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What would you folks consider to be a good closing percentage for appointments that show up for Internet Leads vs. Phone Leads? Which lead type typically closes at a higher percentage once they arrive for their appointment?I look forward to hearing your statistics and thanks in advance for your participation!
Mar 27, 2013
Looking back at our data, closing % in showroom is pretty consistent with internet leads and phone ups. My internet is a slightly higher closing percentage in the showroom. Probably because they are a more informed, educated and bottom funnel buyer. A phone up could be from a direct mail piece, print ad, website, or any ad source. Phone ups are consistently much easier to set appointments than a internet lead, which results in more shows, and more solds, and an overall higher closing percentage. We ask our showrooms to close at 65% regardless of the source, but they rarely meet that benchmark. Our benchmarks are set the appt 35%, show 65%, sell 65% = 15% closing. Yours Donnie Hinkle?
Craig, over the last 6-months our averages are as follows: 38% set, 53% shown and 35% of shown sold. The reason for my questions is that we too are establishing benchmarks. Keep in mind we are doing these numbers without a BDC, all of our salespeople handle incoming calls and internet leads, but that is hopefully about to change. We had some good number in 07 when we had a BDC. July 2007, 81% of leads contacted, 44% appointment set, 92% shown and 54% sold. March 2008, 91% contacted, 40% appt set, 90% shown and 105 sold or 42%. BDC sold 49% of all sales for the dealership. These are random months I pulled. Man we were good at getting them to show. Thanks Craig. Anyone else have any input?
We generally see high performing stores closing 50% of their phone appointments, but 65% of their internet appointments that have shown. The exact reason is as craig suggests. By the time you have an internet customer show up, you have already done some what of a more in-depth online needs assessment, built a relationship and many of the lookie-loos have weeded themselves out of the equation.Those are the benchmarks I would strive for. Naturally as craig suggested, they will fluctuate, but those are solid benchmarks to shoot for.Well done on tracking this stuff... youre ahead of the average stores out there. NIce job.
Mar 27, 2013 (Last Edited: 2013-03-27 18:13:23)
Thank you Jared. I appreciate your expert advice.
Mar 28, 2013
It all depends. If you are transparent in your pricing and information you should close a lot higher percentage of your appointments that show. If you are old school (you need to come in to get the best price) then you will close them at a lower ratio. We close our appointments that show at over 50%, but we are free with our info. We quote price, payments, trade-in values etc. before the customer shows up in the store.
Mar 29, 2013
Sam are you guys Negotiation-Free?
I don't know where you guys get your numbers from, but I spent years "stubby penciling" ROI and it wasn't easy, but was fairly accurate. Our average for 2012 was 14% closing ratio (lead volume to sales), 32% lead to appointment, 57% appontment to show, and 65% show to close. Since we incorporated a new CRM, these numbers have dropped....how can you sell more leads than you set appointments for? Bottom line, garbage in from your sales staff, erroneous out for ROI. I have tried for years to implement source cards in the F&I office, and has finally taken root in the past six months. Amazing how the numbers change when your customers tell you how they heard about you.
I find it interesting that the large dealerships are not starting to use social tools to harness information off of their own social channels. Seems to me that these leads would be more relevant and ultimately less expensive than buying leads.....harnessing social seems to be a potential hot spot for car dealers...I would venture that most people go on line to research, with the right tools and the right filters...they could bring in leads for their own dealerships without buying them from outsourced companies.
Just to clarify John in July of 2007 we sold 54% of appointments shown but our closing percentage of total leads was 18%. In March 2008 we sold 42% of appointments shown but 14% sold of total lead count. This was combining Internet and phone. I hope this clears things up for my stats. I really appreciate your input!