My definition of a sales process is a step-by-step approach to selling a vehicle that is documented, trained, coached, enforced, measured and celebrated.
By this definition, most dealerships do not have a SHOWROOM or DIGITAL sales process. It’s understandable; arguably consumer supply and demand and inventory shortages negated the need for a sales process during the pandemic. Customers simply wanted our new and used vehicles, regardless of the customer experience and price. However, now as inventories slowly replenish (most franchises), it is slowly becoming (once again) a buyer’s market where shopping and negotiation have already made a slow comeback.
In the post-pandemic world, many dealerships have struggled to return to a SHOWROOM and DIGITAL sales process. Sales consultants now have to do more work for less money. Hence, it’s difficult to stuff the proverbial cat back in the bag. However, if you operate a dealership that sees the value of a defined, modern sales process, consider the following thoughts to ensure enforcement.
REVIEW YOUR SALES PROCESS DURING RECRUITING and ONBOARDING.
Have your sales process documented on a single page and ensure that during the interview and onboarding process, newly hired sales consultants understand that they will be expected (with training and coaching) to follow the dealership’s prescribed sales process. No surprises.
HIRE SALES CONSULTANTS with NO PREVIOUS AUTOMOTIVE SALES EXPERIENCE.
Hire smart, positive and energetic people that have sales or customer service experience in other industries; big box retail, cell phone retailers, food and hospitality, etc. They are both willing and wanting to follow a sales process and view it as a path to success - in fact they are appreciative. Experienced, recycled sales consultants are more likely to bring bad habits, short cuts, “their way” and a confrontational attitude with Sales Managers.
WHAT ARE YOU PAYING A COMMISSION FOR? DEFINE IT.
Recently a Canadian dealer principal shared with me that he paid out a $13,000 commission on a single vehicle sale (domestic pick-up truck). While this was an anomaly, I still asked the question; “Did you (and the customer) get your money’s worth?” Are you paying commissions simply to have sales consultants’ close deals or to (also) provide a customer experience? Dealerships have paid out record-breaking commissions over the past few years – and yes, while disciplined, hard-working sales consultants most often earn their commissions, many do not – inflated commissions are an accident of the marketplace. Hence, when onboarding sales consultants, define and discuss what is expected in terms of execution of your sales process in exchange for the payment of commission. In other words, commissions are paid out for the facilitation of your sales process and the subsequent delivery of the new/used vehicle.
UPDATE and SIMPLIFY YOUR SALES PROCESS.
10 and 12 step sales processes are history. A fresh, modern sales process need not be more than 5 steps. Sales consultants will be much more able to learn and master a 5-step sales process versus a dated 12-step sales process that looks like an engineering diagram of the New York City sewer system.
POST YOUR SALES PROCESS.
Post your sales process on your meeting room wall, sales manager’s wall, showroom walls, etched on showroom glass, showroom pull-up screens and your website. Expose customers to your sales process (be proud of it!) and keep it in front of your sales consultants and sales managers at all times. If it’s out of sight, it’s out of mind.
TRAIN IT, COACH IT and TALK ABOUT IT.
Partner with a sales trainer/firm that assists your dealership/dealer group to modernize your SHOWROOM and DIGITAL sales processes. Facilitate monthly/bi-monthly or quarterly in-dealership training sessions for your sales consultants and sales managers.
SPECIAL NOTE: Provincial government grants are still available in most provinces that can cover up to 80% of the cost of sales and leadership training.
Repetition is the mother of learning. Facilitate 60-90-minute dedicated weekly training sessions that focus on the intimate details of your sales process and customer challenges.
Create a “SALES TRAINER-IN-A-BOX” set of tools
(we can create a customized kit for your dealership):
1 Page Sales Process Document
A Sales Process Manual/Guidebook
Sales Process PowerPoint Presentations (for each step)
A Core Values and Culture Document
HAVE YOUR SALES MANAGERS MEET CUSTOMERS WITHIN 10 MINUTES OF THEIR SHOWROOM VISIT.
There are at least a dozen benefits to Sales Managers meeting customers early in their showroom visit. With respect to enforcing your sales process, sales managers are able to determine the customer’s interest and willingness to actively participate in your sales process. Moreover, sales managers are simply able to plant seeds that make your sales process a forgone conclusion; “Mike, Laura, I would love to get your opinion on the new 2024 ________ after you’ve driven it. I will also make sure that we provide you with detailed pricing and monthly payments in the form of a printed proposal.”
ENSURE THAT YOUR SALES MANAGERS ARE ALIGNED.
Within any given dealership, one sales manager is the “great guy”, while the other is the “#$^&”+@”. Truth of the matter is that the latter is often the disciplinarian who enforces your sales process, while that other sales manager “waffles” and allows sales consultants to skip steps – in an effort to have sales consultants like him/her. The leadership team must establish the non-negotiable steps of your sales process that must be completed every time, without fail and without excuses. For example, some dealerships will not provide a payment-based proposal until the customer has been treated to a sales consultant-accompanied demonstration drive. That being said, the sales managers are also willing to get involved in the sale to motivate and coax the customer to experience the vehicle – to assist their sales consultants in the completion of the required steps. Hence, the sales managers must be aligned and willing to enforce the sales process to ensure the desirable outcomes; a better customer purchase experience and a higher closing ratio.
ASK SALES CONSULTANTS QUESTIONS BEFORE PROVIDING PRICE and PAYMENTS ON THE DESK (6 QUESTIONS).
Whether sales managers work from an office or an open showroom tower, consider posting a laminate of 5 or 6 questions at their work stations. The questions are designed to ensure the alignment and consistency of the sales managers before providing price and payment proposals and trade-in values.
Examples of questions:
1. Is your customer here or online?
2. Where are you in the sales process?
3. Has your customer SELECTED a vehicle?
4. Has your customer DRIVEN a vehicle?
5. Are all of the DECISION MAKERS here?
6. Did you ASK your customer to BUY the vehicle?
If sales managers are not satisfied with the answers to the questions (feeling that the sales consultant is complacent, lazy, short-cutting, etc.), the sales consultant DOES NOT PASS GO. “The desk is closed until further notice.”
CELEBRATE and REWARD IT.
A sales process should be something that the dealership is proud of and celebrates whenever the opportunity arises. As a dealer principal/general manager, acknowledge (in-person or by e-mail) a sales consultant that has delivered excellence (a 5-star Google Review that raves about the purchase experience). Catch sales consultants in the act and compliment (or reward) them in the delivery of an incredible vehicle presentation or returning from an accompanied, dynamic demonstration drive. From time to time, slip a sales consultant a $10 gas card, Starbucks gift card, Amazon gift card, etc. Acknowledge and recognize sales consultants at morning huddles or sales meetings that spent the time with a customer to build a relationship and guide them through your sales process. Focus on and celebrate vehicle presentation and demonstration drive ratios instead of just closing ratios.
While many dealerships are on an eternal quest for “the next big thing” to sell more cars; technology tools, social media, artificial intelligence, etc., the most reliable, the unsung hero and the magic bullet is often the most affordable, implementable and least sexy – your dealership’s sales process. So why not enforce it.
Chris Schulthies is the president of Toronto-based Wye Management.
Wye Management provides sales and management training (showroom and digital) for dealerships, dealer groups, OEMs and industry suppliers in Canada and the U.S.
E-mail: cschulthies@wyemanagement.com
Cell: 416.908.6346
