By Sean Toussi, CEO & Co-Founder,

In today’s digital world, car dealers face greater competition and difficulty converting leads into customers. As a result, lead conversion is becoming increasingly important for car dealerships, but many struggle with closing more sales and turning a profit. But why aren’t more car dealerships converting leads into paying customers? Following are a few reasons why, and understanding these can help you to close more sales at your dealership with improved lead conversion.

How to Close More Sales at Your Dealership with Improved Lead Conversion

1) Follow Up at the Right Time

One of the primary reasons for not closing more sales is poor follow-up. Studies indicate that many leads aren’t contacted on time or followed up with consistently, which makes it difficult for automotive dealerships to build relationships with potential customers. It also makes it more likely that car shoppers will move on to other dealerships as they feel they need to be taken more seriously by the dealership they initially reached out to.

2) Tailor Your Communication

Another reason for this struggle is the need for personalized communication. According to Forbes and Mckinsey survey, 71% of consumers expect personalization, and 42% are dissatisfied with the impersonal car buying process. Without personalized communication, car shoppers can feel that the dealership is not taking the time to understand their needs and preferences. It can also lead to a lack of trust and loyalty, as potential customers may feel that the dealership is more focused on making a sale than on building a personalized relationship with them.

3) Improve Lead Qualification

Improperly qualifying leads is one of the main reasons why car dealerships struggle with lead conversion. Automotive sales professionals must understand which leads are most likely to convert and which may not be. Improving lead qualification prevents wasted resources on leads with little chance of converting. Car dealers should establish a lead qualification process and ask a set of predetermined questions to understand how close a lead is to the ideal buyer persona. This helps to filter out those leads that are unlikely to convert and prioritize those that are most likely to do so.

4) Well-Trained Automotive Sales Agents and Customer Service

A lack of effective sales training can result in fewer closing deals. Automotive dealerships must properly train their salespeople to communicate effectively with and persuade potential customers. Without training, salespeople may come off as pushy or insincere, which can turn off potential customers. They must be able to effectively address customer concerns and communicate effectively to complete the sales process. Customer service plays a significant role in converting leads into customers. A survey by found that poor customer service is the top reason customers do not return to a dealership. Dealerships can solve this issue by ensuring that their customer service is top-notch and responsive to customer needs and concerns by providing clear information about the cars they sell.

5) Price Competition

Price is also important when it comes to converting leads into customers. A study by J.D. Power found that price is the most important factor for car buyers when making a purchase decision. If a dealership is not competitive in price, it can be difficult to close sales as potential customers may be more likely to shop around and find a better deal elsewhere.

6) Ensure You Have Available Inventory to Sell

Inventory is also critical in converting leads into customers. Cox Automotive found that a lack of inventory is one of the top reasons car buyers leave a dealership without purchasing. Therefore, dealerships should regularly monitor their inventory levels to ensure they have a variety of cars available for customers. When you have the inventory your customers are looking for, you increase the likelihood of them finding a vehicle at your store that meets their needs and preference.

7) Overcoming Challenges to Convert Leads into Customers

Understanding why you’re not converting leads into customers is key to increasing sales. To generate more business from car buyers, you must focus on follow-up, personalizing communication, lead qualification, effective sales training, customer service, competitive pricing, and inventory. By addressing issues and implementing strategies to overcome challenges, dealerships can improve their conversion rates and increase sales.

About the Contributor

Sean Toussi is CEO of Glo3D, a tech startup. He is also a licensed architect, speaker at various events, and a Forbes Magazine Technology Council Member. 

Author: Alissa Frey

Digital Dealer