Does geography play a role when it comes to how well dealers close their Internet leads? This month we took a look at the major metro areas of the U.S. and compared average Internet lead close rates among dealers in each area.  We also considered whether there is a correlation between high Internet usage among the population (the most “wired cities in the U.S.”) and lead close rates.  After all, a greater percentage of the population is online in these cities, and automotive is a favorite category among Internet users.  In cities like San Francisco and Boston, the hypothesis rings true: Boston, the fourth most wired city, topped the list with the highest close rates; and San Francisco, the most wired city in the U.S., came in third in lead close rates. 
 

Where it gets interesting is when dealers in cities that don’t make the “most wired” list still have high close rates.  Dealers in Denver, Miami, Cleveland, and Houston, for example, deserve honors for defying the odds.  Despite their cities not making the “most wired” list, these dealers are adept at selling vehicles via the Internet.  By comparison, dealers in Austin, Washington D.C. and Las Vegas, where Internet usage is high, don't make the top 10 when it comes to closing Internet sales.  Are these dealers overlooking a golden opportunity?

Dealer Close Rates by Metro Area Index
Rank	Metro Area	Close Rate Score
1	Boston-Worcester-Lawrence, MA	1000
2	Denver-Boulder-Greeley, CO	919
3	San Francisco-Oakland-San Jose, CA	904
4	Chicago-Gary-Kenosha, IL-IN-WI	890
5	Seattle-Tacoma-Bremerton, WA	846
6	Cleveland-Akron, OH	838
7	Houston-Galveston, TX	838
8	Dallas-Fort Worth, TX	831
9	Miami-Fort Lauderdale, FL	750
10	Los Angeles-Riverside-Orange County, CA	735

Most Wired Cities – Internet Usage
1	San Francisco, CA
2	San Jose, CA
3	Austin, TX
4	Boston, MA
5	Seattle, WA
6	Salt Lake City, UT
7	Washington D.C.
8	San Diego, CA
9	Las Vegas, NV
10	Los Angeles, CA

 Source: Yahoo Internet Life, 2002.

The Close Rates by Metro Area Index is a weighted index based on the average close rates for Dealix leads in the major metro areas of the U.S. Results are derived from in person phone surveys conducted over the last quarter of 2003. The smallest sample size was 200 surveys.  The metro area with the highest dealership close rate is given a perfect score of 1000.  This study was conducted by Dealix Business Intelligence.

Kristen M. Stanton is the Marketing Manager for Dealix Corporation.