Dealers are spending more and more on new leads, but what if I told you that you could sell more using the leads you already have?
Every dealership has a sales process, but more often than not, it isn’t followed. Most dealerships fail to consistently train on their process, and many core steps are lost in translation. Without systematic training, it is impossible to inspect what the team is doing—which in turn, makes it impossible to determine if you are optimizing your leads.
Before you waste thousands more on new leads, inspect and improve your internet sales process using these four steps:
- Contact: You should establish two-way communications with 60% of the leads that come into your CRM.
- Appointment: Of those engaging in two-way communications, 60% should set an appointment.
- Show: Of those consumers who set an appointment, 60% should show.
- Sold: 60% of the consumers who show should end in a sale.
This four-step process makes up the 4×60 spreadsheet. Using this process leaves you with a 13% closing ratio as shown below.
Steps one and two can be handled by a call center, but the fate of steps three and four lies solely in the hands of your floor team. By setting a 60% performance goal for each step, you can effectively measure your training and determine which areas need help. Using this spreadsheet, you can empower your team to increase sales with the leads you’re already bringing in.
This is the start of measuring a process and determining where additional training is needed. Below, you can see a dealer group’s performance over a 90-day period.
If they had focused on improving their appointment ratio from 23.24% to their goal ratio of 36%, their stats would look like this:
If we don’t have a process to look at each step of the work flow, we do not have a process for improvement. So remember:
- Work with your team to combine current store efforts with best practices to achieve 4×60’s if not greater
- Develop a customized follow-up schedule to increase KPIs
- Work closely with each BDC manager to train and develop the department
- This will not be a cookie cutter solution—it’s a measurement tool
A 60% ratio is certainly attainable for each of the four steps. Try setting up your spreadsheet and see where your team’s training process could use some improvement.
If you need further assistance, or want to share your results, send us a message!