One of the biggest goals for any dealership is to convert leads into prospects, prospects into sales, and, eventually, repeat customers.
More often than not, however, this is easier said than done. More than 63% of marketers say that generating traffic and leads is their top challenge and only 25% of leads are considered legitimate. No matter how you slice it, this kind of conversion hurts the bottom line. Every lost lead is lost advertising money, as well as one less sale.
So how do you stop losing sales, advertising money, and increase your monthly KPIs? In many cases, lost leads & prospects can be recovered, re-engaged and turned into sales.
Here, we break down how to recover your leads and how your CRM can help.
- Follow up Leads with CRM Department
In a dealership, you will have considerably more leads than prospects. For this reason, it makes sense to let the CRM department handle the large volume of leads coming in before passing onto sales. To ascertain true interest, the CRM or marketing department should make the first communication out to prospective customers.
- Convert to Prospect or Mark as Lost
After speaking with the prospective customer, the CRM department should use a Sales & CRM solution to move the Lead along in the sales funnel, from a Lead to a Prospect, or alternatively mark as ‘lost’. If the person wants to buy a car, the Lead should be converted to a Prospect for follow up by a sales consultant. (The right Sales & CRM solution should be able to automatically assign a Prospect to a fellow sales consultant for immediate follow up & accountability.) If the person no longer wants to buy a car, or can’t be contacted, you can mark the person as Lost within the system, and attach a reasoning for later assessment.
- Sales Contacts Prospect
Following on, all Prospects should be attached to a sales consultant within the solution. This way sales managers and marketing/CRM departments have a clear view of all potential sales for month end – including those of which have impending follow up actions or not – at any point throughout the month.At this point in the process, the sales consultant will reach out. If the person remains wanting to purchase, the sales consultant should move the Prospect forward through the sales funnel. However, if they are no longer interested in purchasing, the sales consultant can mark them as ‘lost’ within the solution, with a reasoning attached for later assessment.
- Recovering Lost leads & Prospects – The Key to the Formula
The next step is where the magic happens. The CRM department should consistently follow up on all lost prospective customers in order to assess a) why they were lost and b) if they are still in the market to buy a car. This is the most important step in the formula. Through hundreds of dealership analyses, we’ve found the majority of sales opportunities are found within Lost Leads and Lost Prospects. A quick reach out to lost Leads and Prospects can uncover a wealth of data for your dealership.In many cases, you will be surprised how many Leads are not actually lost, i.e. they are still in the market to buy. Additionally, you will discover rich insights to improve sales conversions such as, How many Lost Prospects bought the same car at another dealership? This will help sales manager assess the performance of sales consultants and why the sale could not be closed at your dealership.
- CRM Department Reactivates or Mark As Dead
At this point, the CRM department should do one of two things; either mark the Lead as Dead, or reactivate to a Prospect. If the Prospect is reactivated, it should automatically be assigned to a sales consultant for immediate follow up. In all instances of reactivated Prospects, the sales consultant should mark the Prospect as a “Hot Prospect” within the solution; meaning a sale is likely. It is best to capitalise on reactivated Prospects within 24-48 hours, as they have indicated they would like to purchase; they are usually the easiest to ‘close’ as well.
This is a simple, easy to follow process we’ve seen bring tremendous results across dealerships. Most dealerships who implement this process have seen a 5-10% increase in overall sales numbers, simply by reactivating ‘lost leads’ and tracking ‘lost reasons’ to improve sales conversions. Lost Leads and Prospects are the low hanging fruit in your sales strategy. Set a proper solution in place and you will see your bottom line improve significantly through these small changes.