The Cost of Being Average: How leads end up with the competition.
- Anthony Sudon
- Nov 18
- 3 min read
30-Second Takeaway: Industry data shows 23.5% of dealer leads miss 24-hour follow-up, and 13.3% vanish before entering the CRM. Yet the average dealership achieves only 19.3% customer retention while top performers push above 35%. Your competition isn't just faster at responding, they're systematically better at nurturing relationships, following up consistently, and keeping customers for life. The follow-up gap is where good dealerships separate from great ones.
The Follow-Up Failure That's Feeding Your Competition
Getting the lead is just the beginning. What happens next determines whether that prospect becomes your customer or your competitor's.
The numbers are sobering:
23.5% of dealership leads never receive 24-hour follow-up
13.3% of leads disappear before ever making it into the CRM
43% of qualified leads are mishandled through missed calls, delayed follow-up, or poor communication
That means nearly half of your potential customers are experiencing some form of poor follow-up process that leaves them feeling ignored, forgotten, or undervalued.
The Retention Reality Check
Here's the metric that reveals everything:
Only 19.3% of monthly dealership sales come from existing customers.
Translation:
Most dealerships are burning through their customer base and constantly having to find new buyers instead of nurturing the relationships they've already built.
Meanwhile, top-performing dealers push their retention rates above 35%. What does that mean? They're getting nearly twice as much business from customers who already know and trust them.
Your Competition's Systematic Advantage
The dealerships consistently beating you for market share aren't necessarily better at generating leads. They're better at converting and keeping the leads they get.
While you're hoping customers remember to call back, your competition is:
Following up within hours, not days across multiple channels
Providing value in every interaction instead of generic "just checking in" messages
Tracking customer preferences and personalizing communication accordingly
Maintaining systematic 14-day follow-up processes that keep leads engaged
Converting service customers into repeat buyers through strategic retention programs
The Service Drive Gold Mine
74% of customers who service their vehicles at the selling dealership are more likely to purchase their next vehicle from the same dealer.
Yet industry data shows most service customers didn't originally buy their car from the dealership where they're getting it serviced. Your competition is capturing these high-value prospects while you're missing the opportunity sitting in your own service drive.
What Competitive Follow-Up Really Looks Like
Top-performing dealerships treat follow-up as a competitive weapon:
Multiple contact attempts using phone, email, and text
Value-driven messaging that addresses specific customer needs
Systematic retention programs that keep past customers engaged
Service-to-sales conversion processes that turn maintenance visits into trade opportunities
Long-term relationship building that creates customers for life
The Competitive Intelligence Gap
You have no idea how your follow-up process compares to the dealership that's been consistently outselling you. While you think your CRM system and basic email templates are adequate, your competition might be operating with:
Faster response protocols that capture leads while they're still hot
Higher-quality initial responses that build trust and move deals forward
More sophisticated nurturing sequences that keep prospects engaged long-term
Better retention strategies that turn one-time buyers into lifelong customers
The Cost of Following Up Like Everyone Else
When your follow-up is average, you get average results. But your competition isn't trying to be average. They are systematically outperforming you in the areas that matter most for long-term profitability.
Ready to discover exactly where your competition is beating you?
For a limited time, when you purchase an Applied Concepts Engagement Intelligence assessment for your dealership, you'll receive a complete follow-up and retention analysis of one local competitor absolutely free.
See exactly how your lead nurturing, response quality, and customer retention strategies stack up against the dealership that's been taking market share from you.
Or
Call 800-393-CARS (2277)
Join Applied Concepts at NADA 2026
Sources:
· LLCBuddy
· Foureyes 2024 benchmarks (80+ million website visitors)
· FRIKINtech 2023 data
· Cox Automotive study
