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Tracking leads is the first step to managing your lead process. When a GM says, “Why is my closing percentage low!?”, I don’t start with how many deals we closed; I start with how many leads we received. Lead numbers are your starting point and should be your cleanest source of data.
Begin by scrubbing and removing false leads from your lead list and then go into how many of those leads you made contact with: this is called the contact rate. You should hit about 70% or higher of your contacts. If you are lower than 70%, you may have problems with your messaging or the response times of the leads. You may even have a junk lead provider who is sending you bogus information.
If you are operating at higher than 70%, move on to lead appointments. Ideally, you want to set a minimum of 40% appointments from your lead list leads. If you are under 40%, your sales people may need training on various ways to ask for the appointment. If you have a high appointment to lead rate, but a low contact rate, this may be a tell-tale sign that your salespeople are cherry picking leads. If you have high rates on both, then pat yourself on the back and focus on getting them to show up. A manager should be confirming every appointment that gets logged, because it validates the appointment and adds credibility to the dealer. If the appointment feels real, there is a higher chance that the appointment will show up. The goal is to fill the top part of the funnel as much as possible so you have the highest chance of closing more opportunities later in the funnel.