“What gets measured gets managed.” – Peter Drucker
How does your business define sales success? While some sales teams look strictly at bottom line sales numbers or total units sold, it’s important to remember that any and all available lead management data can help your business evaluate team and individual performance. To help, we’ve put together a list of the top CRM metrics that can help you identify and achieve success.
Whether you look at it holistically or filter it down to the salesperson, closing rate measures success at the most basic of sales activities: converting leads to sales. Some CRM systems will calculate this percentage for you. To calculate this on your own, simply divide sold leads by total leads and multiply by 100.
The "right" (or best) closing rate number varies by industry. In the automotive space, for example, our coaches think dealerships should strive to achieve a closing rate of 12-15%. This is backed by thousands of pieces of data and a great deal of experience evaluating sales performance.
Appointments Set Ratio
In most sales operations, setting an appointment is the precursor to closing the deal. If you’re selling software, for example, you’re scheduling demo appointments. If you’re selling cars, you’re setting up test drive appointments. To calculate your appointments set ratio, divide total appointments set by total leads and multiply by 100.
As with close ratio, the standard for appointments set will vary based on your industry. Auto dealers should achieve 40-50% on this metric. If your sales team is not achieving the benchmark, then they may not be taking full advantage of all the tools at their disposal.
Appointments Shown Ratio
For some car dealerships, it may seem like setting an appointment with a lead can be the biggest battle, but doing what you can to ensure the customer shows up for their appointment is just as important. To assess how your sales staff is doing this, divide total appointments shown by total appointments set, and multiply by 100.
Car dealers should first try setting a baseline show-ratio goal of 50%, increasing it incrementally to ensure you are maximizing your opportunities.
Appointments Sold Ratio
The end goal for any sales team is to sell. Beyond looking at total units sold and your unit net, evaluating your sold appointments ratio can tell you if your sales team is operating at full capacity. To calculate this, divide the total appointments sold by total appointments shown and multiply by 100.
In an auto dealership, sales superstars can sell 50% or more of their appointments. However, 50% is an outlier reserved for the best salespeople. On average, you should strive for a 30% sold ratio.
Is Your CRM Working for or Against You?
Remember that the data you pull from your CRM is only as good as the data that gets put into it. To draw accurate conclusions from your CRM metrics, it’s vital that your sales staff is using your CRM to its full potential, meaning each and every tool is worked into your process. Because the more data fed to your CRM, the more power you have to evaluate your performance and create strategies to increase your sales.
It’s one thing to understand your lead management data, but it's another to know how to draw conclusions from that data. Allow the Maritz Automotive team to lend a very helpful hand. We offer a great assortment of solutions for auto dealers, including training, in-house coaching, and resources to ensure you make the most of your generated car leads.