by Terry MacCauley - Posted 1 day ago
In today’s digital-first world, internet leads are one of a car dealership's most valuable opportunities, but you would not know it by listening to some sales floors. And we have visited more showrooms than one can imagine in a calendar year. These leads come from platforms like Google, Facebook, and other online advertising channels. They are often called “fresh” because they come from shoppers actively researching vehicles, ready to engage with a dealership.
Yet, time and again, they get dismissed.
Salespeople label them “bad,” and fingers quickly point at ad agencies or vendors when the numbers do not appear. The reality? These leads are often goldmines if they are worked the right way. The problem is not the leads. It is how we are handling them. As the industry moves out of the traditional "busy" season and into a slower cycle, expecting the same lead volume or performance for the same money is unrealistic. Success now depends on closing more of the leads you already have not simply demanding more from your budget. It takes strong leadership, culture, and a trained sales staff.
Let us unpack the numbers, the common pitfalls, and the real strategies to unlock these opportunities before they slip away.
Let us start with the facts. The industry average for converting internet leads to actual car sales typically sits between 10-12%
Third-party leads convert lower, but that does not mean they are throwaways. What it means is that different types of leads require different strategies. Imagine in our families if we raised each and every child with the exact same philosophy or style. It would not be great, and we cannot just "throw-away" our children and call them "bad apples" as we quickly label leads "bad." Before, I digress too much. When the different types of leads are handled with skill and urgency, even those lower-performing leads can deliver at a very high clip.
Meanwhile, repeat and referral customers close at a much higher rate, 70%. So, it is easy to see why internet leads are unfairly compared. But that is like comparing apples to jet engines. These are not the same kinds of shoppers, and they do not require the same approach.
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Sales teams often chalk up poor performance to bad leads, but it is rarely that simple. Here is why internet leads go cold:
Slow Follow-Up: Time is everything. Responding within 10 minutes triples your chances of getting the customer in the store. However, studies show that 23.5% of dealer leads miss a 24-hour follow-up window, and over 13% never make it into the CRM system at all.
Generic Messaging: Online shoppers come in with research. If they receive cookie-cutter replies, they lose interest fast, like immediately with one bad reply.
High Competition: These shoppers are comparing dealerships. We have got one shot to stand out.
No Nurturing Process: Many salespeople expect a quick close. But digital shoppers need follow-up, education, and reassurance before they are ready to buy.
Lack of Training: Internet leads are not like walk-ins. They demand different follow-up techniques, a solid CRM game, and a better understanding of online buyer behavior. Most teams have not been trained to handle that.
This creates a cycle where salespeople blame the leads, and managers report to owners, partners, vendors, spouses, or anyone who will give them sympathy that the campaigns are not working. But that thinking can cost a dealership tens if not hundreds of thousands of dollars in missed opportunities.
The data makes it clear: Internet leads are not broken. They are just underutilized. With the right approach, a dealership receiving 100 internet leads should expect to close 10 to 15 deals. Top-performing salespeople push even higher. For example, phone leads only convert at about 4%, even though 90% of those customers are ready to buy within a week if followed up properly.
Joe Verde, a well-known trainer in the industry (and my favorite), once noted that 78% of customers who physically look at a vehicle are likely to buy, yet average salespeople only close to 20%. And are they not physically looking at our vehicles on our websites? The difference? Execution. The same gap exists with internet leads. National averages hover around 12-14%, but top dealers climb beyond 15% (and it could still go higher) by treating internet leads like their own sales language and mastering it.
As retail slows due to upcoming graduations, school starting back up, election season hesitation, or simple seasonality (every excuse we can find), dealerships cannot rely on pumping the same dollars into ads and expecting more leads. That playbook does not work when consumer attention is scattered.
Instead, the winning move is this: focus on training your salespeople to close more of what you're already getting. Training for the sales and management teams should be year-round, every week, without exception. NO EXCUSES. Even if you do not have a great trainer on staff, lean into YouTube videos, industry leaders willing to train, and anything you can find to make it happen without fail
It is not about lead volume anymore. It is about lead conversion.
If we want better results from internet leads, we must evolve our strategy. Here are my top 7 non-negotiables that will make a difference:
Respond in under 10 minutes every time. DEMAND IT.
Set up automation alerts or staff rotation to ensure leads are never ignored. If someone shirks the responsibility, they lose the privilege for a set time before cycling back in. Create a culture that ridicules slow, poor follow-up.
Mention specific models or pages the customer viewed.
Tailor the conversation to their needs. No one wants a robot response. If they inquired about a Red 2022 Hyundai Sonata, respond about the exact vehicle with excitement and eagerness to meet their needs, not ours.
Do not just email. TEXT, call, DM, or whatever the customer prefers, not what we prefer because it is easy.
Stay consistent with messaging and always keep it moving forward.
99% of people want to drive before they buy.
Offer this early and often. That alone can close the deal.
71% of buyers purchase because they like and trust their salesperson.
Do not rush. Closing rates jump from 6% to 57% when you invest over 100 minutes with the customer.
Train on CRM follow-up, digital behaviors, and lead tracking.
Prioritize leads based on source and intent. Not all leads are created equal, but they all deserve attention.
Promote events, test drive incentives, or even small perks like gift cards.
Use urgency the right way with authenticity and with high value.
Too often, agencies or vendors are blamed when leads do not convert. But the hard truth is that conversion starts and ends in the store. With some dealers hitting 16% to 20% lead-to-sale rates, there is no reason your team cannot rise above the industry average. Also, when closing ratios creep above 20%, just be careful to make sure ALL LEADS are getting logged. One easy way to please the manager with a higher closing ratio is to log less.
Train better. Follow up faster. Personalize more. These are free adjustments with significant, culture-changing upsides.
Internet leads are not a mystery anymore. They are an underutilized revenue stream waiting to be unlocked.
Internet leads are not the problem. They are the opportunity. As seasonal traffic slows, your advertising dollars will not magically go further. But your people can. Get them the tools, the training, and the time they need to perform.
When dealerships stop treating leads like magic tricks and start treating them like relationships to build, the numbers start to shift. That is not theory; it is a cold, hard fact. Let us stop chasing “more” and start doing more with what we have got.
The solution is already in your CRM. It just needs to be worked right. At Big Time Advertising & Marketing, we have a team full of former managers in the car business who love to train; if we can help in any way, shape, or form, then do not hesitate to reach out.
-by Terry MacCauley, Founder & CEO
