MEASURING THE CLOSE RATE

[NEWKID]

JUST WONDERING HOW, IN PRACTICAL TERMS, WHAT DIFFERENT METHODS YOU USE TO MEASURE YOUR SALESMENS CLOSING RATIOS?

DOES THE SALES MANAGER COUNT WALKINS? DO YOU LEAVE IT TO THE SALESMEN TO HONESTLY REPORT HOW MANY CUSTOMERS THEY DEALT WITH?

ANYBODY USE MECHANICAL COUNTING DEVICES?

DO YOU FILTER OUT DREAMERS?

[dcreamer]

The closing ratio is only part of a larger process of providing help and assistance to the sales force. In a lot of stores, any attempt to figure closing ratios, is perceived as big brother's way of being able to hammer managers and salespeople when its too low.
As a dealer or GM you want and need to know a lot of things about your traffic. How much is just the beginning. Where is it coming from, what days are best, is it early-mid day-or late, how much is from the phone, the internet, what advertising is effective and what isn't? All this needs to be tracked on an individual salesperson basis and rolled up to determine store averages and talley's.
If the employees think the reason for diligently collecting the neccessary data benefits them you will of course get much better information. If not they will manipulate the numbers to please you.
The best way I've found to get their cooperation is to use the data for a bang up (no body slips through the cracks)follow-up system that helps them make more deals.
Now to answer your question. You should count everybody including the UPS driver who walks through the store everyday. They are all legitimate opportunities to do business. Now after some enterprising young salesperson gets the UPS driver to slow down and look at a vehicle, all subsequent visits are logged as a be-back.
First time ups should close at a rate of twenty percent. Be-backs should come back at a rate of fifty to sixty percent with proper follow-up and close at twenty-five percent. The roll gives you a total closing ratio of thirty to thirty-five percent. Hope this helps.

[dcreamer]

Like Paul harvey says "and now for the rest of the story." I tried to edit my previous posting but was unable to.
Anyway, as to the mechanics of how you collect your data. Depending on some variables such as volume and potential volume you have a number of different ways to go. A small rural store (are there any left) may want an incentive based system to achieve both good results and ROI. Larger metro stores might consider a combination of greeters, computer kiosk and follow-up. I would definitely recommend a call tracking and recording system. They are a strong tool in the right hands. Good luck and great selling.