What is The True Cost Of Poor Quality Leads For Your Used Car Dealership?
January 27, 2021
While there is a growing need for supplying your dealership with quality used cars, the time and energy you spend on poor quality leads are just as important as the vehicles themselves. For example, tracking down these leads and taking the time to follow up multiple times can take away from your bottom line. Below are the different ways that unqualified leads on used car inventory can harm your dealership and what you can do to get around these problems.
Time Spent on Used Car Acquisition
One of the biggest parts of used car acquisition is the time spent on the leads. For an employee to search out leads, follow up with them, make the connection, and then move into negotiations, several hours can secure one lead. Unfortunately, when these leads do not pan out in the dealership's favor, they are out of those hours, and other potential leads captured by competitors.
Not All Leads Are Equal
While all lead searches may begin the same way, minutes into the lead, a seasoned employee will start to determine what type of lead they have and whether to continue investing time into the lead or move on to more rewarding leads in the used car acquisition process.
Time Consuming Leads
Some leads take up much more time than they are worth. These leads are known as cattle leads. These leads come from potential sellers who are also shopping around for the best price. While a good percentage of these leads result in sales, they are also negotiating with other dealerships. Waiting to hear and negotiate with competitors increases the time that you invest in each of these leads.
These leads, unfortunately, do not often have a human behind them when they are generated. Robots and artificial intelligence often create these auto-generated leads. Any time spent working on these leads is an automatic loss for your dealership.
Loss of Employee Motivation
One of the biggest losses that your dealership will experience with many poor quality leads during used car acquisition is the loss of motivation from hard work that produces no reward. When there is no benefit during the loss of time at the dealership, your employees lose money. When your employees lose out on money, there is no motivation to work hard for the good leads, and competitors can take advantage of these opportunities.
Loss of Money
A lack of employee motivation happens when they spend endless hours chasing down leads and not getting anywhere. When your employees are not making money, the dealership is also suffering at the same rate. Spending too much time and effort into the wrong leads will cost your dealership opportunities to have been successful while spending operational costs with no input. With so many private dealerships taking advantage of the growing need for used cars, this is a loss that they cannot afford if they want to stay in business for 2021.
Let VettX Manage The Risk & Losses
The true cost of poor quality leads during used car acquisition services can be the difference in staying open this year. When you partner with VETTX, our team of professionals uses their knowledge and expertise to track down quality leads, generating all the heavy lifting during the acquisitions. This allows your employees and dealership to focus their energy on the wins, while we weed out the losses for you.
If you would like more information or schedule a consultation with a team member, contact us at VettX today for more information.