Major issue with this new dealership I work at

[ed.brooks]

 

[ddavis]

Ed,
I have seen the 1.3 statistic, also. That makes closing the customer, when they come in, more critical. If you don't close them, the next store will. The statistic showing no usage is three years old. I'm seeing 90% and even higher for the luxury segment.

 

[Alex Snyder]

It is true that shoppers are physically visiting less dealerships, but it also true that closing ratios have not significantly risen on the whole. Of course, there are always dealerships who are the exceptions to the latter part of that statement.

I'm hoping this will change in time. It does take a while to get an industry to change with the times.

As for this thread the discussion on closing ratios and decreases in parking spot hopping, but where are we at in answering the original question?

I noticed Mauricio doesn't have a dealership listed under his "Company" area anymore.​

 

[ddavis]

It is true that shoppers are physically visiting less dealerships, but it also true that closing ratios have not significantly risen on the whole. Of course, there are always dealerships who are the exceptions to the latter part of that statement.

Alex, you aren't going to pull a big wagon with a bunch of ponies

 

[Jerry Thibeau]

I spoke to a CRM company and had them look at some data for me. Their top 10 CRM users were averaging low 30% close rates on fresh walk-in traffic. So imagine what the middle of the pack looks like.

If you look at Ed's chart above, 17% of customers do not using the Internet. Those are the customers that you're going to close at 20% rate.

A lot of the 62% crowd is going to be considered a fresh up as well since most salespeople don't properly source their customers, and those people are going to have a lower closing ratio on first visit.

I would also challenge the 1.3 number since those customers purchasing used vehicles are going to look at multiple options before making a decision.

 

[yagoparamo]

Jerry, Alex, Doug,

Is there a number you all could agree to?

I'm really looking for a consensus that can be used as a guideline.

 

[JohnH]

It's hard for me to judge closing ratio, since I do not know if by closing ratio they mean a deposit or a delivered car (Used cars). Our U.S. store does not take any deposits on cars and delivers cars on the same day of the sale (Spot cars). Our Canadian stores take a deposit and then deliver's the cars. Between the deposit and the delivery there is fallout ratio (Cancellations).

So what do we define as a closing ratio?

 

[ddavis]

I spoke to a CRM company and had them look at some data for me. Their top 10 CRM users were averaging low 30% close rates on fresh walk-in traffic. So imagine what the middle of the pack looks like.

Jerry, My old internet department did 70% of the business with far better closing percentages as I said earlier. As you said, the floor salespeople don't log many of their ups but all of them go on the sales log.

If you look at Ed's chart above, 17% of customers do not using the Internet. Those are the customers that you're going to close at 20% rate.

You are absolutely right. They don't use the internet. They are like all of the customers (shoppers) when NADA came up with that statistic 30 years ago.

I'm seeing anywhere between 1.3 to 1.8% as the number of stores visited.

Yago, I've been trying to get that number for about a year.

John, a car isn't sold until it is delivered.