4 tips to boost your vehicle sales close ratio

Posted by Insignia Group on Dec 19, 2014 8:00:00 AM

Everyone remembers the famous line from the movie Boiler Room, “Always be closing”. Sounds good in theory, but is it practical? As a dealership you have to be creative, but use practical knowledge to improve your closing ratio. Here are four tips to help. All are creative but easy to apply to your operations.

1. Practice Relationship Building:

In order to gain a new customer and their loyalty, you must build a positive relationship with them. Ask those qualifying questions, but don’t forget to be conversational and genuine. Your objective is not to just simply close the deal but, you should be striving to make a connection. When a prospect walks into your dealership whether they test drive a vehicle or not always get their contact information. Let them know you want them to be aware of any deals and specials you’re promoting. Also, ask for special dates, like their birthday and send birthday coupons. This helps facilitate a positive connection between them and your dealership. Not every prospect will purchase on their first visit, but that doesn’t mean they won’t become a loyal customer.

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2. Show and Tell:

Nothing is more frustrating for your prospect than for them to know more about the product you’re selling than you do. A salesman that doesn’t know their product immediately impacts whether a person will buy from a dealership. You should know enough about every product you sell to give a presentation. Don’t just give them enough information to operate the vehicle during a test drive. Show off certain features that will appeal to them, show them how they work and how it will benefit them. Accessories solutions and displays are an excellent interactive way of showing and telling. Pre-loaded vehicles also make great show and tell tools.

3. Understand the meaning NO:

“No” in car sales doesn’t always mean no, it usually means “not right now”. 33% of potential dealership customers that said no said they would come back to that dealership and allow them another chance to close the deal. But, what usually happens is no one follows up. If a person says "no" it’s important to follow up and find out why. When a customer says no, invite them to take a “how are we doing?” survey. Use that information to follow up and close the deal.

4. Practice Team Building:

Every dealership has that champion sales consultant, the one that has a 75% closing ratio and averages $800 per car in accessories sales. But you also have the salesmen that could use some work; they’re the new kid on the block or just haven’t gotten the hang of it yet. And, your entire sales team is only as strong as the latter. Use everyone else to strengthen your team. Your champion is sure to have some tips to share and lessons to teach the rest of the team. Sharing best practices or word tracks is a great dialogue for team growth.

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Topics: Presentation Tools, Improve CSI, Reducing Turnover