Home > Newsroom > Articles > Fine Tune Your Internet Lead Strategy

News Articles

December 2007

Fine Tune Your Internet Lead Strategy

1. Set realistic expectations - and abide by them.

This will allow you plan by what you can reasonable achieve, not to spare you the disappointment of falling short. Use your expectations to develop the best possible plan and modify it as needed.

For example, let's say that you've started out with a small Internet department consisting of two full-time sales reps and the expectation that, a few months down the road, they'll be averaging 10 sales a month. Let's say that they ramp up quickly and meet this goal. This doesn't mean that you can double their leads and expect twice the sales. More leads may overwhelm them and result in little more than an increase in lost opportunities. You may need to take other productivity-enhancing steps before increasing leads - or it may simply be time to hire more staff.

2. Take your follow-up process seriously.

Wouldn't it be great if every lead either bought a car in the first week or told you in no uncertain terms that they weren't interested? The fact is, though, that leads have their own timetable for buying: some in the first month, some in the second, and a significant percentage in the third. As a result, writing off any lead in the first three months - or even later - is like throwing money out the window.

Since we know that all leads are different, there are two main areas to keep in mind. First, you need a rigorous follow-up process, this keeps your sales reps focused on leads until they're dead as doornails. Second, ask your reps to treat older leads with greater care. Too often, dealerships think they're keeping older leads in the loop by sending them automated emails. Regular, personable emails or voicemails that reflect real knowledge of the customer's needs can make an enormous impact, bringing someone in months later simply because they know they'll be recognized and understood.

3. Continuously measure the effectiveness of every piece of your Internet operation.

It's not enough to be able to say that your Internet department sold 27 cars last month. Yes, perhaps those numbers justify its existence, but what do they tell you about what you're actually doing?

You need to monitor your Internet department's performance from every possible perspective. One of the best ways of doing this is in terms of lead source. What's happening to leads that come to you from organic search? Paid search? Third parties? A poor close rate doesn't necessarily mean that the source is not good; sometimes it points to a problem with your process, or with the ad campaign that's producing the leads.

Close rate isn't the only important metric, of course. Gross per sale and cost per sale are two other ways of monitoring the performance of your Internet department' and overall Internet strategy. The conclusions aren't always self-evident; all these metrics provide material to which you should apply your best business thinking.

4. Work with the floor sales team.

To an extent, competition between your Internet team and the floor team makes sense - especially if it helps you establish the validity of your Internet strategy. But, for the long term, you'll need everyone's buy-in, and you'll need to create a reality in which everyone benefits from everyone's success.

This doesn't mean the establishment of a socialist state--or even a big, happy family. But, at most dealerships, the Internet department is going to need the floor sales team to work with some customers and close some sales. Making them feel like outsiders or second-class citizens is a sure way to put a big dent in your Internet results. Particular circumstances can vary tremendously, and so it's hard to offer specific rules for creating cooperation. But you'll need it, so do what it takes to get the support of the men and women who handle the more traditional side of your automotive business.