople to unlogged customers. I may be stating it badly, but he seemed very sure of himself.
He has no clue what goes into closing. I'd be willing to bet he defends his 30% floor closing ratio to huh? #TRYAGAIN
- Apr 24, 2013
- 65
- 17
- First Name
- Anthony
Total non-duplicate email, chat, and tracked phone leads that are sales related vs delivered units.
You can use a sheet like this with CountIf formulas that will automatically give you some answers and remove duplicates. http://asarkis.ca/LeadExample.xlsx
Obviously I would hope your website vender has some tracking, but a sheet like this can be useful if you get leads from multiple sources, ie 3rd party sites, chat providers, etc.
You can use a sheet like this with CountIf formulas that will automatically give you some answers and remove duplicates. http://asarkis.ca/LeadExample.xlsx
Obviously I would hope your website vender has some tracking, but a sheet like this can be useful if you get leads from multiple sources, ie 3rd party sites, chat providers, etc.
He says phone calls are not Internet at all. We don't include incoming phone traffic in our lead count. We have 205 leads this month, and 19 sales. How does that stack up with no phone sales or leads thrown in?
Heres how I look at it. 50% of your leads you will never get in contact with. out of the 50% you do get in contact you should be setting appointments at a 50% rate. Out of that 50%, 80% should be showing up. Of those 80%, 50% should be buying
Example:
100 leads
50 in contact with
25 set appointments
20 of them show up
10 of them buy
Over the course of 3 months I am, almost spot on
426 leads
248 in contact (58%)
127 set appointments (51%)
99 stepped foot in the dealership (78%)
54 SOLD (54%)
If you have a car on AutoTrader or Cars.com, with a strong call to action, and they call using the number tracked to one of those sites, how is this not an internet lead? I did my own email blasts. Who is going to tell me that I don't get credit?
Incoming calls, that are trackable, are internet leads. Your manager is uninformed. I used to hear that nonsense from Group 1 but they are backwards when it comes to internet.
Stores are closing 20% (sold and delivered) of their leads. We only took credit for deals that were a result of an appointment with one of my ISMs or where a customer came in asking for one. Our closing ratio on shown appointments was over 85%. If we had 10 internet appointments show up, we expected to deliver 9 of them. Stores that are running "jick" prices, they have no intention of honoring, will be at 50% or less. Many of the Phoenix dealers ran their vehicles are $2500 to $3500 back of pure cost. The salespeople had to bump the customer that much to be even. Their used cars were advertised below auction values.
There are few dealerships that are running BDCs that close at 10% or more of their leads. I have heard about some doing much better but haven't had an opportunity to verify. Most BDCs are just adding another layer to the sales staff. They are taking leads but really not doing any "business development".
Incoming calls, that are trackable, are internet leads. Your manager is uninformed. I used to hear that nonsense from Group 1 but they are backwards when it comes to internet.
Stores are closing 20% (sold and delivered) of their leads. We only took credit for deals that were a result of an appointment with one of my ISMs or where a customer came in asking for one. Our closing ratio on shown appointments was over 85%. If we had 10 internet appointments show up, we expected to deliver 9 of them. Stores that are running "jick" prices, they have no intention of honoring, will be at 50% or less. Many of the Phoenix dealers ran their vehicles are $2500 to $3500 back of pure cost. The salespeople had to bump the customer that much to be even. Their used cars were advertised below auction values.
There are few dealerships that are running BDCs that close at 10% or more of their leads. I have heard about some doing much better but haven't had an opportunity to verify. Most BDCs are just adding another layer to the sales staff. They are taking leads but really not doing any "business development".
- Apr 28, 2009
- 1,163
- 363
- First Name
- Jerry
I would question your long term follow up. In month 2 & 3, you should be closing some of those 100 as well.
I do have a long term follow up system in place for internet/phone leads (99 days to be exact)
We're in a very odd location in Maryland. Not very populated, outside of the city and we have 5 Chevy dealerships within a 15 mile radius. Maybe this has something to do with it? what do you think?
We're in a very odd location in Maryland. Not very populated, outside of the city and we have 5 Chevy dealerships within a 15 mile radius. Maybe this has something to do with it? what do you think?
- Jun 29, 2011
- 60
- 19
- First Name
- Dave
On credit apps if they are for a floor sales person I would assign them to the floor rep so they don't impact your team closing ratio. If the credit app is for the internet person I would invalidate it so that the original (or converting) lead source is credited. This will probably leave you with just a few apps from people that just filled out a "pre-approval" type lead.
It makes no sense why your associate would want to invalidate appraisal leads if they go to the internet. If your internet department is responsible for converting those to appointments and sales they should absolutely count. If the customer is already working with a floor person I'd just assign that lead to the floor person based on whatever protection rules you guys got in place. The point in all of this to make sure someone is responsible.
Responses to your eblasts should totally be counted. Just explain to him that's called, outbound marketing. If you are supposed to do it, but not get credited then perhaps he should take it over.
I'm not sure what he means by not counting anyone with a 90 day incoming or outgoing phone call. How does this apply? If they called the store for a service or part appointment 60 days ago and then last week decided to fill out a lead to get a quote and you sell him a car this weekend that doesn't count? I would think if they filled out a lead in the past and nothing happened 50 days ago (no response to emails or calls) and then filled another lead a few days ago I would have marked the old lead a duplicate and so the converting lead or lead source is credited. If he means they called the store to ask about a car 50 days ago and never bought for whatever reason and then filled out a lead, internet sells but gets no credit makes no sense either.
I'd think your associate would want to be in touch with what lead sources or people are converting prospects to sales and from the sound of it I think you're trying to do just that.
It makes no sense why your associate would want to invalidate appraisal leads if they go to the internet. If your internet department is responsible for converting those to appointments and sales they should absolutely count. If the customer is already working with a floor person I'd just assign that lead to the floor person based on whatever protection rules you guys got in place. The point in all of this to make sure someone is responsible.
Responses to your eblasts should totally be counted. Just explain to him that's called, outbound marketing. If you are supposed to do it, but not get credited then perhaps he should take it over.
I'm not sure what he means by not counting anyone with a 90 day incoming or outgoing phone call. How does this apply? If they called the store for a service or part appointment 60 days ago and then last week decided to fill out a lead to get a quote and you sell him a car this weekend that doesn't count? I would think if they filled out a lead in the past and nothing happened 50 days ago (no response to emails or calls) and then filled another lead a few days ago I would have marked the old lead a duplicate and so the converting lead or lead source is credited. If he means they called the store to ask about a car 50 days ago and never bought for whatever reason and then filled out a lead, internet sells but gets no credit makes no sense either.
I'd think your associate would want to be in touch with what lead sources or people are converting prospects to sales and from the sound of it I think you're trying to do just that.
