Analysis by IHS Automotive, Commissioned by CallSource, Reveals Auto Dealers are Missing Out on Important Phone Leads.
Westlake Village, CA – August 18, 2015 – Over eighty percent (84%) of a dealership’s inbound sales calls are not converted to a sale1 by that dealership, according to recent IHS Automotive analysis commissioned by CallSource. The performance of over 540 dealerships2 nationwide over a one-year period (4/14-3/15) was reviewed.
The analysis also revealed that, when managed properly, dealers are able to improve incoming call-to-sale ratios by more than 33%, based on further analysis of top-performing CallSource dealers. And, with calls currently outpacing email leads3 4-1, improving incoming call-to-sales ratios could add hundreds of thousands of dollars to a dealership’s bottom line.
“Many dealers think they have a call handling process in place, yet without phone skills training and missed opportunity alerts, they lose countless sales opportunities every month,” said David Greene, VP CallSource Auto Division. “If call handlers could set just four more appointments each day and convert one of those to a sale, they would add an average of $2,200 in profit to the bottom line each day, or $66,000 per month4!”
While not every incoming call can result in an appointment (e.g. caller not yet ready to buy, dealer lacking appropriate inventory), this analysis indicates that dealers have a significant opportunity to improve call handlers’ performance and convert more inbound calls into appointments.
According to CallSource, some of the most common reasons call handlers fail to convert inbound prospect calls to appointments are:
- Rude/unprofessional exchange
- Call handler’s lack of inventory knowledge
- No ‘needs analysis,’ so no alternative vehicle offered
- Call handler fails to ask for appointment
- Call handler asks the prospect to call back
- Salesperson unavailable
CallSource invented call tracking as a service and has tracked more than one billion calls since 1991. For over 25 years, CallSource’s award-winning solutions have helped businesses track, analyze and improve incoming call performance. In addition to tracking over one billion calls since inception, CallSource delivers marketing insight, including cost-per-lead analysis and sales conversion percentages, training and coaching solutions to improve phone skills, and tools that enable businesses to recapture mishandled opportunities. Based in Westlake Village, Calif., CallSource recently received a patent for its Sales Performance Management (SPM) system, which combines the actionable data of its call analytics, performance analysis, advisory services, and online and phone training/coaching from seasoned sales professionals. CallSource serves multiple industries including automotive, home services and healthcare, as well as numerous franchise businesses. Visit callsource.com.
1Analysis of customers who purchased a car within 90 days of originally contacting a dealership
2CallSource dealer customers
3ADP Digital Marketing
4Based on average profit of $2,200 per car sold NADA