In this month’s Top 10 List we took a look at the vehicles that had the highest close rates during the third quarter 2003.  There are many variables that affect the potential for leads to end in a sale: lead quality; the skill level of the ISM; incentives; the level of support from the dealership and OEM; etc. However, we have a theory about another variable - the build complexity of the vehicle.

The level of options available in certain vehicles, or lack thereof, may also have an impact on Internet lead close rates.  While close rates for all vehicles are up, the F-Series pickup truck, for instance, did not show up on this list.  With its seemingly infinite number of option packages, the Ford F-Series seems harder for dealers to close quickly, as many customers are very specific about the various packages they want, and the odds of the dealer having that exact vehicle in stock can be lower.  By contrast, the vehicles with the highest close rates, such as the Acura TL, are “buy them right off the rack” type vehicles.  Honda’s production culture – efficiency at the plant level – plays into this theory. Notably, six out of ten vehicles on the list are Honda owned.

When build complexity is low, it seems that it’s easier to match the vehicle to multiple consumers, thus increasing the likelihood of a quick sale.  Most customers decide on the car they want first and then pick from the option packages available.  We theorize that option packages are not deal breakers, but car design, brand image, and price are.  We don’t know of many consumers who say, “I really must have OnStar, now which vehicle makes have that available…?”

While it's true consumers demand choices, especially Americans, there is something to be said for simplicity.  It’s sort of like what a friend of mine calls “The Happy Meal Theory.”  When you take a bunch of kids to McDonalds, do you ask, “What do you want?” And then the first kid says, “I want this and that.” And the second kid says, “I want this, that, and the other.” And the third kid say, “I want the other, and not this.” And suddenly you’re a waiter at a five-star restaurant. Or do you say, “Do you want the Happy Meal or not?”

About the Study
The Dealix Vehicle Close Rate Index^SM is a weighted index based on the number of Internet sales leads that are generated from the Dealix Lead Trading Platform^SM and result in a sale.  The vehicle with the highest close rate is given a perfect score of 1000 and all subsequent vehicle close rates are weighted against the leading vehicle.  Primary data is derived from email and phone surveys conducted on customers that Dealix Corporation delivers to its dealer partners as Internet sales leads.  The smallest accepted sample size per vehicle was 100 surveys.  This study does not intend to represent data for close rates for all vehicle sales leads.  Vehicle categories included in the study were cars, trucks, SUVs, and minivans.  This report is brought to you by Dealix Business Intelligence^SM  (DBI).