Best Practices

Dealer Showroom Floor Sales Statistics and Percentages

Jeff Kershner
Posted onAug 7, 2008 at 12:43 AM
Updated onUpdated on Nov 24, 2010 at 2:22 PM

Showroom sales statistics for car dealers

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Here are some general showroom statistics compiled from Nada studies, Joe Verde Group and a few other sources/studies over the last several years.

Some of these statistics are a few years old but believe me, still hold. Even with the influence of the Internet, 90 PLUS % of our customers are still eventually visiting the showroom and looking for a relationship before spending a wade of money and finally making their purchase.

Even when your “Internet customer” visits the showroom, many times it’s back to square 1, and this is where most sales people can find themselves skipping the sales steps. It’s amazing how much your relationship with your customer determines the sale…

72% of customers tell their salesperson they are “just looking” at the initial greeting.

71% of customers say they bought their vehicle because they like, trusted and respected their salesperson.

85% of consumers say their salesperson DID NOT control the sales process, build any rapport or interviewed their sales person.

88% of customers said they received a lousy presentation and demonstration.

50% of customers said they bought on the spot when they got what they felt was a good presentation and demonstration.

93% of customers did not get a service walk as part of the sales process.

94% of salespeople are not confident of the price in the close.

90% of sales people DO NOT do any follow-up whether the customer purchases or not.

82% of customers cannot remember the sales persons name 1 year after their purchase.

78% of customers who visit your showroom buy a vehicle somewhere.

85% of customers made up their mind to purchase a vehicle before they left their house.

38% of customers purchase within 4 hours of visiting their first dealership.

57% of consumers purchase within 3 days of visiting their first dealership.

90% of customers purchase within 1 week of visiting their first dealership.

30% of customers have a family member who will purchase a vehicle in the next 90 days.

Jeff Kershner
Founder of DealerRefresh - 20+ Years of dealership Sales, Management, Training, Marketing and Leadership.
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This one still boggles my mind!

"90% of sales people DO NOT do any follow-up whether the customer purchases or not."

If that doesn't make the case for a strong CRM I don't know what does...

This one reminds me of a guy I used to know when selling VW's way before the days of high tech CRMs. He was one of those hungry salespeople that spent tons of his own money to send birthday cards etc. to every single customer. He sat at his desk in the corner and I would bet that 40% of the people that walked through the door asked for him. I'm pretty sure there was one guy like him in every store in America. He was certainly part of the 10% that really "wanted it". He sold over 60 cars one June when I was working with him.

He could have managed my BDC anyday!

Maybe it's not the economy and gas prices that's the problem... it's follow up! ha!

Seriously though, the vendors in our space are lucky to be able to provide products and services that can help retain customers and make dealers money. ;-)


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Those are awesome stats and a real eye opener. I have printed these off and I hink a little art deco would be in place, Maybe hang it where everyone has no choice to read it. Any Ideas?
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    Jeff Kershner
  • August 8, 2008
@Frank

The found the bast place to display import information is right on the "chip board". How many times do you walk by and count the chips (Sold units) on the magnet board. I guess some of us have a dry erase board..that works too. Just tape that shit up there.

Or I would make several copies and ask the receptionist to place it in the sales people and or managers mail box every morning for a week. They always loved me for that.

Jeff
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    Ryan
  • August 12, 2008
Jeff,

Is there a source available for these stats? I love the percentages, but I 'd like to know who to credit them to.

Thanks,

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    Ryan
  • August 12, 2008
Jeff,

Is there a source available for these stats? I love the percentages, but I 'd like to know who to credit them to.

Thanks,

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    Ryan
  • August 12, 2008
sorry about the repost, it was unintentional...

The stat that jumped out at me was the first one. 72% of customers tell their salesperson they are “just looking” at the initial greeting.

A constant challenge and opportunity for discussion with my clients occurs around tracking. It seems crazy to me that so many dealerships are asking "what brought you in today" to a customer that is "only looking" and basing $100k ad spends around their answer. I'd say they aren't "only looking" any more than "they just drove by."

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I've seen these several times before and heard them mentioned at a recent training seminar. Never has anyone given definitive, proper credit to the source.

"Here are some general showroom statistics compiled from Nada studies and a few other sources/studies over the last several years."

Huh? The only comment appropriate here is that the stats are either very very old, when the carbiz was booming, or "massaged" in some way. Like this one: "90% of sales people DO NOT do any follow-up whether the customer purchases or not." Total nonsense, period.

Aimsmith
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    Jeff Kershner
  • August 15, 2008
Geesh Randy, don't get your panties all in a bunch over some statistics.

I agree with you. The 90% does seem a little high and maybe if this statistic is a few years old it could be off. But by how much really?

What if it's 80%?
Or even 70%,
Heck, lets says it's 60%.

Would that really make it any better?

The post was not to point out the exact percentages as a some stringent guideline, but merely to show that there is a huge opportunity to shine as a professional. Even if everyone of these statistics fluctuated by 10-20%, there is STILL huge opportunity to improve, a huge opportunity to stick out from the crown and build a book of business.

I'm sure you can agree with that?

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    Billy
  • August 15, 2008
Agreed Jeff,

It's a never-ending fight to get salespeople to follow-up.

Most of mine will tell you they perform better when I have my foot up their butts the most. Every time I ease off, the phone calls and ultimately sales, dwindle.

I, for one, will say it's at least 80%.
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Jeff,

This is great information and even if they are off by 10-20%, as you say, they do provide a huge opportunity. Can you share the actual publications of where you retrieved this information so we can all better digest it? I am particularly interested in the context as well.


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    Mel Bayo
  • August 18, 2008
Aimsmith, you’re right to respond in the manner you have after reading these statistics. You probably operate in a corner of the world that really gets the importance of follow up and lives it every day so I’m sure the numbers don’t apply to you or anyone you’re associated with.

I’ve had exposure to these statistics as well and probably in the same context as you. Industry trainers cite NADA as their source and if you dig a little you’ll find that Chris Carey, then CEO of Stronghold Technologies, used the stat you’re questioning in a press release about a workshop he did at the 2003 NADA convention entitled “Turning Be-Backs into Buyers”.

I quote: “Cars dealers typically ‘capture’ or record information on barely half of the customers who come into the showroom. This poor capture rate severely affects the dealer’s ability to follow up with prospective customers and generate return visits to the dealership. In addition, according to NADA statistics, only 10% of prospective car buyers are contacted by dealer personnel. There is an opportunity for a dealership to improve the processes for capturing prospect information and for contacting these prospects, setting appointments, getting customers back into the showroom, and closing once they return to the dealership.”

Yup, the 90% stat is at least five and a half years old, but as was probably said when you first heard it, “If the number’s too high, cut it in half.” Bring the stat back to life by mystery shopping a few showrooms in your area. If you play informed consumer, not lay-down, you’ll find the challenges Carey cited, while possibly diminishing over the last few years, still exist.

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Gentlemen

Sorry...just my opinion based on 1000's of surveys of new car customers who say that 70 to 80% of the time the salesperson who sold them their car follow-up with them by phone. If the statement had not said "sold or not" ... no problem.

So what's wrong with properly citing sources if possible? Who is the author of the article?

Aimsmith
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    Alan Harvey
  • November 6, 2009
I am a Stronghold Technologies alum', and I was the guy who used to spout those statistics (and many others) in training seminars every week, all across the country, to rooms full of automotive salesfolk. I did get questioned from time to time as to my sources, and I always said, "NADA..."

In actuality they were a collection of statistics that had been pounded into my head over the years from: Jackie Cooper, Joe Verde, Grant Cardone, John Traver, Al De'Sarro, and countless other speakers, trainers, sales managers, etc...

I WOULD like to know what the real numbers were, and how they've changed over the years. It would also be nice to be telling the truth when I'm quoting them to people who are paying me to.

Alan
Jeff Kershner
The stats were compiled from Nada studies, Joe Verde Group and a few other sources/studies over the last several years.
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    Shelly Chambers
  • December 28, 2011
Interesting stats!  The follow-up process is a tough one.  Most sales people are just not trained in follow-up best practices or procedure.  This is where BDC agents are a great benefit, allowing the sales crew to do what they do best...sell cars; while the BDC agents complete follow-ups and get people back on the lot.  It can take more than 8 attempts to make contact with someone who visited your dealership.  Getting in touch within the time that they are still looking for a new car is very challenging and time consuming.  It's no wonder it's often neglected.  It's a shame, there's a lot of opportunity in unsold showroom traffic.     

As for the rest of the stats, I know 1st hand that a little improvement in all areas of the sales process make all the difference...and let's face it, if someone is on your showroom floor they ARE looking to buy a car. 

Car buying is an emotional purchase.  It's the 2nd largest investment that most people make.  So if you're in denial and think that customer experience has no relevance to a purchase, think again guys!

Follow-ups and customer relationship building should be a department in itself, given the specialized way that these proceedures should be handled and the time and dedication needed to do it right! 

  
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    Nate
  • January 30, 2013
Interesting stats.  The last post was a year ago.  I hope you are still around.  I am seriously considering beginning a car sales career, and am seeing dealerships with just floor sales people, who I suspect are also dialing the phone a good deal, as well as dealerships who have both floor sales personnel and Internet sales personnel.  My guess is the Internet salespeople are dialing and emailing all day long, trying to get their prospects to come into the dealer where they can meet and then be sold face to face.  Do you have any insight as to where I might be able to make the most income, strictly a floor sales guy, or one of the Internet sales guys?  Any other input or suggestions?  Thanks.
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    KJ
  • February 13, 2013
Interesting the stats I would love to see would be if someone like myself hired as customer retention (customer ''service'') actually ends up bringing people to the dealership because we sparked interest just from calling. I am not a car sales person, was hired to contact past customers and see if they had service or warranty concerns or even if they owned the vehicle still and depending upon the answer see if anyone wants a call back about perhaps coming in and looking at a newer vehicle. We've been quite busy here lately and a number of used and new cars have been purchased but supposedly none of the ones my colleague and I called were any of these people. I smell dishonesty actually and not really getting much help in how to "dangle the carrot" to get them interested in a call should they actually wish to purchase, because they aren't telling us anything at all.  I would also like to know the REAL stats of what happens when you send emails out to people who didn't know you can serve them no matter where they are in the province or city they are in (I'm in Canada)  We serve Western Canada, and many people didn't think we did.
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    KJ
  • February 13, 2013
I send about 30 emails a day call about 40 to 50 businesses and also about 30 to 50 residences at night (I work midday to early evening)  so I would like to know if anyone does.
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