Calculation for Exclusive Automotive Leads

It is seen that getting the automotive leads is the hardest part for any dealership. After the leads have been acquired, the dealership staff knows that the offer and good negotiation skill would do the trick. This is why dealers spend a lot of money to ensure that they get good quality leads which can be successfully converted into sales. The procuring of automotive leads has been made through many internet websites which provide the leads to the dealership cutting their time and energy spent on obtaining the leads by ninety percent. There are usually two popular automotive leads which dealers go for – direct mail and exclusive leads.

The exclusive leads are sold one time and contain a lot of specific information regarding consumer choices and capability to spend. Due to the detailed data, it is possible to convert the lead into sales easily which makes the leads quite costly. But, as aforementioned, the conversion rate is high and the below mentioned calculation can give an example as to what the ROI is going to be:

Let the cost of a single lead = 30 dollars

If the dealer buys 100 leads, then the total investment becomes = 3000 dollars

Now, let the profit per conversion be equal to 1500 dollars.

As the conversion rate is higher, let it between 15 – 20 percent. This means that out of 100, almost 15 to 20 people will buy the car. Therefore the collective profit from the investment comes out to be 22500 or 30000 dollars.

The aforementioned calculations can state that the return on investment acquired from the exclusive leads is worth their cost. However, it should be noted that the per sale profit can vary depending on the car.

Tags:

Leave a Reply