Monthly Closing Ratio

Brad Wise

When figuring monthly closing ratio do you divide number of total internet solds ( in that month) against incoming fresh leads ( for that month only? )

In other words an internet sale that orginated in a previous month would not count even though it was sold ?

Our course when doing a YTD analysis it all would catch up but the manufacture and 20 groups use the monthly closing ratio .

Brandon McNett

I use sold lead that was closed during that month from the designated source....not only if it "originated" in the month that I'm reporting.

Leads = from the month reported

Sold = Sold during month reported

Everyone just has to understand that it's not everythign is done and completed every black and white end date...but the activity that happened during that month is black and white.  


Hope this makes sense!

Brad Wise

Brandon - are you saying that in order to compute your monthly closing ratio .

1 month leads /1 month sales  ( regaradless if the sale came from a lead recieved two months ago?


Brandon McNett

Correct.  My view is that leads and sales don't have finite stop dates because we need to do reporting.

Otherwise your data will be skewed to the low end and in accurate until you pull 3 month / 6 month / 12 month data.

I worry about closing the opportunities and what the % is for that, not necessarily during a designated time frame.


Brandon McNett

By the way, I don't think there is a right or wrong way to do it.  As long as you know what your data is, what it's measuring, what your trends are and HOW TO GET BETTER, that's the most important thing for data. 

It is nice though when doing comparisons, because apples to watermelons is never fair!

Chris K Leslie

Depending on the CRM you are using you might be able to key off variables like "insert Date" which would compare the 2 things within a certain date range. 

I like looking at the number for created and sold in the same month because what I found is that the majority of leads that are sold are sold within 7 days of the person submitting the lead. Closing ratios past that are very skewed and very unreliable.

So I know that if I can affect anything in those first 7 days. I will have a better chance of the customer actually buying the car.. 

If you are looking at lead source close rates as a means to decide of certain ad channels are working. Opening the allowable time gab for an event to be active is not a very representation of the channel that may have brought that customer back into the funnel. 

I don't agree with folks who say you need to keep events/leads open for 60, 90, 120+ days.. All that is, is busy work. Let your marketing reel someone back in but lose out events fast and often. 

I hope that helps, I tend to ramble sometimes. 

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