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From: Jared Hamilton
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Bryant Gibby

Bryant Gibby Used car manager

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National averages for percentages on internet leads

     We have been making some changes to our internet process lately. We are evaluating our closing percentages to make sure we are capturing enough deals during each phase of the buying cycle. We do a really good job tracking accurate data, so I feel like our closing percentages are close to accurate.

 

     The problem that we are having is that it has been 5 years since we have done a complete overhaul of our internet process. We feel like the data for national averages that we collected back in 2006 is potentially less accurate than it once was.  Here are the #'s that we have according to Polk reports:

 

  • 56% of new vehicle leads will purchase a new vehicle
  • 42% will purchase a vehicle in less than 30 days
  • 16% will buy between 31-60 days
  • 10% will buy between 61-90 days
  • 32 % will buy in 91 days or more

 

     I was hoping you guys could clarify to see if those closing percentages are still accurate.  Also, I had a few more questions:

 

    At what point in the buying cycle to they eventually switch interest to a used vehicle?

    What % of the leads actually buy the same make/model that they inquired about?

    Do you guys offer any giveaways at any point of the internet process to entice them to make a decision sooner?

Craig Waikem
OK, the following data is provided by Jared at Driving Sales...this data will answer you questions at the end of your post...PERCENT OF CLOSED LEADS. 0-30 DAYS 43% BUY INTENDED MAKE 35% BUY OTHER MAKE 22% BUY USED (ANY MAKE) 31-60 DAYS 21% BUY INTENDED MAKE 29% BUY OTHER MAKE 50% USED (ANY MAKE) 61-90 DAYS 18% BUY INTENDED MAKE 31% BUY OTHER MAKE 51% USED (ANY MAKE) 91+ 13% BUY INTENDED MAKE 34% OTHER MAKE 53# USED (ANY MAKE)
Craig Waikem
We take away two important things from that data 1. After 25 days our selling process really starts to focus on offering the customer pre-owned options or switching to other makes because we have 7 different franchises. 2. It goes to show that car buying is STILL an emotional process. They can request quotes all they want, but once they visit the showroom, only 43% buy the same MAKE let alone MODEL (and the % keeps getting lower 30+days on). Internet Pricing = Advertising.
Craig Waikem
We also give away $10 gas cards for appointments after 50 days and have had little success. I think I want to sign up for Hook Logic, DealerRefresher had some good feedback on them. Check it out.
Dennis Galbraith
Useful stuff Craig. Thank you so much.
Craig Waikem
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