It’s All About Conversions Silly
Posted by admin
Maybe I’m old school or like simplicity too much. It seems many auto dealers continue to ask for more and more validation of leads or at least that is what many brokers / wholesalers present as an issue to pure lead generators.
While lead quality is important, I don’t think many auto dealers look at the most important and telling piece of information about the success of their Internet auto leads….CONVERSIONS
Conversions = The number of leads that convert into the sale of a vehicle. If you purchase 100 leads from lead provider A, how many resulted in the sale of a vehicle?
I’m trying to pound this into some of our retail customers, but it’s difficult to get people to change. Tracking your conversions requires that you have a CRM or method of tracking your lead sources and then ultimately tying the sale of a vehicle back to the originating lead source.
For auto dealers that have CRMs, a salesperson, administrator, or some designated person needs to update CRM records to properly close out a sale so that accurate reporting of “sales by lead provider” can be determined.
Knowing what your conversion rate is helps the auto dealer solve many business issues:
- What is my conversion rate for each lead provider?
- Do I increase my advertising budget with lead provider A,B, or C?
- What is my average cost per sale for each lead provider?
- Do I turn a particular lead provider off?
- Do I need to look for new lead providers?
By auto dealers failing to know what their lead conversion rates are they are subjecting themselves to a higher cost of services. There are many third-party services popping up that score leads, and add cost to the overall cost.
Let’s keep it simple, if a lead provider does not have a measurable conversion rate that adds to your bottom line stop doing business with that lead provider.
In closing, if an auto dealer knows their conversion rates it is possible to eliminate daily or monthly lead caps.
What are your thoughts on lead conversion rates? Does your dealership currently track conversion rates? Share your thoughts with our visitors.
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