Conversion rates for car sales are better under the agency model than the traditional franchise model, according to Polestar UK CEO Jonathan Goodman.
Talking on today’s Autocar Business webinar on the topic of the agency model, Goodman said he has seen a 10% to 13% conversion rate, with that figure based on a sale within 60 days of the first time a customer touches a Polestar (for example, in a showroom, a test drive).
“If you count every person walking into a dealer [for a franchised model], it’s probably about 10% conversion rate,” he said. “We’re a new brand and to be at that conversion rate as a new brand which isn’t very well known is a very healthy position. We’ve looking to increase that rate moving forward.”
However, Duncan McPhee, COO of Lookers, which uses Polestar’s agency model alongside the franchise model for other brands, said there hasn’t been a marked change at Lookers: “We’ve not seen much of a difference looking at conversion on the franchise model where customer deals with us directly compared to that of an online model.
