If you’re not hitting your close rate goals, going through a diagnostic of every step in your sales process can give you a precise reason why. By asking the right questions, you can determine what’s working and where you need to make adjustments. Here’s a check list of questions we go through when our dealers aren’t getting the close rates they want. This check list was compiled from our collective experience in working with thousands of dealers.
Is your response time faster than 24 hours?
Responding to an Internet prospect who submits a lead within 10-20 minutes is the sweet spot – in most cases, they’ll still be online and in the “buying mood.” If within 10 minutes seems impossible for your team, strive to respond within the first few hours, and definitely in no more than 24 hours. In addition, have staff available during weekends or off hours so your prospects don’t have to wait. Most Internet prospects submit leads in the middle of the day (their lunch breaks at work) and after 7 p.m. (after dinner time) than any other time. Be sure to use auto responder emails so, no matter what, the prospect gets an immediate communication from you.
ISMs should employ the LIFO method when it comes to responding to Internet leads – that’s “last in, first out.” Acting quickly on new leads is critical. If a lead has been sitting over the weekend, then it can wait another 20 minutes. But if it just came in, you should launch an immediate response. So, always act on the freshest leads first.
If you’re not clear how quickly your Internet team is following up with its leads, you should be able to get that information from your lead provider. A good lead provider will regularly conduct consumer surveys to make sure its customers are getting responses from dealers. Your lead provider should be able to tell you when consumers reported that they were contacted, as well as the quality of the communication with the dealer.
What is your appointment-to-lead ratio?
We always look at this ratio: appointments set-to-leads. Unfortunately, many ISMs don’t know the answer to this question. It’s important to know because if your team is not setting the appointments, the problem may be in your response process and interaction with prospects. If you are setting appointments, but the prospect is not coming in, your business proposition is not compelling enough. You should be able to set appointments with at least 25% of your leads, and ideally, 60%-70% of your appointments should show.
Do you have ISMs who are dedicated only to Internet prospects?
Passing out Internet leads to floor sales people may be counter productive because when it comes to selling to Internet customers, the approach should be different from selling to floor ups. Internet customers are usually looking for a different experience. Also, if a lead is passed around to different sales people, the relationship with the customer gets weaker, and they’ll be less likely to buy. Typically, when leads are passed around randomly, follow-up decreases to about two phone calls and no one is really accountable. Furthermore, according to J.D. Power and Associates, having sales people who are dedicated to Internet customers yields the highest profit per vehicle sold.
How are your communication skills?
You can be extremely dedicated and have the best intentions – but failing at the basics can cause you to lose a sale. “The basics” means having no grammatical or spelling mistakes in your emails and leaving voice mail messages that are clear and concise. When leaving your phone number, say it twice and speak clearly and slowly. Seems obvious, but it’s amazing how many dealers are failing at the basics.
And speaking of voice mails – leave them. We all know that people screen their calls, so don’t be afraid to leave a polite voice mail. A consumer may screen their calls, but still be ready to buy and willing to call you back. When it comes to communication, every ISM should take full ownership of their presentation.
Are you giving your Internet prospects something to build trust, such as competitive upfront pricing?
The most important thing to do with your Internet prospects is to get them to come into the dealership. The key is to build trust. By offering special pricing and incentives to Internet customers, you make it worth their while to come in and meet you in person. As for pricing, if you don’t want to be locked into a price, offer them a range with various packages. If you’re pricing is too high, it could be worse than not giving pricing at all. Give a range, but give something.
Do you work each lead until it’s “dead”?
While it’s essential to contact your leads as soon as possible, you shouldn’t just drop older leads. Even if a prospect does not buy right away, it’s important to continue to market to them. While some ISMs close their leads in about two weeks, the overall average is more in the range of 45-90 days. So, continuing to communicate with these prospects keeps them engaged until they’re ready to buy.
How’s your pipeline?
Leads come in at different stages of buying readiness. Understanding where your lead is in their buying cycle should dictate your sales approach. Having this information will also enable you to manage your sales pipeline. Close rates may seem low at certain points if you do not have a well-managed pipeline. Create a long term follow-up schedule in your CRM/lead management tool or Outlook calendar, and keep your pipeline full.
Do you use mailing campaigns to communicate with your prospects?
While email is the most cost-effective way to communicate with your Internet prospects, sending Internet customers coupons and incentives via regular mail campaigns can be an effective tool. Most often you will get a mailing address on your lead form, so using that information as another way to communicate can be a great way to capture Internet customers’ attention. Always transfer your Internet prospects’ information to your direct mail database.
Look for Part II of the Check List next month!
Rao Wu is the Sales Director for Dealix Corporation.
Jeff Ezeir is a Senior Regional Sales Manager for Dealix Corporation.
Elizabeth Alvarez is the Manager of Dealer Operations for Dealix Corporation.
Kristen M. Stanton is the Marketing Manager for Dealix Corporation.
