In the first quarter of any given year, we are often asked by Sales Managers, General Manager and Dealer Principals alike, “What should be the focus of our variable training this year?” The question is also designed to ignite a deeper discussion about current and coming retail trends and the opportunities that progressive dealerships and dealer groups can target in their training activities to ensure a successful year.
The following represents needed or opportune areas of variable training for most dealer groups (all can be facilitated in-dealership and customized by most training organizations):
SHOWROOM SALES PROCESS:
“It’s hard to teach a man to fish when the fish have been jumping in the boat.” This somewhat sums up the past 3 years of pandemic selling. Sales Consultants sold cars in an era of demand far outstripping supply, and as a result, often did not have to work or follow a sales process to sell a new/pre-owned vehicle. The pendulum has swung back. As dealership inventory levels have begun to normalize (most OEM’s), competition has intensified as customers once again have choices and are not as eager or desperate. Many Sales Consultants hired during the pandemic were not taught a sales process (arguably not needed at the time) while experienced Sales Consultants simply abandoned theirs. Today, dealer groups are realizing that not only do they need to return to a sales process, but that it needs to be updated and streamlined to reflect what customers really want today with respect to a showroom experience. Many pre and post-pandemic sales processes are bloated, too long, with too many steps, inefficient and laden with “old school” attitudes of hiding, omitting or withholding information.
DIGITAL SALES PROCESS:
Up to 50% of customers will e-mail a dealership prior to visiting the showroom.
The purpose of replying to an e-lead inquiry is to either secure a showroom appointment or to continue the conversation. As simple as this sounds, this is often misunderstood as many dealerships either provide an avalanche of information (without creating a two-way conversation) or treat e-leads as an inconvenience or worse, an annoyance. Effectively selling more e-leads requires a disciplined DIGITAL SALES PROCESS. You have a process for customers that visit your bricks and mortar dealership; you also need a process for customers that visit your digital dealership. Metrics also need to be established to determine effectiveness. Hint; many dealerships have too few Internet Sales Consultants responding to too many e-leads. If your Sales Consultants were meeting 5 or 6 customers a day on the lot, you would probably hire more Sales Consultants. How many e-leads should Internet Sales Consultant work with in order to maintain targeted closing ratios? Call or e-mail me and I can provide some current industry guidelines.
WALK-AROUND “EXPRESS” VEHICLE PRESENTATIONS:
The Gray Whale, the White Rhinoceros and the Siberian Tiger were once on the endangered list and have been miraculously saved from extinction. The WALK-AROUND VEHICLE PRESENTATION is now on the endangered list. For decades, a WALK-AROUND VEHICLE PRESENTATION has been the staple of almost any showroom sales process, if not the climax and main event. Yet over the past few years it has diminished, and in many dealerships it has vanished completely. Today, a well-planned, informative, enthusiastic and choreographed WALK-AROUND “EXPRESS” VEHICLE PRESENTATION can be the singular defining reason as to why a customer chooses your dealership versus a direct (same manufacturer) competitor. It also tremendously improves the customer’s showroom experience. And YES, there are even creative (tech) approaches to facilitating dynamic vehicle presentations without an actual vehicle!
PORTFOLIO MANAGEMENT:
“Companies can boost profits by almost 100% by retaining just 5% more of their current customers” (Harvard Business Review).
During the pandemic and post-pandemic, many portfolio management processes simply vanished. Moreover, many Portfolio Managers and Sales Consultants are (admittedly) reluctant to reach out to 3 and 4-year-old customers as present-day higher interest rates, vehicle price increases and continuing inventory challenges make it much more challenging to exchange and upgrade customers into newer vehicles; “What do you mean my payment will go up $220/month?!”. However, as we are still in an era of pent-up demand, there is much opportunity, positive messaging and proactive sales approaches that can bring customers forward and renew maturing ones, despite the challenges.
DATABASE SELLING - ORPHAN CUSTOMERS:
“Get on the phone and call the orphan lists!”
When Sales Managers bark this order across the showroom floor, it comes across as a trip to the penalty-box for poor sales, inactivity or a make-work project for the new guy. However, there is gold in them thar hills! Outbound phone calls, texts, videos and AI can significantly increase individual and showroom sales performance. Sales Consultants will sell new/pre-owned vehicles immediately by connecting with customers that already do business your dealership. However, Sales Consultants need training with respect to the right attitude, approach, messaging and process when database selling. Selling to a dealership’s ORPHAN CUSTOMERS is a privilege!
NON-PRIME/SUB-PRIME FINANCIAL SERVICES:
The non-prime/sub-prime sector of Canada’s retail automotive landscape typically represents 27% of the total market. Today it is topping 30%. Can you afford to serve only 70% of your market and turn the other 30% away to your competitors? Non-Prime/Sub-Prime is not just understanding how to get credit-challenged customers approved, but rather a mind-shift to view and embrace this market with the creation of an entirely new sales department. Effective Non-Prime/Sub-Prime training includes 4 components:
1. Creating a Non-Prime/Sub-Prime Sales Department
2. Creating a Marketing Plan and marketing strategies that attract non-rime/sub-prime customers (not just buying leads)
3. A NON-PRIME/SUB-PRIME SALES PROCESS
4. Understanding the various lender appetites and how to get non-prime/sub-prime customers approved
FINANCIAL SERVICES:
If Financial Services Departments wish to remain viable over the long term, they need to change with the times. It needs to:
1. Update the speed and efficiency by which customers are transitioned into
this office once a vehicle is sold on the showroom floor.
2. Update the FINANCIAL SERVICE SALES PROCESS with more impactful
presentations and fewer products offered.
3. Update and embrace other communication/selling methods and tools for the sale of Financial Services products (e.g.: Zooom video-conferencing
turnovers, telephone turnovers, sales presentation videos, product videos, e-mail, etc.).
SALES MANAGEMENT PRIORITIES and TASKS:
Various industry studies indicate that the average Sales Manager is spending up to 80% of their time in NON-sales related activities, juggling up to 30 or more tasks in any given week. Most are inundated with more administrative duties and paperwork than ever in the history of the retail auto industry while also mastering numerous technologies; DMS’s, CRM’s, desking tools, appraisal tools, etc. Many of today’s Sales Managers have evolved to become sales administrators and no longer know what the job of a sales manager truly is, or the priorities of the job. Do you really want people in leadership positions stocking in vehicles, commissioning deals, doing dealer trades and the plethora of other mundane tasks that keep them chained to a desk and shooing away Sales Consultants? What do North America’s most successful Sales Managers do every day? Hint: There are 4 things that an effective Sales Manager should be doing on a daily basis. Call or e-mail me and I will share them with you.
Sales Managers (more than ever) also need to learn and embrace various different styles and approaches to leading teams. Sales Consultants don’t leave dealerships, they leave bosses. Leadership training not only opens up an entire new world of effective leadership, but has an immediate impact on bottom-line; happier Sales Consultants, increased sales productivity, less turnover, etc. Leadership training also helps leaders (of all ages) to better understand, motivate and lead younger (Gen Z) teams – and keep them!
Our team of trainers and consultants assist dealerships and dealer groups to prioritize, create, customize, schedule and facilitate in-dealership training, live off-site seminar training and online training to take advantage of the ever-changing market – and its silver lining.
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
