At the end of every month, a good habit to get into is analysing your confirmed lost leads. What is a confirmed lost lead? A confirmed lost lead is a closed opportunity; meaning the lead has been marked as lost, and additionally confirmed by CRM that the lead is indeed lost for whatever reason.
Losing opportunities at any point in the sales funnel is frustrating. Yet despite the frustration, there is a lot you can learn from lost leads and prospects. Rather than closing the books and moving on to the next month, leading dealerships take the time to analyse lost prospects & leads to identify key learnings. If done correctly, this exercise can reveal major opportunities to improve your sales performance and processes.
Here we take a look at three key sales insights you can uncover that will improve your sales numbers in the future.
1. Improve effectiveness of marketing campaigns: A comparison analysis of your won and lost leads can very quickly tell you which campaigns are performing and which aren’t. Particular sources & campaigns tend to bring in higher quality leads for dealerships compared to others, meaning you should be spending more of your marketing budget on sources that are more likely to convert to sales. If the majority of your confirmed lost leads came from LinkedIn, and the majority of your sales came from Facebook, you know to shift around your budgets for future.
2. Know your competition: If your dealership sales team is tracking some sort of lost lead analysis program (which they should), you will quickly be able to learn where confirmed lost leads are going for their new car needs. Sales consultants and CRM should be recording the reason behind every confirmed lost lead, which can give you a very intelligent snapshot into where you are losing sales. In a recent aureso case study, we found astounding numbers after running a Confirmed Lost Leads Report.
A Volkswagen dealership was delivering around 500 new cars a year. After running a lost leads analysis, we found 123 people went onto buy the exact car they showed interested in from another dealership down the road, and 146 people couldn’t buy a car due to stock availability / lead time. This dealership was losing over half of the annual deliveries they brought in due to reasons within their control.
3. Refine your closing: Every good sales team has a structured, defined sales process in place to move prospects through the sales funnel. Certain information is needed before a prospect is moved from one stage to the next. When reviewing lost prospects, it’s helpful to reevaluate this criteria. For example, you may discover that sales consultants who push for a test drive had a higher prospect to sales conversion ratio compared to sales consultants who had an overwhelming funnel of lost prospects. Therefore, as a sales manager you could then make it mandatory for sales consultants to push a test drive before moving a prospect to the closing stages.
As you uncover the factors that separate your wins from your losses, you will develop the ability not only to go after more of the right opportunities, but also to know when a deal is headed in the wrong direction before it’s actually lost, making it possible to correct its course.