Lead count vs lead conversion

Bart Wilson

Which metric do you give more weight to?  Lead count or lead conversion?

Jignesh Vaghasiya

Conversion Rate = Total Number of Sales / Number of Leads * 100

Example: Let’s say you made 20 sales last year and you had 100 inquiries/ leads. Your sales to lead conversion rate would be 20%.

If you’re tracking conversions from website leads, your formula looks like so:

Conversion Rate = Total Number of Sales / Number of Unique Visitors * 100

Example: If you made 20 sales in a month and you had 2,000 unique visitors to your site, your conversion rate would be 1%.

Marc @ Autobahn Academy

 

Dealer A closes 30% of 10 leads for 3 sales

- Most likely handling BOFU (bottom of the funnel) leads

- The overall performance is great in every step of the sales funnel.

- Struggling to increase sales count

 

Dealer B closes 4% of 100 leads for 4 sales.

- Most likely handling entire funnel

- Struggling with keeping appointments

 

Dealer A has 7.5X better lead to sale conversion, but Dealer B sells more cars. If you look at % alone, Dealer A is superior.

But in terms of the end goal, Dealer B has the edge.

 

If I had to make only ONE choice, I would go for the lead count, and try to build upon it.

 

Much easier to close more deals when the volume is there vs no volume.

Derrick Woolfson

Lead count, however, quality vs. quantity. The most important lead source is your dealer website leads. So if the volume is low, despite a decent conversion rate, I would look at VDP views, exit pages, and your overall AdWords results. 

Mark Rask

Both are important 

Bryant Gibby

I'm putting in another vote for lead count. I love the insight @Marc.

You can never have enough leads (even if a certain % of them are total garbage). At my stores, I always wanted my guys to feel as busy and productive as possible. I am a firm believer that a regimented process will drive results. Changes to your internet lead handling process will help drive that closing % upward over time.

Adding to Marc's comparison, dealership B also has 96 unsold leads at the end of the month in the pipeline as opposed to 7 for dealership A. You should be have an aggressive long-term follow up cadence with these leads for at least 120 days. That will yield additional opportunities and more car deals :)

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