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  Every automotive dealership strives to optimize sales performance. Here are three simple but essential metrics to help manage sales in general, and Internet sales in particular.
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  3 Numbers Every Dealership Needs to Know Essential Metrics for Automotive Retail in the Internet Age © 2013 n-FLUENTS Information Solutions, LLC  3 Numbers Every General Sales ManagerNeeds to Know The doldrums of January  – February are the perfect time toassess sales performance for last year and make changes beforedemand thaws in the spring. Consider these metrics: ã Close Ratio to measure individual salesperson success. ã Lead Cost Per Sale to evaluate Internet lead sources. ã Net Promoter Score to measure customer satisfaction. © 2013 n-FLUENTS Information Solutions, LLC  Close Ratio as a measure of individualsalesperson performance:  Eliminate duplicate leads from the same customer.  For salespeople who take only Internet leads, calculate Close Ratio as thenumber of closed sales from Internet leads ÷ the number of Internet leads.  Allow enough cycle time for leads to close. We know that about 40% of leads that result in a sale do so within about 40 days, but only about 2/3 of those leads close within 90 days. Most will close within 180 days.  So, calculate Close Ratio each month as a trailing six month average of salesdivided by leads, and favor your stronger closers for better yield. © 2013 n-FLUENTS Information Solutions, LLC  Lead Cost per Sale as a measure of Advertising Cost:  Except for three states where it isillegal, lead providers normallycharge on a per lead basis.*  Actual cost/lead is irrelevant.  What matters is the total advertisingcost per unit sold.  Cheap leads that close at 3% areactually more expensive than 5%closing leads that cost 33% more. © 2013 n-FLUENTS Information Solutions, LLC Lead Cost per Unit SoldClose Ratio 3% 4% 5%$18/Lead $600 $450 $360$20/Lead $667 $500 $400$24/Lead $800 $600 $480 Assumes 100 leads / month *Lead providers have ways to get around price per lead prohibitions.
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