I have been rereading The Tipping Point, a very interesting book that discusses why something goes viral (which has nothing to do with this post.)

In it Malcolm Gladwell references some case studies on the power of nonverbal cues.  He mentions a study, which you can read about here, in which they tested students with headphones.  In a nutshell they told the students they were testing to see how well the headphones fit.  They were divided in two and one group listened to a message while shaking their heads.  The other group was told to nod as they listened to the message.  

The group that was nodding their heads had a positive opinion of the message and the ones shaking had a negative.  The study found that the nodding or shaking didn't impact their opinion but reinforced it.  Richard Petty (no, not that one), co-author of the study said,

"If we are nodding our heads up and down, we gain confidence in what we are thinking.  But when we shake our heads from side to side. we lose confidence in our own thoughts."

Nonverbal communication is huge.  We all know the best time to sell a car is right after we sold one because the confidence is high and our body language and posture reflect that confidence.

As salespeople it's important to get our minds right.  

There is also a huge importance is getting positive commitments from customers.  I don't want to know what they don't like, I want to know what they do like and I need them to share why with me.  This study shows that, "This is a great color, isn't it?" is more than a simple trial close question.

Am I going to sell a Focus to a customer looking for a F150 by simply nodding my head while asking questions?  Of course not.  But I'm also not going to sell an F150 to a customer looking for an F150 by demonstrating negative body language. 

Speaking of questions, here's one:  Most dealerships spend time on word tracks or scripts to make sure their salespeople are ready to handle customers.  Time is spent teaching product knowledge.  How do we teach body language?  

I want to speculate for a moment, and I want you to know that I have zero knowledge of franchise agreements.  This is just an exercise in "what if?".

The manufactures view dealerships as a burden.  We found that out after the government told Chrysler and GM to restructure and they decided to cut costs by cutting dealers.  But the manufacturers have always needed dealers to help them move their inventory.

Ford is using social media to roll out and create buzz for their new Fiesta.  They are at the point right now where you can log on and reserve an allocation, and to help incentivize potential customers they are offering free Sync to those that register online and raise their hands.  The leads are then given to the closest dealership (unless a specific dealership is specified) and the customer is directed to go in and work out their price (please correct me if I'm off base).  Ford will then follow up with the guest and send them updates until their car shows up.  The customer then goes into the dealership and takes delivery.

In this process the dealership is in control twice, the pricing and the delivery.  The manufacturer takes care of the rest.  How far away are we from Ford setting the price?

If you survey customers I bet the majority would say the dislike negotiation.  Most sales processes have been designed to maximize profits at the cost of customer satisfaction (I know I'm generalizing here).  Couldn't the manufacturer eliminate this and expect to see an increase in customer satisfaction?  Ford could get rid of dealerships without cutting dealerships (negative PR) and just circumventing them.  Their inventory would, in a sense, be pre-sold so supply would always equal demand.  Resale values would increase because less rebates would be needed to move obsolete inventory.  A dealership would then become a place to get your vehicle serviced and a used car store.

The big objection to this would be customers need to drive a car before buying.  If this is true then how come ebay motors is successful?  I know a guy that purchased a GT 500 on ebay.  A used high performance $40K automobile without driving it.  The upcoming generation is used to doing business online.

As I wrote earlier, I'm just speculating.  But say this is possible.  What can a dealer do?  I believe we are in for a major shift in the way cars are sold. Things are becoming more transparent.  A great post was written on the death of the desk.  Brick and mortar stores are dwindling, from book stores to insurance agents.  What will the future look like?  I see the becoming more of an experience like the Apple Store.  What about you?

I started in the car business in the late 90's.

The majority of our traffic came from the lot or the phone. The follow up cycle was pretty short. We were taught that fresh ups would buy within 7 days. One of the reasons probably had to do with our follow up system (or lack of).

The other reason was that we got involved toward the tail end of this buying cycle. The dealership I worked at wasn't an early adopter of technology, and I can remember getting handed a fax they called an internet lead.

The process was to call and call. I had several people get angry and tell me they wanted to be contacted by email.  I thought they were nerds.

Fast forward to the present. Dealerships are seeing a traffic shift where customers are moving online. The internet gurus tell us that we should follow an internet customer for up to 120 days.

Today we have the tools to help us follow customers for that long and dealerships have email and call campaigns to actively follow these guests and help them with their research.

We can get involved earlier in the buying cycle. Now we have social media. We know that social media is all about relationships. It gives salespeople the ability to keep the initial rapport they established early on in the sales process, and dealerships have an opportunity to broadcast their message to the people that want to hear it.

We can now start the buying cycle for their next vehicle when they take delivery of their current one. Look at what Ford did with the Fiesta. Rather than spend money on thirty second Super Bowl commercials they used social media to influence potential buyers 2 years before the vehicle was to launch.

We'll see how well it works when the vehicle is released this summer, but early indications are that the Fiesta Movement has been a success. The key to social media at the dealership level is the content.  No one wants to friend someone on Facebook and get sold.  I want to start a discussion about the "how".

How can dealers used Facebook and Twitter correctly and effectively to continue the relationship with their sold guests? What are some best-practices when it comes to content?

A recent blog post from Seth Godin echoes what I've been thinking about lately.  Here is my thought for the day: "People don't care what you want.  They care about what they want, and giving them what they want gets you what you want."  Get it?  Let me explain. When we go out and greet a guest on the lot we have an agenda.  We know the steps to the sale, they don't.  Its tempting to want to control the customer and lead them where you want them to go.  Maybe this is why we forget their names (admit it).  We're too busy thinking about what we want to say next.  We may even know what they are going to buy.  But that's the problem, they don't.  They are on the lot because they have a problem.  We gain trust by solving that problem, which requires us to talk about their problem.  Its a process. Think like a customer.  How would you like to be sold?  Shop for a big ticket item and take note on what the salesperson did right and could do better.  Watch how often in a sales process you say "I" instead of "you".  It may suprise you.

I just heard a quote from the Mike Singletary press conference yesterday and I thought it applied to the auto industry right now.  If you want to read the whole transcript you can find it here.  If you're not a die-hard San Francisco 49ers fan here is the quote I latched on to: When you walk on that field you have to know, this is my game. When you start thinking like that and you start acting like that, when things go bad on the field you are able to take a step back and go, ‘We are going to make this happen, it is not going to be like it was before. We are going to take that step and we are going to go to the next step. We are going to win this game. We are going to get over this, we are going to around it, we are going to go under it. Whatever it is, we are going to win this game.' When you start thinking like that, that's when you start winning those kinds of games we played in yesterday. . . . This reminded me of this post from Brian Pasch, and I would like to take his analogy of Offense and Defense a bit further.  As a sales floor are we thinking "This is my game"?  Are we on the offensive?  Or are we sitting back waiting for outside influences to change in our favor? Say what you will, the economy has kicked our butts.  There may be fewer buyers and fewer banks and more choices for  those buyers.  But there are still buyers.  What are you going to do to get them?

I just read this blog post from Seth Godin, and immediately my thoughts turned to selling cars. Seth is basically stating that too much emphasis is placed on the end of the process and not enough on the beginning. Look at your sales process. In my mind successful car salespeople always spent more time outside (on the lot) than inside (presenting the numbers). If a sale is set up correctly, on the right car, the close is so much easier. I know that there may be unforeseeable circumstances (upside down on the trade, for example) but a salesperson should never hold their breath hoping that a payment will sell a car. It doesn’t happen. How many times have you gotten a hug after presenting a trade number? How much of your sales process takes place before you even greet the guest? Think about it. Once, while training a new sales consultant, we watched another salesman take an up. The body language was begrudging at best. He walked up with his hands in his pockets and greeted the customer. I asked the trainee if he thought the salesperson was going to sell the car. The salesperson was outside talking to the customer for fifteen seconds, turned around, and came inside. I asked him what happened and he mumbled something about ‘just looking’ on the way to his desk. Who influenced the outcome of that sale? In every sales meeting in every dealership almost every week across the country someone is preaching attitude. There is a reason for this. Your outlook before you reach a customer may be more important than what you say when you get there. What do you think?

I wanted to take a minute and give you my philosophy on split deals. I do this because I think it represents an overall management philosophy that others don't subscribe to. Here it is: We have too many rules that get in the way. Regarding split deals, I feel we should have 3, maybe 4 concrete rules and let the floor govern themselves.

I am very passionate about processes. I would define a process as steps that lead to an end result. Each store has a sales process that, if followed, make it easier to achieve the goal of selling a vehicle. Your store may have a process for capturing customer information. You may have a follow up process, or a process for handling internet leads. These are necessary. A rule, on the other hand, could be defined as an action with consequences if disobeyed. Some rules are necessary. Too often I feel they actually get in the way of selling cars.

When you implement a rule with consequences you are drawing a line in the sand. Do this or else. When the rule is disobeyed and the hour of reckoning is at hand, a manager has two choices. Enforce punishment or let it slide. If you look the other way your credibility is damaged. There may be cries of favoritism. Management is really backed into a corner at this point. Rules often violate trust. That is why I dislike rules.

Don't get me wrong, certain rules are needed. For instance, show up to work on time. But too often the rules stop us from achieving our objective, which is to sell a car.

Let me illustrate my point with an sample rule. "No trade evaluation until after a demo. We will not look at a trade unless your customer drives a car". I can see why a store would implement such a rule. They may be having a problem with salespeople skipping sales steps. But to me that is a process issue, not a reason for another rule. Look at how the sales staff may view this. First of all, some will lie to you and tell you they did demo the vehicle. Or worse, they may tell the customer they can't evaluate a trade without a demo and thereby possibly lose the guest on the lot. Neither response will lead your store closer to a car deal. The veterans may feel micromanaged. "You don't trust us enough to let us work the deal."

I think it all comes down to trust. I know I am over-simplifying things, but if you have salespeople you don't feel you can trust, get rid of them. Chrysler just eliminated 789 franchises. Management is being reduced in dealerships across the country. You can find good salespeople now.

I would review the rules I have in place in my dealership and evaluate which ones help a salesperson sell a car and which one actually make it more difficult.

Imagine that you are a mechanic. In order to do your job correctly you would need to purchase specific tools. These tools are designed to help you effective complete specific jobs. For example, there is a certain wrench to remove a certain bolt on the front of a certain engine.

What if you ignored your tools and tried to fix everything with a pair of channel locks and a hammer? Not only would the job not get done correctly, it wouldn’t be a very effective use of your time.

As salespeople we have a number of tools at our disposal. I want to use one as an example because I see its misuse quite often. This tool is your dealership’s CRM.

Back in the day each salesperson kept track of their prospects with an archaic filing system, maybe 3 X 5 cards. The quality of the pre-sale and post-sale follow up would depend on the quality of the notes. Lose a card and you would lose a guest. Misfile a card and the customer would receive no follow up. I have even seen Post-it notes used as a follow up system. Ouch!

If only there was a way to store our guests and notes and automatically prompt us when follow up needs to be done. We would never lose a customer again! We could call it a CRM.

Someone out there listened and developed such a system. Now we have these electronic prompts all the time and we are required to spend time in front of a computer entering notes on every guest (which, by the way, we are supposed to call far too often). How is a salesperson supposed to sell cars when they have all this follow-up to do?

Managers, your salespeople are kinking the system. Far too many of them are clicking tasks they have not completed because they don’t understand the tools they have. It would be the same as if I didn’t want to go to the toolbox and grab the specific tool for the job because it’s too far to walk. I have a hammer and those channel locks right here and I think I can get the bolt off without getting the tool.

This is just one example. I’m sure if we took the time we could think of more. What is the solution?

First, there must be accountability. Call tracking helps (although salespeople will say they use their cell phones to make the calls), and so do daily one on ones.

Second, I feel that there must be a “what’s in it for me?” meeting, maybe several, to explain the benefits of using the CRM. Training will go a long way as well. Many salespeople don’t use the tools they have because they may not understand them. There is a great discussion on DrivingSales on how to get salespeople to use the CRM if you need some more ideas.

Third, management should use the CRM, not just salespeople. Managers should be utilizing it to do follow up and handle issues.

So here is the question: What other tools are sitting in the toolbox gathering dust?

My apologies. I know my posts are Sales 101. You probably aren’t going to receive that gem of knowledge that will transform you or your staff into Super Salespeople. For that I am sorry. It’s just that I have realized that no magic potion is out there. Instead we need to be reminded of the basics. Little things add up to big things. I also want to apologize to Detroit Lions fans, but when you’re team goes 0-16 you deserve it. What separates the Lions from the Super Bowl Champion Steelers? Some would say talent but I disagree. I believe both teams have elite talent. Also, because of the salary cap both teams also have the same funds to spend. Why did one team lose every game and another win the title? What does this have to do with selling cars? I believe it comes down to three things: Process, Support, and Professionalism. Process – The Steelers have a great system. They know what players fit that system and draft accordingly. That is why they can plug new talent in and not skip a beat. Does your dealership have a great system? If it is in place are you following that process? Support (or Teamwork) – Do you work to make those around you better? Are the new salespeople welcomed or ostracized? Managers, are you taking turns? When I was at my best and selling the most cars I had Service Advisors, Finance Managers, Sales Managers, and other Salespeople taking turns for me. Imagine what that communicates to a guest? Professionalism – I almost titled this Work Ethic, but I think there is more to it than that. I think that it’s what you do when you don’t have a guest that matters. I also think this is a skill you need to learn. Take the time to become a professional. I have listed three keys to success, but I am sure there are many more. What have I missed?

Have you ever said or been told to “get control of your guest”? You usually hear this when there is a problem with the deal. But think about this for a second. Dictionary.com defines Control as “to exercise restraint or direction over; dominate; command”. How many customers you know who will let you dominate them? In today’s marketplace the customer has so much control. There is an abundant supply of the product. In many cases they know, or at least think they know, what you paid for it. They don’t need it right now. So how are we supposed to get control of our guests? Simple. Get control of yourself. Rather than push the guest where you want them to go, lead them to where you want them to go. If you look around your dealership to the top salespeople I bet you would agree that they don’t have problems controlling their guests. They have mastered the following things: 1. Control your attitude. Often we have decided before we open our mouths whether or not the guest will buy from us. Be careful, because our attitude affects our body language. The customer may decide before you open your mouth not to buy from you. 2. Control your process. You can’t skip steps. They are there for a reason. You will be more efficient and more effective if you know your process and use it every time. 3. Control your product knowledge. Learn what you are selling. I mean, really study it. 4. Control your objections. Everyone has heard the objections are opportunities. If that is the case, you had better be able to handle all of them. You are going to get objections often. The successful salespeople have heard every objection multiple times. These objections help them sell. The quicker you can learn how to handle these effectively the faster you will succeed. This brings me to my last point, 5. Control your time. Most of us have a lot of downtime. We can waste it and talk about fishing of lunch, or we could role-play, do follow-up, study, you get the idea. Control your guests by controlling yourself. I’m sure there are more that I am missing, and I’d love to hear your thoughts.