Internet leads have become ubiquitous in dealership sales, with 95 percent of people starting their car-buying journey with a Google search. However, converting Internet leads to actual sales may be tricky.

It can be frustrating when your average internet close rate isn’t nearly where it should be, but it’s not impossible. You can turn the tables around, get more Internet leads to show up, and close more deals with the right strategies.

Understanding Dealers’ Average Internet Close Rate

Dealerships get an average of 278 leads monthly from various sources, including phone-ups, walk-ins, and the Internet. 

While the breakdown of leads from each source differs for every store, industry benchmarks suggest that the average internet close rate in the US is between 8% and 12%. Some high-performing dealerships that implement a strong follow-up process see even higher results, above 15%. Moreover, according to Foureyes, internet leads have an appointment close rate of 42% for new cars.

With internet leads making up a growing proportion of car sales, dealers need to have a structured strategy to see any significant improvement in their average internet close rate.

Factors That Influence Internet Close Rates

Several factors influence your dealership’s average internet close rate, but it all ties in with your sales process. Here are the things that can prevent or improve the chances of converting leads to closed deals:

• Lead Quality – Leads from a dealership’s website tend to convert better than third-party leads because they show higher intent.

• Response Time – The faster a salesperson responds, the higher the chance of engagement. Studies show that responding within five minutes can significantly improve the average internet close rate.

• Follow-Up Strategy – Leads often require multiple follow-ups across different platforms, including phone, text, email, and video to stay engaged.

• Sales Process Alignment – The sales team and Business Development Center (BDC) must work together to ensure a seamless lead conversion process.

• Website User Experience – A well-designed website with clear pricing, financing tools, and easy lead submission helps attract serious buyers.

• Appointment Setting – Encouraging leads to visit the dealership increases the chance of closing a sale.

Common Mistakes That Lower Close Rates

Certain practices make it harder for dealerships to close deals and lower your average internet close rate. Here are some of the biggest mistakes your sales and BDC teams need to avoid:

Mistake 1: Slow or No Response

Internet leads expect a fast response from your team, and if you wait too long, they’ll be shopping around and closing a deal with another store before you know it.

Mistake 2: Lack of Follow-Up

If your team is afraid of following up because they don’t want to seem too pushy, then you’re losing potential car deals. They should be more scared of doing less than doing more. According to the National Automobile Dealers Association (NADA), it can take up to 5 follow-ups to convert a lead.

Mistake 3: Generic Messages

Autoresponders are great if you want to save time, but personalized follow-up messages are still king. When responding to a lead, talk about the specific action they took, thank them for what they’ve done, and answer their questions. Don’t fall into the trap of sending generic, noisy emails or texts that don’t provide value.

Mistake 3: Poor CRM Tracking

Your CRM is one of the most important tools for tracking leads and follow-ups. According to Salesforce, companies with strong CRM practices can improve their sales conversion rates by 29%.

So don’t let Internet leads fall through the cracks. Manage your CRM well so that salespersons and managers don’t forget to reach out to leads on time. 

Mistake 4: Failing to Set Appointments

Nothing kills a lead faster than failing to set an appointment. Whenever salespersons contact an internet lead, their primary goal should always be setting an appointment. A car deal is not done until the customer shows up, signs the papers, and closes the deal.

How to Fix Your Average Internet Close Rate

Improving your dealership's average internet close rate means finding ways to talk to leads more, keep them interested, and help them make a decision faster. Here are six simple ways to fix your close rates and turn more Internet leads into customers:

Fix #1: Respond Quickly to Leads

Studies show that contacting leads within 5 minutes improves the odds of a customer scheduling an appointment and closing the deal. Speed is critical for improving your average internet close rate, so make sure that salespersons and BDC agents contact the lead promptly. 

Remember, buyers are already shopping around, so unless you’re faster than the next dealership on their list, you’re completely missing out on a potential sale.

Fix #2: Use Multiple Follow-Up Channels

When following up with Internet leads, you have to exhaust every channel at your disposal. Diversifying your follow-ups and using phone calls, emails, and texts to stay in touch with leads is the best way to go.

With phone follow-ups, it’s best to call within five minutes of receiving a lead to increase engagement. Using a call guide can also be helpful for salespeople and BDC agents. If the customer doesn’t pick up, just call them again. 

You can also leave a voicemail, but keep it short and urgent. Let the lead know you found the car they’re looking for and ask them to call you back!

When you’re texting a lead, make sure to keep the message short, engaging, and professional. Thank the customer for submitting a lead, answer their questions, and don’t forget to ask for an appointment.

For emails, avoid noisy and meaningless messages. Personalization is the way to go, so tailor your message to the customer’s inquiry.

Fix #3: Send a Video

Video is an incredibly effective tool for keeping Internet leads engaged. According to a study by Forbes, adding video to email follow-ups can increase click-through rates by 200-300%. Use video to confirm appointments, share important vehicle details, or simply re-engage leads who may have gone cold.

When sending videos, remember to keep them short and sweet. Introduce yourself and the dealership where you’re from, show them the car they're interested in and do a quick walk-around if it’s available, set an appointment, and ask the customer to call you back.

Fix #4: Set Clear Appointments

With internet leads, your ultimate goal is to get them to show up at the dealership so you can improve your average internet close rate. Setting an appointment for a test drive or an in-person meeting is critical. So, when you’re on the phone with a customer, always ask when the best time is for them to come to the dealership. Pencil in that appointment and confirm it with a text or a video message afterward.

Another simple way to make the appointment seamless is by sending a calendar invite through text or email. When you send a calendar invite to your customer, it makes it easier for them to remember their appointments, so they’re more likely to show up.

If you want to make this process even easier, you can use an automated tool to send calendar invites. Tools like RevDojo’s CalenGrow sync with your CRM so that whenever a lead gets logged in the system, it sends an automated calendar invite to the customer, the salesperson, and the sales manager too! This way, you can grow your average internet close rate by up to 15%.

Fix #5: Get the Manager Involved

Early manager involvement is crucial for improving your average internet close rate. Studies show that lead conversion rates increase by 30% when a manager follows up within 24 hours of receiving a lead.

Sales managers should also be involved often in the sales process. They should be able to step in before an issue comes up and it becomes too late to save the deal. 

Manager involvement is also an excellent re-engagement strategy for leads that have gone cold. A call from a sales manager conveys that the dealership is committed to providing the best services possible, which helps reactivate the deal and close the sale.

It’s also important for sales managers to regularly review CRM data to ensure that sales teams and BDC agents are following up effectively and are closing deals.

Fix #6: Get Your Digital Retailing Tools Right

Digital retailing (DR) tools help dealerships simplify the buying process while making it more engaging for the customers. So you have to get this right to improve your average internet close rate. Some tools you can use on your dealership’s website include:

• Online financing tools that allow buyers to check payments and pre-qualify for loans before visiting the dealership.

• Trade-in estimators to help customers understand their vehicle’s value, encouraging them to continue the process.

• Live chat and chatbot features to provide instant answers to customer questions, keeping them engaged.

• Online appointment scheduling makes it easier for customers to visit the dealership.

Final Words

The key to improving your average internet close rate is to focus on things that help nudge the buyer to the next step of the sales process. It’s about making the customer’s experience easier, more seamless, and personalized so they end up choosing you over the competition.

So, respond quickly, diversify your follow-up, get the manager involved early and often, and make the customer feel taken care of every step of the way.