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Building a Sales Funnel in Automotive Sales
Get to know the automotive sales funnel and see how to create one that brings paying customers into your used car dealership.
If you’re talking with marketing people in your used car dealership, the chances are that they’ll mention a sales funnel at some point. And for good reason!
This concept can turn curious visitors into paying customers, whether you’re selling one car to a private buyer or a whole fleet to a business.
So, let’s see what exactly an automotive sales funnel is and how you can build one that works for your dealership.
What is a sales funnel in the automotive niche? A stage-by-stage breakdown
Imagine a funnel. An engine oil funnel, if you’d like.
It looks wider at the top and narrows down at the bottom. That’s exactly how a sales funnel works.
At the top, you have a wide range of potential customers: some are browsing, others are considering their options. As they move through the funnel, the number of serious buyers narrows, leaving you with people who are ready to buy by the time they reach the bottom.
We will depict a sales funnel that looks like this, but your specific model may vary depending on how you run your dealership. Still, the core idea remains the same.
If you’d like to increase the number of those who reach the bottom of the funnel and boost your profitability, you need to understand all stages of an automotive sales funnel.
Let’s start with the first stage where people first learn about your business: Awareness.
Awareness
Awareness is the stage of an automotive purchase funnel where potential customers first discover your dealership through marketing channels like online ads, social media, or referrals.
We’ll give you an example from eCarsTrade, our used-car auction platform. Even our blog posts, like the one you’re reading right now, can be used to build awareness of the eCarsTrade brand.
For instance, a dealer could look up importing cars into Germany, see that we provide readers with useful and relevant information, and click to learn more about our services.
That way, we’ve not only helped somebody with their research, but we’ve also drawn them into the top of our sales funnel. And by positioning ourselves as a trusted resource, we increase the chances that they’ll continue moving through the funnel.
► KPIs to track on the Awareness level
To make sure you’re effectively increasing your dealership’s brand visibility and attracting potential customers to your site, track these key performance indicators (KPIs):
- Website traffic: Monitor the number of visitors to your site, especially from first-time users.
- Social media engagement: Track how many people see and interact with your posts or ads.
- Click-through rates (CTR): Measure how many users click on your ads or social media posts to visit your site.
- New leads generated: Keep an eye on how many new potential customers you’re bringing in through various channels.
Interest
Now that you’ve caught the reader’s eye, the next step is to spark their interest. You can encourage visitors to explore your website, check out your inventory (quality car photos are crucial here!), or learn more about your business.
You want to keep them engaged and offer the information they need—think vehicle details, pricing, or even special deals.
For example, many cars that we show on eCarsTrade come with details such as equipment specifications and service history.
That’s how we keep potential buyers interested and get them thinking about how the car they’re looking at is a great find.
► KPIs to track on the Interest level
The number of people on the Interest level will be lower than on the Awareness level, and that’s completely normal in the car sales pipeline.
At this stage, potential customers are more engaged but are still not sure if they want to buy from your dealership. So, you should track their interest with these KPIs and keep them moving through the funnel.
- Time spent on website pages: Check how long visitors stay on key pages, such as vehicle listings or service offerings.
- Bounce rate: Measure the percentage of visitors who leave your website after viewing only one page.
- Repeat visitors: Track how many people are coming back to your site after their first visit.
- Contact form inquiries: See how many visitors are reaching out with questions, looking for more info, or chatting with your support team.
Desire
Nope, we’re not advertising a fragrance—desire really is a funnel stage in which potential buyers are considering making a purchase.
They’re comparing your offers to competitors and reading online reviews. So, don’t forget to respond to all the reviews you receive; both positive and negative ones.
This stage is where you nurture the customers’ interest and encourage them to take the next step, whether it’s requesting a quote, visiting your lot, or placing a bulk order.
► KPIs to track on the Desire level
If buyers have reached the Desire stage, that means that they are seriously considering your dealership. So, you should track the following KPIs to see how close they are to making a purchase.
- Quote requests or price inquiries: Track how many visitors are reaching out for pricing details or quotes.
- Lead response time: This indicator isn’t about the customers—it’s about your team. How quickly you respond to inquiries can make a big difference in moving potential buyers forward, so make sure you include fast response times and efficient communication skills in your sales staff training.
Action
Yay, you’re down to the last, the most important funnel level! This is where all your efforts pay off, as buyers are ready to make a purchase and bring money into your dealership.
Your task now is to ensure a smooth buying process so you can close the deal and turn all that hard work into profits.
For instance, we achieve this by making buying possible in a few clicks, which helps our customers complete their transactions quickly and easily.
The easier you make it for customers to take action, the more likely they are to follow through and complete the sale, turning all that interest into real profits.
► KPIs to track on the Action level
The final stage of the sales funnel means that buyers are ready to seal the deal. Tracking the indicators shown below can help you see if there’s room for improvement in your purchasing process and ensure you’re not losing customers at the last step.
- Checkout or purchase completion rate: See how often customers start and successfully complete their purchases.
- Abandoned transactions: Track how many potential buyers begin the buying process but leave before finishing. You’ll also see this indicator under the name cart abandonment.
- Sales cycle length: Measure how long it takes from the first interaction to the final sale. A shorter cycle often means a smoother, more efficient process.
Tools and tips to make the sales pipeline creation easier
Alright, now you’ve seen all stages of an automotive sales funnel. But we’ll walk you through them again.
This time, however, we’ll focus on how the right tools and best practices can help you create a strong sales pipeline from the ground up, making it easier to guide customers through each stage and sell more cars.
Awareness and Interest tools and tips
At the top of the funnel, your goal is to attract attention and start generating leads. Knowing how to generate leads in car sales is essential for keeping your funnel always full of potential buyers.
- Key tools: Google Ads and Facebook Ads are great for targeting potential buyers in your area. Both platforms allow you to show ads to people searching for cars or those who fit your ideal customer profile.
A sponsored Facebook ad for a used car dealership
- Pro tip: In addition to paid ads, make sure your website is simple, easy to navigate, and packed with clear vehicle listings, prices, and high-quality photos. A well-designed page keeps visitors engaged and increases the chances of turning them into leads!
Desire tools and tips
Once you’ve generated a list of interested customers, you need to redirect their desire to your dealership by highlighting your cars or services.
- Key tools: You’ll best add to this desire by directly emailing those who have shown interest in your cars. Services like Mailchimp or Constant Contact can help you automate personalized follow-up emails, reminding customers about your inventory, special offers, and the benefits of buying from your dealership.
- Pro tip: Do you know what can make a deal immediately sound more desirable? The sense of urgency. That’s why you could highlight limited-time offers or exclusive deals to encourage quicker action.
Action tools and tips
When it comes to action, you and your customers have no time to waste. Therefore, you should use the tools that can speed up the buying process and make it as hassle-free as possible.
- Key tools: Implement online payment systems like Stripe or PayPal to offer quick and secure payment options. However, you should also offer local payment methods that your customers are familiar with and trust!
- Pro tip: Be transparent about the purchasing process. Let customers know exactly what to expect with pricing, delivery times, and any extra fees. The more transparent you are, the more comfortable they’ll feel about completing the purchase.
From top to bottom
Hopefully, we’ve managed to demystify the car sales pipeline! Just like a real funnel, your dealership’s sales funnel needs to catch as many potential buyers as possible at the top and filter out the best, most qualified leads at the bottom.
By focusing on the key stages—awareness, interest, desire, and action—you can guide customers through the process smoothly and close more deals.
The bottom line? Keep it simple, use the right tools, and focus on making the experience as easy as possible for your customers. With a well-tuned funnel, you’ll not only bring in more leads but also turn more of them into satisfied buyers.
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