In lead management, one question often arises: How can dealers improve lead follow-up rates?
Manufacturers frequently believe their dealers are contacting around 75% leads by phone, yet the reality is often far different.
As discussed in our previous post about lead contact performance, only 28% of leads are typically contacted by phone, leaving a considerable gap between expectations and actual performance.
This difference - the "Reality Gap" - raises an important question: If dealers aren’t picking up the phone, what are they doing instead?
Let’s explore common reasons why follow-up calls might not be happening and how understanding these behaviours can help dealers and brands improve lead follow-up rates.
Why Improving Lead Follow-Up Rates Matters
A low phone contact rate means fewer opportunities to engage with potential customers.
Dealers who focus on improving follow-up rates often see better customer interactions, more test drives, and increased conversions. But achieving this requires understanding what is holding teams back.
Here are some common barriers to phone contact and how they contribute to missed opportunities.
1. Over-Reliance on Emails
Emails are a popular choice for lead follow-up. They are easy to send, automate, and track, making them a convenient option for busy dealerships.
However, emails lack the immediacy and personal touch that a phone call provides. Many customers prefer direct communication, especially when they have specific questions or need guidance.
Dealers looking to improve lead follow-up rates should view emails as a complement to, not a replacement for, phone calls. Combining the two can create a balanced and more effective approach.
2. Focusing on “Hotter” Leads
Sales teams sometimes prioritise leads they believe are ready to make a purchase while neglecting others. While this may seem logical, it leaves out many prospects who could convert with a bit of nurturing.
Consistent follow-up with ALL leads - not just the “hot” ones - can significantly improve lead follow-up rates.
Even a short phone call can keep colder leads engaged and lay the groundwork for future sales.
3. Resource Constraints and Competing Priorities
Dealerships are busy environments.
Sales teams often juggle multiple responsibilities, from managing walk-in customers to handling paperwork and finalising deals. With all these competing priorities, lead follow-up - particularly phone calls - can be deprioritised.
Addressing resource constraints and streamlining processes can help dealers dedicate more time to follow-ups, leading to better engagement and improved follow-up rates.
4. Relying Too Much on Automation
Automated CRM systems, such as Salesforce, are valuable tools for managing leads, but they can create a false sense of security. Automated emails and messages might reach leads, but they cannot replicate the trust and rapport of a personal phone call.
To truly improve lead follow-up rates, dealers should balance automation with human interaction. Automation can be great for certain touch points in the sales process, but timely phone calls are often what drive leads to take action.
5. Lack of Accountability and Accurate Tracking
Without clear systems to track follow-up efforts, it is hard to hold teams and individuals accountable for lead contact performance. Dealers might assume they contact more leads than they do, simply because there’s no accurate data to verify the activity of individual sales execs.
Introducing tools to monitor follow-up progress ensures accountability and provides insights into where improvements are needed. This step is crucial for anyone aiming to improve lead follow-up rates.
6. Hesitation to Make Cold Calls
Not every lead gives off obvious buying signals, and some sales teams are hesitant to make calls without clear interest from the customer. This call reluctance can result in missed opportunities to engage and move the lead further along in the buying journey.
Proper training and support can help sales teams feel more confident in making calls to all leads, even those that seem less promising. This approach is vital for improving overall follow-up rates.
How Subpar Call Rates Impact Results
Missing out on phone calls does not just affect engagement - it impacts sales, customer relationships, and brand perception. Leads that have not received a call often lose interest or turn to competitors who provide faster and more direct responses.
Phone calls, unlike emails or automated messages, allow dealers to answer questions, address concerns, and personalise the customer experience. That's why the best sales executives still use the telephone.
By focusing on making more calls, dealers can effectively improve lead follow-up rates, build stronger customer connections, and see better outcomes overall.
Closing the Gap
To bridge the "Reality Gap", manufacturers and dealers must work together to identify what is holding back phone follow-ups. Whether it’s resource constraints, over-reliance on automation, or simply not tracking performance effectively, recognising these challenges is the first step.
Once the issues are clear, targeted solutions - like better processes, improved accountability, and training - can help dealers dramatically improve lead follow-up rates.
The question is, what’s stopping your team from making the most of their leads? Recognising the problem is just the start. Taking action is where the real change happens.