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How Many Phone Calls Can and Should Your Internet Department Make?

 

Here’s a question I hear a lot at my Internet Sales 20 Groups: “How many phone calls should my department make per day?” This question is huge, because simply dialing the phone can dramatically change the outcome of your dealership’s Internet Sales. Your dealership’s Internet Department and BDC are, after all, a number’s game. Let me break it down for you:

 

  • The more people you dial, the more people you get on the phone.
  • The more people you get on the phone, the more time you can execute your phone process or sales script.
  • The more people you engage on the phone, the more appointments you can set.
  • The more appointments you set, the more appointments you can confirm.
  • The more appointments you can confirm, the more people show up.
  • The more people show up, the more people will buy vehicles.
  • More vehicle sales equals more money for everyone — both the dealership and you.

 

I know that  this might sound too easy to be true, but it really is this simple: If you dial phones more, you will sell more vehicles. I have been doing automotive Internet sales and business development for more than 12 years now, and that has proven to be the case over and over again all over the country. Doesn’t matter what type of franchise you have or how big your organization is — math is math.

 

Let’s go a little deeper. I have dealers who tell me over and over that their Internet sales coordinators, BDC reps, and appointment setters are only making 50 to 60 calls per day, and that is like pulling teeth from them. They complain that they can’t make any more calls — it’s impossible. Or, they don’t have anyone to call, or they are worried that they are calling too much, or that people are mad at them for calling too much, or countless other excuses for mediocrity.

 

Here are some important statistics:

 

• 55 percent of communication is visual perception and body language

• 38 percent of  communication is tone and inflection

• Only seven percent of communication is text or the words that we use

 

This means with Internet prospects, it makes a lot of sense to escalate the e-mail to the phone call and the phone call to the appointment. The appointment builds the relationship, product presentation and demo drive, and all this builds value.

 

The average Internet prospect is searching five to seven other dealerships and or Websites (this can be same franchise or other franchises). That means five to seven other dealerships are following up sending e-mails and leaving voice mails.

 

The average connection on a phone call attempt is 11 to 14 percent. That means if you dial 50 attempts you are only going to reach five to seven people. Think about that for a moment: If you have full-time appointment setters, BDC reps and Internet coordinators and they work an eight to nine hour day, they are only connecting with five to seven people? That is not enough at all.

 

On average, you will close 25 to 33 percent of the people you actually get on the phone. That means if you attempt to call 50 people, you will get five to seven people on the phone, and from those you can expect to make about one or two appointments. That is nowhere close to being enough.

 

Let’s just use a safe and realistic 50/50/50 closing ratio. If you make two appointments per day, five days per week, that’s 10 appointments per week, or 40 appointments per month. Out of 40 appointments per month, about 20 people will show up and about 10 people will buy vehicles.

 

Our clients are making 120 phone calls per day per rep. Out of the 120 attempts, they are connecting 11 to 14 percent, which means they speak with 14 to 17 people. They are converting 25 to 33 percent to appointments, which gives us between four and six appointments per day per rep. Let’s say they make five appointment per day, five days a week, for 25 appointments per week or 100 appointments per month. Of those, 50 people will show up for the appointment and they will deliver 25 units.

 

Now that I have your attention, how do you get your department to actually make these phone calls? Its simple: accountability. Do not let them accept mediocrity. They will give you every reason, why they can’t do it. You have to encourage them they can and they will. For a sure-fire way to prove it to them, however, have them go through the “Power Hour.”

 

The “Power Hour” is a contest you will have with your team. Put some type of bonus, prize, or gift up for the winner. Here are the rules: For one straight hour, your people are going to make as many Internet sales calls as possible. Whoever makes the most Internet Sales phone calls wins the bonus. At the end of the “Power Hour,” you calculate how many phone call attempts everybody made, and then add them together and divide them by the number of people who participated.

 

For example, I just did this very exercise today at a Ford / Mazda dealership in Baton Rouge, Louisiana. A couple of weeks ago, they were kicking and screaming that they couldn’t make more than 50 calls per day, per rep. I put out a $100 bill for a “Power Hour” prize. They have four appointment setters and an Internet director. Here are the results:

 

  1. 20 Calls
  2. 28 Calls
  3. 36 Calls
  4. 42 Calls
  5. 53 Calls

 

They made 179 calls in one hour, for an average of 35.8 calls per rep.  Now, multiply 35.8 phone calls times 6.5 working hours in a day (that’s taking out breaks and lunches), and you get 232.7 calls in a day. Now, that might seem crazy, but the math doesn’t lie. I’m not suggesting that they should be making 230+ calls per day per person, but  I am saying that they can sure as heck make a lot more than 50 calls per day.

 

The reality is that they were killing themselves making phone calls because they wanted to win that $100 bill. They had the desire, the want and the need to make a lot of calls. The end result for this dealership was that they all were floored at the end of the exercise when I broke down the math to them. They could not believe how many calls they were able to make in one hour.

 

I have been doing the “Power Hour” exercise for more than seven years now and it works every time. If you have any questions about this article, or you would like me to e-mail you the video of this exercise and the exit interview of this exercise, please e-mail or call me and it would be my pleasure to send it to you.

 

In conclusion, you need to make sure that your team is dialing the phone. An Internet sale is predominately a phone sale. Just think about the math. Remember you only have a 11 to 14 percent connection ratio. Everyone will tell you the hardest part of Internet sales is simply getting the prospect on the phone.

 

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com.

 

https://www.youtube.com/watch?v=HpyJj4MV-ds 

 

https://www.youtube.com/watch?v=4gCVyJLdJVQ&feature=relmfu

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Comments

  • As always your article are so insightful. Great break down of numbers and simple math. Simplicity is sometimes always the answer, and it's as simple as picking up the phone.

  • I get the numbers. It is just the consistency and volume that I am trying to wrap my life experience around. I will leave it to others for feedback from here. Thanks again for a great post. DTG

  • You are forgetting that as per JD Power... YOU will ony CONNECT with 11-14% of your attempts... 

  • As stated, those dealers should give those very special individuals a big hug (and more than reasonable compensation). The fast math is 8 hour day (7.5 hours with lunch). 7.5hrs x 60 minutes = 450 minutes / 120 calls = 3.75 minutes / call with no breaks. Those folks are machines. How they don't sound that way after that many calls is a mystery to me. I respect what you bring to the table and the huge efforts your dealers (ninjas) have made.

    Good Selling!

    DTG

  • David, I have client after client after client that has these types of employees right now... all over the country. As a matter of fact, they are members of this site! Since I am here in Chicago training a dealer group client of mine... They Mike Anderson Auto Group. I will use them as an example... They have a single point chevy dealership we took from 30 units per month to OVER 105 units online. Their ENTIRE team is AWESOME... they ALL deliver day after day OVER 120 calls. Call the dealership, mystery shop them, speak with the Director Sandra... 

    I have these Ninjas all over the country. But you are right a lot of stores don't... that is the point of the article. Dealer need to STOP being complacent with mediocrity- 

  • Sean, your numbers here are eye opening. I can't say I have met the (automotive) individual yet that can consistently come anywhere close to making that many phone calls per day (hour) WHILE maintaining a positive and inviting sounding attitude that is required for setting appointments. One hour, for a hundred bucks, definitely. One day, probably for a while. One week, only a few. One month, I have not met that person yet. I am sure they are out there... For any who have one, give them some special appreciation for their extraordinary efforts on your behalf. Good (Calling) Selling! DTG

  • Yes, Vanessa!!! That is exactly it. You can make as much as you can earn :) 

  • Love this article. I will be doing this tomorrow with my team and will let you know the results! Great post!
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