Proper Follow-up Can Skyrocket YOU (and Your Dealership) to the Top
By Ted Ings, Executive Director
Recent statistics indicate that as much as 68% of vehicle buyers never receive a follow-up phone call after they purchased their vehicle.
It’s no wonder that the average dealership sees fewer than 30% of their customers returning to purchase future automobiles. It also means that less than 1 in 4 salespeople are doing what it takes to effectively generate repeat and referral business.
It’s the one sale and “forget about it”.
Part of the reason many salespeople don’t follow up with customers is that they don’t consider automobile sales to be a lasting career.
But that’s often because they’ve never understood how follow-up can turn them into top producers – earning significant amounts of money - in only a few short years.
Let's do some simple math:
Let’s say you average 10 vehicles per month, and you follow up with your customers every 5 months. This will keep your name in front of the customer, so when they come back they’ll be sure to ask for you. Now let’s be conservative and say your customers are just the average customer, so you only get 30% coming back to purchase from your dealership. That’s 3 repeat sales.
The average customer buys a new car every 4 years. So in your 5th through 8th year in sales, you would average 13 cars per month if you never changed anything. In your 9th through 12th-year you would average 16 cars per month because your original business turns over every four years.
So how much money would you be making right now on your current pay plan selling 19 cars per month in your 13th through16th year in business?
Career vs. a job
Top career salespeople - who have followed this simple strategy – find that their business turns over every 3 years on average. And their business also increases because of referrals. They don’t take fresh "ups" any longer because their entire business is by appointment only. And many of these people started as average salespeople.