Sales Funnel

The sales funnel refers to the step-by-step process that a potential car buyer goes through from initial contact to final sale, and how the dealership manages each stage. In a dealership context, typical stages might include: Lead (the customer shows interest, e.g., internet inquiry or phone call), Appointment (scheduling a visit or test drive), Show (customer actually arrives at the dealership), Demo (they take a test drive), Deal (negotiation and paperwork), and Delivery (car is delivered to the customer, completing the sale). Each level of the funnel will have a certain drop-off; for example, not all leads turn into appointments, and not all appointments turn into sales. Canadian dealerships track funnel metrics to see where they can improve – maybe lots of online leads but few shows might indicate a need for better follow-up or enticing reasons to visit (like a special event or promotion). The funnel concept helps ensure every potential customer is guided forward: e.g., after a test drive (Demo stage), the salesperson should attempt to move to the Deal stage by asking for the sale or at least a follow-up appointment. Tools like CRM systems help manage this funnel by reminding salespeople of next steps. Also, sales funnel analysis might show differences in performance: e.g., one salesperson has a great appointment-to-show ratio, perhaps due to strong confirmation calls, whereas another might need training. By monitoring and refining each stage of the sales funnel, dealerships aim to increase their overall closing rate. It's about recognizing car buying is a process and optimizing each interaction to keep the customer engaged down to the final purchase.