We have all had one time or another where we had to split a deal. Splitting that deal, however, was often easier said than done. Once we had an agreement on the split deal, we thought all was well. However, that is not always the case, and can cause for quite the controversy, which is not what anyone wants or need! To avoid confrontation, frustration, etc. there are some things to consider when splitting deals! 

Split Deals Should Be Discussed On the Floor. Managers Do Not Always Have to Get Involved. 

This is not to offer that managers should not be aware of the split deal. However, there are times when the sales consultant is not there, or they are with another customer and are not able to work the deal. That said, they should have a go-to sales consultant on the floor. Someone they can count on that will be there to assist them. Sounds easy right?
In most cases it does work, but as mentioned above there are times when the split deal can go south. To avoid the split deals going south, there ought to be guidelines. For example, each sales consultant would select someone to handle their deal if they are not available. And while there will be instances where their back-up is unable to assist them, it will cause less confusion, and the possibility for there to be an issue. 

Commission. Who Gets the Stroke on the Board? 

If you are splitting the deal with another sales consultant then whoever’s customer it is would get the stroke on the board. There have been instances where if sales consultant ‘A’ has already hit their bonus - hitting the highest tier in commission - then they would gift sales consultant ‘B’ a sale to hit their next tier. While it is not an issue for a sales consultant to split a deal - lending a hand - it can be an issue for a dealership. Wherein, the dealer would be paying an additional bonus plus commission for a sales consultant who would otherwise not have made it. However, looking into the issue, if your sales consultants were taken care of then there would be a lot less of this issue taking place. As it happens far more than you would think. 

Have A Signed Agreement. Facts Are Facts. 

There can be a lot of grey area when it comes to splitting deals. There are too many situational circumstances. That said, it is best to have a written policy where each one of the sales consultants would sign it, agreeing to have a floor partner who would assist them if they were not able to take care of the deal. This way everyone is on the same page regarding how to approach the split deal. In doing so, it's less likely you will have issues. 

Bottom Line: your dealer does not have to make this harder than it needs to be. At the end of the day, you have to work with your sales consultants. The best way to do that is being on the same page regarding split deals. This way you avoid surprises and the unknown, which can have a negative impact on morale. The other benefit of allowing your sales consultants to work together in determining the split deal helps build a team — especially given the fact that the dealer world is usually 100% commission. 

How do you approach split deals? It's not too late to join the conversation here! 
 

Week after week we have the same meeting at the dealership. That is the GM sitting down with each department manager to review where they are at, projections, and things that need attention. Anything needing attention is then addressed individually with each department manager, which seems harmless but can cause tension and animosity. More often than not, it just means that the department managers involved need to sit down and work it out. However, that cannot happen in individual meetings. Here are some of the top reasons to avoid the Island approach, and how to have a productive, actionable meeting.

First, What is the Purpose Of the Meeting? Too Often the Manager Never Gets Past the Day to Day Dealings

The meeting is often seen as a hassle or waste of time. Knowing that for every minute they are trapped in the GM’s office the less money they will make at the end of the month. So to avoid the meeting taking up to much time, they quickly go through the same checklist. Once the checklist has cleared, they rush the door and get back into the lane or on the desk; all while the GM thinks all is good. But that is not usually the case. Instead, there are underlying issues that need to be addressed. Ones that are often not discussed with the GM, but are discussed among the employees, which can cause for frustration and tension between the various departments.

If You Have A Group Meeting Stick to the Agenda. Give Everyone A Chance. Do Not Interrupt.

The purpose of having an agenda is to ensure that all topics are covered; along with making sure no one goes down an endless rabbit hole that leads to nothing other than forty minutes of wasted time. That having been said if you do have an agenda make sure everyone turns in ahead of time what they would like to speak about. This gives the GM the time to review the request making sure it is in alignment with the meeting. If the topic is deemed personal and/or a conversation to be held privately, it takes away the chances of the meeting going from good to bad. Another reason to have an agenda - that is planned - is that it gives each manager a chance to voice their concerns, or questions effectively. More often than not, an argument between departments could have been avoided had there been better internal communication. This cannot, however, be accomplished if the manager is not given the time of day. As interrupting or talking over another manager is not only disrespectful, but it can also show that you do not support that manager.

Do Not Use the Meeting to Attack Your Co-Manager. Not All Issues Need to Be Made Public.

It is no secret that there is a lot of competition on the dealer level. It is a dog eat dog world, but there is nothing worse than bringing your co-worker down in front of everyone else. Especially given that while you might not care for them - what they are allegedly doing wrong might not even be wrong. However, as the GM if you allow the employee to bad mouth their co-worker in front of their peers it can in many ways send a signal that the behavior is not only allowed, but encouraged. All of which can and will create an eggshell environment. So, if you do have issues with your co-worker it is best to speak with them first. If you are unable to handle it with them directly, at that point you need to meet with your GM.

Bottom Line: Take a minute to get with each one of your managers, and allow them to contribute to the meeting's agenda. In doing so, each one of your managers will feel as if they are apart of the team. Having group meetings amongst management will also help ensure that there is no miscommunication amongst the various departments.

How do you handle manager meetings? Do you review the same agenda each time?  
 

It can be easy as a GM to sit there and make all of the decisions for the dealership; managing everything from sales, service, marketing, and the hiring of new staff on the dealer level. Meanwhile, you have a management staff of at least five to six managers who should be more than capable of managing their departments. However, they cannot effectively lead or develop their teams if they are not empowered to do so by the GM; this is not to say the GM should not be involved with their management team, either. What this is offering is that there is a big difference from being involved to micromanaging their management style with their team. To avoid losing your sales managers - causing morale issues - here are the top things to consider as a GM. 

How to Effectively Manage Your Sales Managers. Avoid Making Your Sales Managers Dependent on You to Make Decisions. 

If your sales manager does not have the confidence to close a deal or write numbers on a trade, then you have some serious problems. First and foremost, your manager cannot be an effective leader if they have to spend their time coming to you on every deal s/he is working on. Not to mention, your sales team can see through the facade. Once your sales team realizes that you do not trust your sales manager to make a decision it can damage the respect they have for their sales manager. All of which can create tension among your sales staff and managers. To avoid this issue altogether, it is best to clearly outline what they can and cannot do when it comes to writing numbers on a trade or what their limit is when closing a deal. In doing so, not only does this empower your sales manager to make a decision that is beneficial for the dealership, but it also boosts morale on the dealer level. And this is not to say that there will not be some instances in which your sales manager has to come to you to review a deal. However, instead of your sales manager feeling micromanaged they will feel empowered to come you versus it being a regular occurrence. 

Beyond the ability to make decisions regarding a deal or trade-in your sales managers also need autonomy to do stuff for their staff. The best way to manage this is by giving your sales manager a quarterly budget for team building events, lunches, etc. In doing so, your managers will feel empowered to make decisions for their staff. But if they have to come to their GM for every decision including ordering $100 worth of pizza for a Saturday lunch then make no mistake; your sales managers will not make the effort to do any team building events or work towards creating a better morale. 

Making Disparaging Remarks about Your Management Team In-Front of the Sales Team. 

You might have to bite your tongue, but it is never a good idea to make disparaging remarks about your management team in front of the sales consultants. This can and will cause moral damage; not just for your sales manager, but also your sales consultants. Whether you agree or not with your sales manager, it is best to have those conversations in private. In doing so, you can ensure your sales manager is aware of your thoughts, but this can be done without crushing them in front of their staff. If you have made disparaging remarks in front of their staff then - as difficult as it might be - it is best to apologize to the staff. By making the bold move to apologize it can both restore and boost the morale.  

Not Finding Out All of the Facts. Calling Them Into Your Office Based On What One Sales Consultant Said. 

This is a huge, huge no-no! Calling your sales manager into the office - with the disgruntled sales consultant - without having first taken the time to speak with your sales manager will cause for multiple issues. First and foremost, your sales manager will feel attacked, which can and will in most cases put them into defensive mode. To which the sales consultant can up-play, which will quickly turn into a heated argument. Instead of taking this approach when it comes to an issue voiced with a sales consultant you should do the following: 

First:  ask the sales consultant have they spoken with their sales manager. If they say “no” then you need to redirect them back to their sales manager. Allowing your sales consultant to bad mouth their sales manager without having spoken with them can set a bad example. If the employee says that they have indeed spoken with their sales manager, but nothing has evolved then ask your sales consultant when they spoke with their manager. In doing so, you are merely getting facts to which you can review with your sales manager. 

Second: take a minute to get with your sales manager in private. First, take a minute, and ask how their day is going. As jumping right into the issue can be viewed as an attack. When you do inquire about the employee issue first ask “did the sales consultant get with you regarding this issue.” If the sales manager says “yes” then inquire what happened. However, if the sales manager says “no” then you need to get the facts from the sales manager and let him know he needs to speak with the employee. But avoid calling the sales consultant into the office while speaking with the manager. It is best for the sales manager and employee to work out the issue together. If they are unable to resolve the issue then at that point you can get involved to work it out. 

Third: avoid inquiring about the issue with other sales managers. It might be easy after a long day to inquire about the issue with another sales manager, which can be misconstrued and be seen as your pitting one manager against the other. This can be very damaging and will cause morale issues. 

Bottom Line: By following the steps above you are showing support for your manager. And while your manager might be in the wrong it is best that they work out the issue with the employee. In doing so, both the sales consultant and sales manager can build mutual respect for one another, which can have a positive impact on morale! 

How Do You Empower Your Sales Managers to Both Lead and Develop Their Staff? 

The idea of implementing a new CRM on the dealer level can seem intimidating, and rightfully so! There is an incredible amount of work involved when implementing a CRM everything from user experience to whether or not your DMS works with the CRM. Not to mention, there are endless other tasks to consider; workflows, marketing, employee profiles, DMS connection, lead integrations, and lastly vendor integrations. The list goes on, which means it can make one's head spin. To avoid confusion, chaos, and disappointment, there are a few key guidelines to consider when making a CRM switch!

Why are you wanting to switch CRM’s? Not Making A Move Because it Seems to Complicated or There is too Much Involved is Not the Right Answer.

Knowing all of what is involved in switching CRM’s it is essential first to ask yourself “why am I switching CRM’s? Is it reporting, workflow management, campaigns, customizations, etc.? As you are asking yourself those questions, it is also important to review the current CRM with your account manager. It is no secret that the average dealer uses less than thirty percent of its CRM’s features. That said, before making a switch take the time to sit down with your current account manager and review your concerns or anything you would like to do within the CRM. In doing so, you could potentially still use the CRM versus spending thousands of dollars to switch CRM’s and take the risk that the new CRM might not be everything that you had hoped for when making a move!

Have a Project Manager! Avoid Having too Many People Managing the Project Which Can Lead to Confusion!

While it might sound like a great idea to have everyone involved in implementing the CRM, it might not be best. Having too many people managing the CRM implementation can easily cause confusion, which can lead to delays as there could be a breakdown in communication between the CRM and the dealership. To avoid this potential issue it is best to have a primary point of contact. The point of contact on the dealer level will be sure to update everyone as to the status of the CRM. As for ensuring everyone has a chance to share or discuss their ideas regarding the implementation, you can easily schedule weekly meetings to discuss updates, concerns or suggestions. In doing so, it helps to remove the chances of there being a breakdown in communication which can lead to unnecessary delays.

Vendor Integration. Check and Verify If Your Current Vendors Can Integrate With the CRM

Integrating vendors in the CRM is not an easy task; it can be easy to overlook one or two integrations such as third-party leads or the trade-in tool. Where in many cases, the vendor's tools might not always work 100% with the new CRM. Making it that much harder to manage the data with each tool as it is housed with each vendor individually. That said, before deciding to switch CRM's take the time to make sure that all of your vendors will work with the new CRM. It is also important to list out each one of the vendors you use, and what the current status is of its integration. This way you can keep track of the vendor making sure that nothing is overlooked. The other thing you ought to consider when reviewing the vendor integration is whether or not you need all of the vendors. If you have one or more services that have the same core functions you might not need all of the services. In reviewing the vendors, you can easily save hundreds if not thousands of dollars a month!


End Goal. Have a Clear Vision with Realistic Expectations. Launching the CRM at the Time of Their Visit Does Not Always Work. Have A Soft Launch Ahead of Time!

In a perfect world, we would have launched the CRM yesterday. But the truth is there is a lot involved when it comes to implementing a new CRM. So before you implement a new CRM take the time to set a realistic timeline. That is reviewing the time it will take to implement the CRM, and how long it will take to ensure that all of the vendors are integrated correctly. As there is nothing worse than using a CRM that does not work the way it was intended. Not to mention, if the CRM is not set up correctly then it can take that much more work to ensure that all of the users use the CRM.

One of the best ways to avoid this issue is by working with the CRM company to soft launch the CRM with specific people. In doing so, your BDC Manager and Sales Managers can take the time to review the CRM that is everything from how to add customers, customer profiles, workflows, templates, marketing, click to call (for those with that feature), quoting, etc. If your BDC Manager and Sales Manager are learning the CRM at the same time as your sales consultants, it can create a lot of frustration and confusion as the sales consultants will be looking to them for assistance when using the CRM.

Bottom Line: a CRM is as only good as the data entered into it! However, for those that do have good data in the CRM, it can be incredibly useful. That is organizing the data in a way that translates and makes sense for the end user. Not to mention, there are CRM’s on today's market that have multiple tools built into their platform whether that is chat, phone call tracking, etc. Having all of the features under one rooftop can not only save money, but make the data more useful knowing that when your managers have to use multiple platforms to review and analyze data the less likely they are going to use the tool. Lastly, before making a switch in CRM’s take the time to review your current platform. Ask yourself the tough questions: does the CRM have the reporting, vendor integration, and technology needed to sell more cars? If you do have these questions for your current CRM take the time to speak with your account manager; most dealers do not use more than 30% of their CRM’s features! By taking the time to review your current CRM’s features it can save you thousands of dollars and the headache of switching CRM’s however if your CRM is not able to do the things you need then do not wait. Make the move as a new more powerful CRM can and will make a big difference!

How often do you have the CRM conversation? Have you taken the time to speak and work with your CRM account manager?

 

It is not uncommon to receive over sixty plus notifications per day on your cell phone. As one can imagine, it can become tedious to filter through all of the clutter to find what you need or what is essential. The same can be said for all of the notifications your sales managers receive via email, text, and through the CRM. Not to mention alerts from any one of the other vendors you are using. For those who have a trade-in appraisal platform, you know first hand how many alerts you can receive at one time! That said, instead of forcing your managers to get alerts from every option (text, email, etc.) let them choose which method is best for them. In doing so, it allows your manager to focus on what is most important, which is working with the customer!

How to Manage Alerts On the Dealer Level. Less is More. No Need to Clutter their Inbox.

I will never forget a conversation I had with a GM who forced his sales managers to receive vendor notifications, email notifications, CRM notifications, and text notifications for the same alert! This understandably caused confusion given that at any time during the day the sales manager would receive as many as twenty to thirty emails and texts at the same time. As one might imagine, this became overwhelming for the managers to try and manage all of these alerts. Instead of forcing them to receive the same notification on multiple devices, let them choose which method is best for them. Besides, you will review the CRM to see whether or not the customer sold and or if they communicated with the customer. So while it might seem like a good idea to push the alerts, less is more!

The CRM Houses the Leads, no? So why do we need an alert for every lead via text message, email, &CRM?

If you have a BDC Manager, there is no need for the sales manager to receive a text message, CRM alert, and email for the lead. Now, if you are sitting thinking well my BDC Manager is not going to understand the importance of that lead or that the customer is ready to buy - then perhaps you do not have the right person managing the BDC, which is a whole other issue. Instead of your sales managers focusing on each lead itself they should be focusing on how many appointments they have booked for the day, week and weekend. By managing the end result and working with their sales consultants, they could save as much as an hour a day by focusing on what is essential instead of running back to the BDC Manager every few minutes to see if they have answered the lead!

Email Lead Alerts? Is this Necessary?

I am not sure about the rest of you, but receiving the lead via email became a nuisance. It was a lot of extra emails to manage, and while there were a few times that the leads were delayed and or were not delivered to the CRM, I would just log into the website tool and review if there were leads that had not yet been pushed over. However, if I had to go through every email it would have taken twice the amount of time. Whereas, I would quickly look at the time stamp in the website tool and anything that did not come over after a specific amount of time I would make sure it got pushed into the CRM.

Bottom Line: Multiple alerts for the same thing sounds harmless, but in all reality, it can cause more harm than good. Instead of having your managers focusing on how to manage all of their alerts, it is best for them to focus on what is important, selling cars! For those of you who have a BDC Manager, make sure work with them outlining when it is that you expect a report on that day's activity; whether that is at the end of the day or the following morning. By having a plan of action, it eliminates the need for the hundreds of additional alerts on a daily basis, which will undoubtedly leave your manager's inbox cluttered.

How do you manage alerts? Do you make your sales managers receive the same alert on multiple devices?

The Best Idea contest is one of my favorite events at DSES. It is always refreshing to see new and innovative ideas presented by those who also work on the dealer level.  One of the ideas presented this year - albeit while it was not necessarily new - was the auditing of your dealers SEM company. The idea that your dealer might not be getting its monies worth out the service they are using! And while it might seem to be common sense on the surface the fact is very few dealers ever question and or hold their vendors accountable.

Given that the profit margins are shrinking it is essential for us to start paying attention to what our vendors are offering us. And if our vendors are not bringing results to the table we have to realize that the issue is not always because we are not “spending enough.” Whereas, the vendor has not delivered on their end which is causing for there to be a decline in traffic. That said, here are some of the top things to consider when reviewing your reporting:

Monthly Results: Changes are Hard to Make on A Mid-Month Phone Call.

It is also important to review the monthly results, and in doing so you can hold the vendor accountable. More often than not, dealers will not call the vendor to discuss the results until mid-month, which does not provide the dealer enough time to make changes and or see any results in the changes made. The other issue with this approach is that because there is not a solid plan in place it makes it that much harder to make a well thought out decision; one that will bring great results on the dealer level.

Vendor Management: Communication is a two-way street.

As mentioned above, it is hard to see results if you are making changes mid-month on spend. That said, communication is a two-way street, and while your vendor is responsible for delivering results you have to communicate what it is you are asking for! A vendor cannot make changes if you do not communicate with them. For example, if your vendor is not located in the same market as you are then their plans for a local dealership might not work out for you! One of the top questions that dealers ask is “what other (OEM) have you done marketing for? And what campaigns work best?” - on the surface, it sounds like a great question, right? But it is not the best question! Each and every market is different, and to base your entire months spend on non-local comparison does not make the most sense. Instead, you have to analyze your own market and understand what the areas of opportunities are!

For example, if there is one OEM vehicle that you are not selling well in your market, but your competitor is then it is important to review how you are marketing that vehicle. Looking to see what impression share you have not to mention how many inquiries or VDP clicks you are getting. If you are not getting any traffic on the unit than it could be pricing, marketing, etc. But you will not know this if you are asking your SEM company to do what their local OEM did.

Bottom Line: it is important to hold your vendor accountable. There is nothing worse than spending money on marketing efforts to not see the results. However, in order to get the best results for your dealership, it is best to have open communication with your vendor. Taking it one step further, it is also a good idea to have a meeting with your vendor monthly to review the current results and see what if anything you need to do to realign your efforts. Lastly, it is important to review contracts to understand what you are getting for what you have paid.  

How Do You Manage Your Vendor Relationships? Do You Plan Ahead for Marketing?

One of the things I like most about the DSES conference is that it ‘recharges’ my batteries after spending three jam-packed days full of actionable takeaways! However, it is important to note that while it is great to re-charge your batteries by attending conferences, it is just as important to take the time during the year to implement the new ideas. One of the most significant issues we face on the dealer level is actually following through with the newly developed ideas.

Think about it, we go to the conference and have every intention of following through with the new ideas. Everything from BDC Training, Marketing, Social Media, etc. to then go back to the dealership and not taking the time to follow through with the new ideas. That said, here are some of the things to consider when making changes within your dealership remembering that change takes time!

You Cannot Change Anything By Simply Thinking About It! Where to Start? Less is More. Do Not Overwhelm Yourself With too Many Ideas.

As mentioned above making a change on the dealer level takes time, energy, and most importantly action! New ideas on how to approach your BDC can be both exciting and inspiring, but the harsh reality for many of us is that none of the ideas come to fruition. To make the changes happen, we have to take the time out of our busy schedules and realize that we are not alone in wanting to make a difference.

One of the hardest things to deal with when wanting to make a change is prioritizing which changes need to happen first. That alone can make the whole process overwhelming, and cause for you to shut down with your eyes glazed over. To avoid this approach, it is best to jot down all of the ideas you have and review how each idea affects the dealership. Understanding that any and all changes can affect the dealership. In doing so, it will make approaching the transition easier. And as mentioned above, there are others in the dealership that you might be able to work with that can make it a little less daunting to make a move forward with a new idea. I know first hand what it is like presenting an idea where everyone is excited, but no one was willing to lend a hand. It is overwhelming.

Here is an easy but effective way to manage a new idea:

Project: Outline the details of the project and what the positive impacts are - don’t be afraid to show examples of the project.

Employee Involvement: Outline the managers who are going to be involved in the project. Keeping in mind that you can sometimes use the BDC Agents or Sales Consultants to assist you! Especially if the project involves social media.

Timeline: Review the scope of the project and all of what is involved. Set a realistic expectation as to when the project will be completed. Knowing that while we want the immediate gratification for our efforts exhibited that change takes time. This can be an issue on the dealer level though when results are often expected immediately.

Task Assignment: More often than not if those working with you on the project do not have clear responsibilities than it might lead to confusion as to who is handling what on the project. This is a recipe for disaster, and to avoid this issue, it is best if each person who is working on the project has a clear understanding of what their respective role is! The less confusion, the better.

Lastly, but most importantly it is best to have a review of the project - i.e., what is working, what needs to be adjusted or changed. Perhaps the responsibilities need to be shifted. Whatever the case may be it is imperative that you address any issues immediately; otherwise all of your hard work and efforts might fall by the wayside, which can be very frustrating!

Bottom Line: Change is inevitable, and the easier we make it for us to adapt to change by being proactive versus reactive the better the results will be for the dealership. As working in a reactive setting does not afford the opportunity to grow or develop. Those who want to better themselves will not last in an environment in which they feel they are stagnant. And this is not to say that all ideas are going to work or be developed, but it is offering that it is important to encourage change.

How do you handle new ideas suggestions? What is one change that has had a positive impact on the dealership?

Designing a pay plan focused primarily on commission on the dealer level is not uncommon; in fact, the entire premise of the pay plan is “the more appointments you book that show and sell the more you will make,” which can be true depending on the pay plan. However, if the pay plan is just focused on commission, it can quickly become a group of individuals working separately. And because there is not a team effort when it comes to managing customers, there are often gaping holes in your follow-up. Just check one of your BDC Agents work-flows at random, and you will find several uncompleted tasks.

To avoid the risk of losing sales due to a lack of team effort, there are other components to consider when approaching the pay plan:

Hourly Rate vs. Salary?

It is quite common for your BDC Agent to be an hourly employee, which can be quite costly. A prime of example of this is overtime. Take a look at their hours; are they clocking out for lunch? If not that can add as much as five hours per week in unintended over-time, which depending on your state is time and a half for their pay. You take one to two BDC Agents doing that, and now you are paying ten hours a week, and forty hours a month! If you salaried your BDC Agent, you would potentially save thousands of dollars in overtime. However, when it comes to determining their salaried rate, it is best to review the going rate in your area. So while it might sound harsh - business is business, and in many cases, the overtime that is worked was highly unproductive.

Only Paid if the Appointment is Sold?

There are two sides to this scenario, and both are worth addressing; one of biggest reasons dealers do not pay based on whether the appointment sold or not is the age-old argument of “they do not have control on whether or not the customer sells,” which is true. The primary purpose of the BDC Agent is to book an appointment getting the customer into the dealership. Now that said, the reason why dealers have moved towards the plan that only pays if the customer sells is due to the issue of “the BDC agents do not bring in quality appointments. They will try and qualify the customer more if they know they only get paid if the appointment sells.”

Two things, if your BDC Agent is bringing in a customer with a recent repossession or if the customer wants a $350 payment on a $45k vehicle with zero money down - then yes, that is not best practice. However, your BDC Agents have far more significant issues if that is what they are doing. The second issue with that pay plan is the fact that if the BDC Agent is being paid only if the unit sells then they might be too involved in the deal. For example, instead of the BDC Agent moving onto to the next phone call, email or text they are steadily focused and involved with the desking manager and sales consultant handling the deal. That distraction can cause for ill productivity; as much as a half an hour can be lost as their focus has shifted.  This is not to say that your team does not need to have a commission-based plan, but this does offer that there are perhaps better ways to pay your BDC Agents. One of the ways of doing so is by paying if the appointment were to show, and then pay a volume bonus. If they hit “x” amount of shown appointments, they get a tiered bonus.

Bottom Line: your hourly rate could be costing you thousands of dollars in unintended overtime. It is best that you take some time - as you are planning for 2019 - and review the amount of overtime year over the year looking to see if your appointments increased. Chances are it is minimal, and if it is minimal than you know, it has costed your dealer money decreasing an already thinning bottom line. The other thing you ought to consider too is reviewing the cost of the BDC. Wherein, once you look at the payout of their commission, plus the salaried rate (or hourly), less their “sold” units, you can look at their actual cost and what their ROI is for the dealership.

How do you pay your BDC? Do you have an hourly rate or salary? For those with a salaried rate have you noticed any changes in their performance?

It is easy to look at a few reports and come to a conclusion that your sales managers are just not cutting it. That is everything from their closing rate, sold rate, front-end gross, to their overall performance on hitting the OEM objective for the month. However, there is much more to what makes a sales manager successful than of what meets the eye; in many cases, the GM can prevent his or her sales managers from doing their jobs. Noting that within the last few years the role of the sales manager has arguably changed. That said, here are some of the top reasons your sales managers are not working out and how to address the evolving position. 

What Is the Sales Manager Responsible for on the Dealer Level? Are We Really a Team or is it About Which Manager Adds More Profit to the Bottom Line? 

One of the most significant sources of dissension on the dealer level derives from their individual performance. Wherein, the GM might note that sales manager “A” desked more deals than sales manager “B,” but sales manager “B” headed up training and onboarding; meanwhile, the GM accused that sales manager “C” must not be doing anything! The idea that he is glued to his sales tower. When in all reality, sales manager “C” is responsible for OEM Reporting, Payroll, and purchasing inventory. Therefore, even though the sales manager “A” had more desked deals s/he did not assist with any other managerial duties. 

The above scenario is more common than you would think which in many cases causes many controversies. Wherein, the GM will not take the time to note that each manager is playing an integral role in ensuring the dealership's success, and instead of taking the time to review each of their positions they expect both “B” & “C” to desk more deals. With the idea that it will increase sales. That is not the case, however, as the sales start to decrease because you have now lessened the training, RDR’s become an issue with incentives that were not applied for, payroll becomes an issue, and the inventory is not managed. All of which causes for a vicious cycle of burn-and-turn. Where the GM inevitably burns and turns his management. 

The way a dealer approaches management cannot remain the same narrow-minded perspective. Instead, the dealer has to think of the bigger picture; that is business development, which is not limited to having a BDC staff that makes phone calls and sets appointments. Instead, the dealership needs to work with their sales managers regarding what business development means on the dealer level. Everything from phone calls, manifest lists, equity customers and CRM management to name a few. But this cannot happen if the GM does not afford his sales managers the opportunity to approach those topics. And while the GM might offer “I never said they could not do those things,” it is also known that their pay plans are solely focused on units sold, which makes sense. However, to increase the number of sold units and increase the Gross Per Copy, there has to be both business development and training! 

The GM has to be cognizant that each sales manager plays an integral role in the dealers overall success. And managing them off of “one point,” without managing “how” they both approach and execute the sales is a costly mistake which causes for turn over and lost profits. The bottom line is that no longer can the sales manager role be limited and defined by a few reports. A Sales Manager has to understand business development, and the GM has to support that role. If not, it will be that much harder to both maintain 

Before you can cast blame on the sales manager for their performance, it is essential to understand what they are responsible for when it comes to the dealership's success. Each store you visit, however, have different expectations, which makes it that much harder to draw a fine line in the sand mapping out their respective duties. Not to mention, because sales managers have different responsibilities it makes it harder to hold each one accountable. To avoid this approach, it is best for each manager to have their own set of responsibilities allowing each manager to do their job. 

How do you measure your sales managers success? 

In a perfect world on the dealer level, each customer that visits the dealership would be logged into the CRM. However, we know that this is not the case,  and there are certain instances in which the managers and sales consultants deliberately do not log the customer into the showroom. As for why they choose not to log the customer in the showroom could be for a myriad of reasons. Everything to their excuse of “they were just looking” - “bad credit” - “wanted to pay $9,750 for a $12,000 car” to name a few. That said, here are some of the top things to consider when keeping tracking of your dealerships daily showroom log in the CRM.

Not Every Customer is Logged Into the Showroom. Where is the Sales Manager? The Customer is Not Just Visiting the Dealership for the Sake of it.

It is common practice on the dealer level to have the manager “TO” (turn over) the customer before they leave the store; in many cases, it is mandatory for the manager to do so. However, we all know that not all managers will turn over the customer or in some cases the dealerships do not log the customer in the CRM at all. This is a problem. A problem that has to be looked into. Otherwise, you are letting what could be a sale walk right out the door. This is especially true for those sales consultants who are new to the industry.

For example, a new sales consultant speaking with their sales manager might say:

Sales Consultant:  “The customer said they were just looking, and then left”

Sales Manager:  “Did you get their contact information?”

Sales Consultant:  “No, they did not want to provide that.”

Sales Manager:  “Okay, don’t add them to the CRM”

If you think that does not happen, think again. It happens far more than you would want to admit. When is the last time you noticed a sales consultant not logging a customer into the CRM? What if anything did you do about it? This issue can be avoided for the most part if there is a strong manager presence on the floor along with proper, quality training. That is the sales consultant being comfortable with gathering the information needed to assist the customer. Knowing that the better their needs analysis is, the better chance they have of closing the sale! However, that cannot happen if the customer leaves the dealership, and we do not have their contact information.

If Your Managers Allow this and Participate the More Important Question is WHY?

I once worked with a sales manager who was always so proud of his closing rates on the desklog. But no sooner than he’d spit out his numbers, he admitted he did not log in the two customers from yesterday. As for why he did not log them into the system the excuses were (as mentioned above) “they were just looking. They came in thirty minutes before close.” - “they have no credit and cannot purchase” - this could very well be the case. But regardless of why it is they are visiting there is no excuse not to log them into the CRM. This scenario is like the BDC Manager saying “well we cannot get ahold of John Doe. So we are not going to count that against our closing rate,” which means the closing rate magically increased by 2-3% - it does not add up, no? This all can be avoided however if the culture shifts. That is understanding that not all customers will purchase a vehicle. In fact, dealers usually close only half of the customers they work with, which could be even lower if they logged all of their customers in the CRM!

This is also  a multifaceted issue. Wherein, sure your sales consultant can easily add both a first and last name into the CRM. But if they fail to get their phone number or email the customer profile is useless. The first step is your sales manager spending time with the sales consultant inquiring into why they did not gather the information? The more practice your sales consultant has in gathering the information, the stronger their sales will be! The second thing to review is your policy with your management team. Making sure that your managers are not playing games with the numbers by not logging them into the CRM. Lastly, if you are paying a bonus for the managers on their closing rate percentage - this too could cause for them to “forget” to log that customer into the CRM. Where it completely takes away the purpose of the competition in the first place.

Bottom Line: Logging your customers into the CRM is crucial. The dealer has spent thousands of dollars to inquire the customer. And while you will not sell every customer that walks through the door, you will have enough data to review possible break-points. Is it their demo? Is it the way they present numbers? Is it their sale process? to name a few examples. By being more involved and making sure the customer is loaded into the CRM you will see an increase in sales.

What policy or training do you have in place to make sure this does not occur? Is this an issue you face on the dealer level?