Performing regular diagnostics of your sales process is the best way to find any weak links in the chain and be on the road to higher close rates. These diagnostics can occur on a variety of levels. At the metrics level, it means understanding key ratios, such as close rates for each lead provider you use or appointment show ratios. Diagnostics can also occur on a more philosophical level. For instance, making sure that your entire Internet team shares the same vision and the same objectives. The key is to conduct regular assessments so you can achieve the goals you set for yourself and your department.

Do you have enough ISMs to handle the lead volume in your market area?

A good rule of thumb is that one ISM can handle about 100 leads per month. An ISM that is overloaded cannot properly manage their leads, and they’ll be compelled to “cherry pick” leads and you can lose sales. 

If you have a lot of leads available in your market area, it’s best to grow your team so that you have enough ISMs on board to respond to that consumer interest. Different sales people can handle a different number of leads. You should know the threshold of effectiveness for each ISM.

Are you only getting leads for vehicles you have available and turning off leads for vehicles that are hard to get or have a poor history of Internet sales?

Your lead provider should be flexible enough that you can request leads only for those vehicles you have to sell.  You shouldn’t have to pay for leads that you have less of a chance to sell to.

Are you getting leads from territories that are your prime selling areas ?

Having a clear understanding of your optimal sales territory is essential. This doesn’t mean you have to stay within a small, local territory; some dealers do very well with leads from a wide radius. For instance, consumers who prefer luxury cars tend to be willing to drive further to take a test drive. Your lead provider should be flexible enough to adjust your territory according to your needs and to be able to offer the volume of leads you require in your optimal market area.

Do you know the close rates for each of your lead providers?

Tracking the results from your leads by lead source, whether it be your OEM, your own site, or different third party providers, will help you weed out weak performers and you’ll know where to direct your Internet budget. Make sure each ISM handles leads from a variety of sources.

Do you know how to use your CRM/lead management tool (LMT)?

Many dealers have CRM or lead management tools, but unfortunately, they don’t or don’t know how to use them to their full capacity. Properly using your CRM tool to its full potential can take care of tracking the important metrics you need to see, as well as your communications with prospects, etc. Then you can take full ownership of your sales process and fine tune the areas that need to be improved. Handling 100 leads per month is one thing, but as time goes by, seasoned ISMs are really managing multiples of hundred of relationships with Internet prospects. Your LMT will help you keep your sanity and be more effective. It’s also important to keep in mind that, even though there are incredibly complex systems available with multiple functionalities, a simple LMT system may be all you need.

Do you have crystal clear objectives?

It’s critical that everyone in the Internet department knows exactly what their objectives are and that this awareness is part of the overall dealership philosophy and culture. When everyone knows their short and long term goals and the steps they need to get there, productivity increases tenfold. It’s essential that your GM has a clear picture in mind and communicates this to the team. 

Are you seeing reality? In other words, are you fanatical about tracking metrics?

If you want your Internet department to be top of the line, you should strive for a high level of awareness of the hard metrics that relate to each step in your sales process, from appointment sets to appointment shows, to close rates, sales cycle times, grosses, and more. This will help you see reality versus basing decisions on a hunch. Then, you can do a clear diagnosis of when and where problems exist and correct any weak links in the chain, with precision. Then you’ll be on your to the close rates you want.

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.