Looking at just closing ratios is a mistake. Judging a person, service or lead source simply by how many sales are made misses the mark in determining value. At the same time making it more difficult to see areas of focus for improvement.
We can all beat our chests and shout from the mountain top how good we are. Or we can all blame the weather or the start of college football about how bad we are and that next month will be a better month.
I recommend adopting the 4×60 rule.
(introduced to me by Brian Pasch)
What it does:
Gives a systematic approach to tracking and analyzing internet leads.
Who does it:
Managers use the system to examine both a person working internet leads and the internet lead
source its self.
Each week, every 2 weeks and each month.
How is it done:
By taking the metric set we use (number of leads vs number sold ) and expanding it to include those important steps needed in making a sale. Namely, contact rate, appointments set and appointments shown. By tracking these metrics, a manager can better grasp how a lead source
or an internet salesperson ( or BDC rep ) is performing or not performing. Armed with the information a manager can intercede and make adjustments, conduct training and over watch the lead to a positive conclusion. A car deal.
60% APPTS SET
60% APPTS SHOWN
Speaking to, establishing communication with sixty percents of the leads.
Of those that contact has been made, set appointments with sixty percent of them.
Those appointments set should result in a sixty percent show ratio and finally, sixty percent who
come in buy.
Using these tracking standards results in a thirteen percent close ratio.
That is very reasonable, attainable and will give you a healthy ROI.
After a good initial response making contact with the person should be the main goal. Plain and simple you gain so much information about the prospect by being able to
speak with them. The first three days should be multiple attempts by all means available, phone,
text, chat invite, email. Set the expectation that you will continue to try and reach them. “I will
give you a call later this afternoon if I do not hear from you before then”.
Getting someone to agree to meet with us, to visit the dealership means we are able to convey to the potential customer all the information they need and require. This is where objections begin to surface and we must be prepared to quickly and positively deal with them.
Taking the right steps to see that a person who has set an appointment actually comes in is usually a team effort. It starts with making clear where the dealership is located. Telling the customer what to expect when they arrive. This is often overlooked. There is a certain amount of fear for a customer coming into a dealership. Sharing what they can expect will go a long way to dismiss those fears. Everything from where to park, who to ask for and what the first few things you will cover with them on their arrival. Having things prepared for their visit like keys to vehicles, any information about the vehicle.
Introducing a manager on their arrival who can further make them feel welcome and comfortable.
Investing in doing the prior steps leads to higher closing ratios once a person comes into the dealership.
One of the biggest problems we face in tracking the 4×60 is that some CRM’s do not allow for “contact percentage”. This is something I am still working through in our stores. The focus is trying not to make it too hard to accomplish. Keeping a seperate spreadsheet can be too much to ask. I have made several inquaries with our CRM and had not responce. I am sure this will change as the 4×60 comes to be more accepted and put into place.
The reason the 4×60 works. The real value is giving us actionable data on the substeps to selling an internet customer. Allowing us to drill down to specifics in performance and keep our internet departments improving. For the individual, it gives direction along a path to success that is easy to follow.
Thanks for reading. I look forward to your comments and discussing the 4×60 rule.