The average car salesman sells 2-3 cars a week. The national average closing ratio is roughly 15%. At 8 to 10 cars a month, that’s nearly 44-55 walk in customer’s taken a month. That’s a lot of time and effort spent on customer’s with little to no return; adding to that a recent NADA survey mentioned that 90% of walk-out customer’s are not followed up with.
We humans are wired for short-term gratification. If we work for it, we want the returns – now now now! Many sales reps I’ve encountered do NOT like to follow-up. Their excuses are many, but the tacit excuse seems to be that there’s no guarantee of a return if extra work is put out, especially given the closing ratio #’s above. The remedy for this follow-up obstacle? –
The national average closing ratio on customer’s who came in on an appointment is roughly 50% Likewise, the be-back closing ratio can jump to as high as 70%
The same NADA survey went on to mention that close to 65% of clients do not return to purchase a car at the same dealership due to a feeling of “indifference from the salesperson” after the sale.
Good follow-up is crucial to achieving more sales!
I recently talked to a 20 year veteran who loved our CRM for the follow-up reminders it provided. I asked him how many appointments he set, and he said he tries to set 10 appointments a week.
“You figure you set 35-40 appointments a month, maybe more than half will show but I get 8-12 extra sales a month from those who do.”
Now while he did admit he does a lot of repeat business, he told me he sold 12 cars his first month, and never sold less than 12 ever since – now he’s a 25-30 a month average guy. I asked him the keys to his success,
“Know your product, if you do not know what a button does you have no business selling the car. Once you know your product inside and out it’s easier to qualify and feel like your helping your customer’s rather than just desperately selling to them. And learn how to follow up and set appointments.” I asked him for some tips on setting more appointments, he continued…
“If they want a car, they’re going to have to walk into a dealership at some point. Figure out what gets them talking and force close the appointment – you figure they’re either going to come in for a test drive; get their trade-in appraised; get their financing approved in a secure environment, not online; or buy. If you answered their questions, then bring them in.” I asked him what a force close was, “It’s when you don’t leave a question open ended, don’t ask ‘when is a good time for you?’ give them set options and they’re more likely to decide.”
The follow-up process is both a skill and an art, but it is crucial to a sales reps success. The scientifically back guarantee that sales reps are looking for, is to set more appointments. The more appointments you set and confirm, the greater your closing ratio is going to be and the more success you’ll achieve!!