4 thoughts on “Industry Minute: How Many Leads Can Internet Salespeople Manage?

  1. If the national closing average is 11%, lets say someone working 70 – 80 leads can close 15% of them. With 80 leads you are restricting a sales associate to somewhere from 10 – 12 sales per month. A good sales associate should be able to easily handle from 100 – 120 leads a month, 15 – 18 sales easily, which means they can actually afford to keep their job and build up repeat business long term.

    Do you want good professional sales persons handling internet sales? Then let them make a living at it!

  2. How many leads a person (or department) can handle depends on the QUALITY of the leads as well. If every single lead comming in were a qualified, serious buyer, then yes, we need to have fewer leads to properly address those serious buyers.
    However a lot of the leads coming in are dead ends, wrong/incorrect email addresses, bogus phone numbers, hoaxes etc. In this case I need a large number of leads so the small percentage that actually develop into a real customer get sent to us.
    The hard part is wading through the junk to get to the treasure.

  3. What I have found most successful is balance. A good number of “Internet Leads”, floor ups, phone ups, prospecting and referrals. If your sales person is depending on one source for all of their leads, it becomes redundant and mundane and the law of diminishing returns sets in. Me team has the best months when they are just a little hungry for more, not when they are overwhelmed with strictly internet leads.

  4. While I appreciate the gut instinct that makes us believe 120 leads is better than 80 leads, the numbers discussed in the video are based on years of actual data in many stores. My experience with this data shows that the average Internet salesperson in a non-luxury store handling between 70-80 leads and following a strict process will sell at their maximum output (about 15 units per month). This means that when you give these average salespeople more or fewer leads, they sell fewer units.

    This is not to say that there aren’t superstars who can handle many more leads and sell many more cars. Everyone is different. I know of quite a few outliers who manage to retail 20-25 units per month while managing 160 or more leads per month. (Of course, if you’re a dealer principal or GM, you can do the math and realize that if you had 2 average salespeople splitting those same 160 leads, you’d retail 30 cars instead of 20-25.)

    Unfortunately for our industry, the average closing percentage for an Internet lead is likely below 10%, and the average Internet salesperson is retailing below 8 units per month. It would be great if (via a more intelligent use of technology) we could give our salespeople more leads and get more sales, but the reality is that with the number of phone calls and emails it takes to set an appointment, coupled with the amount of time we spend with each prospect at the dealership, we simply don’t have time today to manage more leads per person.

    A quick caveat: when I reference 70-80 leads, I’m speaking about valid leads (those that come with a correct name, email and/or phone number).

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