All of us are searching for an ad campaign which just sells cars with little to no work. Unfortunately, it isn’t likely you will ever find one. It’ll take a ton of work to convert special finance, as well as buy-here, pay-here leads to sales. But, you may at least make it seem simple by concentrating on the individual aspects of the process of lead conversion. Let us look at the key elements and how they’ll affect your ROI (return on investment).
Several factors will come into play here, like offer, target audience, competition and timing. Also, what you do to accomplish a meaningful response will affect the aspects which follow. For instance, if you offer gifts or opportunity to win a prize, you might boost response, yet you may also reduce your closing ratio.
There will include multiple documented instances in which dealers have utilized deception to boost their response rate. It isn’t a good option, because it may lead to lawsuits and costly fines. Worst of all, deception gives your dealership a poor reputation. This is going to have a negative impact on return on investment for all of your advertising.
There is a collection of articles on dealers who receive fines over $200,000 because they believed they could get away with advertising that was deceptive. Do not do it! It is more effective, safer, and smarter to target the proper prospects using the proper offer. I have seen BHPH promotions accomplish a 10% response rate without giveaways or gifts of any kind.
You should measure the overall amount of leads against the amount who actually were contacted by your BDC or sales staff. The first contact is your best bet to set an appointment up. It’s where the real work will start. I cannot tell you how many tales I have listened to about a dealer who got a good response, yet didn’t sell any vehicles. And why? Because his sales staff did not contact the respondents.
You’ll pay good money to produce leads; therefore, do not allow anyone to drop the ball regarding follow up. Call often and early until you reach your prospect. If you actually want to boost your contact ratio, have a call center or employee in place to answer calls. You should set up as many appointments as possible on that first contact, and you are on your way.
For all of the prospective buyers who called, how many agreed to an appointment? It’s a critical figure and it must be tracked. Develop a script everyone uses to request an appointment, and stick with it. Role play with the staff to practice, as well as refine your verbiage. It’s where good discipline and training make a huge difference. Keep in mind, practice does not make perfect, yet perfect practice will make perfect.
How many of the appointments showed up? If you did an excellent job at setting your appointments, you’ll do well here. It’s an area in which it’s okay to offer an incentive for keeping the appointment. You can offer a $10 gas card simply for coming in. It’ll be worth the expense. Confirm the call prior to the appointed time. If they do not show up, immediately do a follow-up call. Check if they are willing to reschedule. It isn’t likely you will sell any vehicles to individuals who never make it to the dealership; therefore, do everything possible to get them to arrive.
I am certain you already are pretty good at this, because you’ll do it on a daily basis. It’s an area which will require constant training and tracking, irrespective of which source of advertising produced the lead. Having the correct mix of lenders and vehicles makes boosting your closing ratio probable, yet the ability and desire to close sales will make it a certainty.
Gross Per Sales
As with the first 5 elements, gross per sales will contain its own special set of factors. Did you purchase the proper cars at the proper price? Did you have all of the systems in place in order to match every buyer to the correct vehicle and the correct lender? We have seen dealers increase their average gross by over $1,000 merely by implementing software which dealt with the process of matching for them.