Beltway Companies
Top Reasons Your Up-Selling Isn't Working
With Fixed-Op’s carrying the weight financially for dealers it is essential that your service advisors upsell product in the service lane. That is everything from additional services to selling accessories such as windshield wipers, and cabin filters. However, this does not seem to be the case where many service advisors have become order takers versus taking the time to both understand the customer's needs and suggest additional services; knowing that our customers are not going to ask to purchase other services. That said, here are the top reasons your upselling is not effective and how to change your tactics!
Appointments With Pre-Selected Services. Customers can easily go online and schedule their appointment for a specific service.
Appointments can assist us on the dealer level when it comes to being able to plan accordingly. That is ensuring that we have enough advisors to handle the traffic. As well as taking the time to make sure that your advisors are not overbooked, which can cause significant delays; meaning the oil change that was supposed to be 45 minutes turns into a 2-hour ordeal, which can affect the customer's experience. Not to mention, an upset customer is less likely to agree to additional services. That and providing a rental to every customer - especially for a customer who is only getting an oil change - is not always cost effective. So how do we handle this issue?
A busy shop can be a great thing! However, as mentioned above, if the appointments are not orchestrated it can become a disaster. To avoid this issue, and make sure your team is upselling your customer it is best to call the appointment beforehand. In doing so, your advisor can build rapport (especially for repeat customers), and upsell before their arrival. For example, if the customer has serviced with you previously, you can quickly look up their history; reviewing their profile to see if they have declined services in the past. Looking to see what their objections were, which will allow you to serve the customer better. This way upon their arrival they are on the same page regarding what to expect. Moreover, if there were to be changes or additional items needed they might be more obliged to agree and have the work performed. However, none of this can happen if we do not take the time to call the customer before their arrival.
Coupons Do Not Always Work. Offer Services that Compliment their Needs.
There are those who tout a coupons success, but in the automotive industry, coupons do not always work, and dealers do not always have to drop the price on a service to get traffic. If you were to review oil change coupons - reading the fine print - many of the retailers who do oil changes can be more expensive. Not to mention, they rarely have OEM certified technicians. Another issue with many of today's coupons is that it pushes the customer into the service on the coupon. Wherein, if the customer were to use the coupon for the said service that is all that is on their mind and of course, the service is at a discounted rate. So if they were to be then offered a service at full retail, they are much less likely to want the additional add-ons. Think about it for a moment, you go into a store with a 20% off coupon for “one item,” and the cashier offers you an “add-on,” but for full retail - don’t you pass it up? The same is said for the customer standing in the service lane. That said, it is more important for the dealer to have a strong online presence and offer their services and amenities as opposed to merely providing a coupon.
What if the Customer Says No? How to Overcome the Objection.
The customer saying “no” is the most common objection and in many cases, the dealer will follow-up with an email to the customer with a coupon for their declined service. However, before it gets to this step, it is best to figure out and address why the customer said no in the first place. For example, if one of the declined services was for tires, the customer could easily think that the place down the street is the way to go, not even thinking about the fact that your dealer sells tires. That said, you can offer the customer a price match guarantee. Not to mention, we know that today's buyer is all about time. So if we can save them time and assist them, it is a win-win situation. However, this cannot happen if we do not ask.
The other thing to note with regards to declined services is that if we keep sending the same message with the same coupons, then we cannot expect anything to change. Instead, we have to take a step back and look to see if the declined service is typical - a trend at the dealer in which case more training is needed - or if it is a one-off situation. In either case, it is best to build a rapport with the customer understanding his/her needs so you can better assist the customer. Knowing that people buy from people, and this cannot happen if we take “no” for an answer without having taken the time to build the much-needed rapport with the customer.
Bottom Line: The customer is not always going to agree to your recommendation, but if you can offer them a sensible solution then the customer will be more obliged to accept. Think about this for a moment; if the customer comes into the dealership for their oil change and in the back of their mind knows they need to stop at the local store to pick up windshield wipers because they believe the dealer is more expensive, then they will not even ask you for them. So if you were to offer the customer that their windshield wipers need to be replaced, and you have them as low as “x” then you could be saving them time. The customer will undoubtedly be appreciative that you have saved them time. Something that they were not expecting. So don’t be afraid to ask.
Do you start the upsell process before your customer arrives? If so, have you found success with it?
Beltway Companies
Work-flows Do Not Always Work. Top Things to Consider When Answering Leads.
There is not a lot of flexibility when it comes to customizing a work-flow in many of today’s CRM’s. Where in many cases the standard work-flow is both a phone call and email, and while both are very important - so is texting. In fact, texting could arguably be more important - in some cases - than the standard dealer email that does not always answer the customer's questions. That said, here are the top things to consider when implementing a work-flow and the shortcomings we face on the dealer level.
If the Customer Does Not Provide a Phone Number the CRM Still Says to Make a Phone Call.
This is one of the most common issues with the CRM’s in today’s market. Wherein, even though the customer does not provide a phone number the work-flow still offers that the BDC Agent or Sales Consultant needs to make a phone call. This also then means that in the CRM’s reporting it will offer that the BDC Agent or Sales Consultant has not completed their workflow tasks. And if your pay plan for the BDC Agent is tied to the completion of their tasks it makes it that much more difficult to manage. As the BDC Manager will have to manually delete the overdue tasks and or change them to another type.
Where is Texting? Many of today's CRM Work-flows do not include texting as a part of the work-flow.
One of the biggest pet peeves with a lot of today’s CRM’s is that they do not include texting as a part of the work-flow. Yet as we know, texting the customer is becoming more and more relevant as it is a very effective means of communicating with our customers. That said it is important for the CRM providers to ensure it becomes apart of the work-flow. Otherwise (as mentioned above) if your BDC Agent’s pay plan is tied to the completion of their tasks their focus will be misplaced. As they are making unnecessary calls and emails.
A Rigid Work-Flow. Two Phone Calls on the First Day. Emails and More!
There is such a thing as over communicating with the customer. This is especially true if you are calling the customer two to three times, emailing and texting them. All without receiving a response, unless that is of course to unsubscribe or they have opted out of texting. And make no mistake, this is not to offer that we should not try to get in touch with the customer a few times on the first day. What it does offer, though is that we need to make sure the content we are offering makes sense. If the customer is not responding to your phone calls and or replying to the emails you sent then it is best to review the content. It could be something as simple as your subject line, or that the email went to their spam folder. Either way, before completing that additonal email task is best to look at your overall open and response rate. This will help you get in front of more customers!
Bottom Line: Instead of worrying about the completion of a task for the sake of it make sure the content is relevant. Knowing that not all leads are the same and or require the same level of contact. In fact, in many cases, the customer might add in their initial reply email what times work best for them for you to call. So if you ignore this - to complete a task - then you could potentially run the risk of losing this customer. In doing so, you will see an increase in the overall response rate, which will translate into more sales.
How Do You Handle Your Store’s Work-Flow? Do You Find That it Limits your BDC Agents Productivity? Do You Tie Your BDC Agents Pay Plan to their Work-Flow Task Completion Rate?
2 Comments
Automotive Group
I’ve been thinking a lot lately about BDC productivity I’m glad to see that you’re thinking about it too
Beltway Companies
@Chris, for so long I was guilty of pushing tasks, which is great, but I am finding better results with breaking down follow-up by lead source type. That is Dealer Website leads, third party, etc. And from breaking them down into "buckets," and forgoing the typical workflow we are seeing better results. That and I have always been a fan of quality vs. quantity. I am hoping this is discussed at DSES this year in one of the break outs.
Beltway Companies
Were Your Labor Day Sales A Snooze?
There is always hype in retail when it comes to the holidays. That is our mindset as an industry - the idea that our customers are eager, ready to shop for that fantastic deal. And while several studies suggest the holiday weekend can be quite successful, it is essential to keep in mind that your dealer sets realistic goals for a holiday. To do so, it is best to follow the following guidelines!
What did you do last year? Are sales generally up year over year?
One of the things we need to do more - on the dealer level - is to look at year over year reporting. Looking to see what the sales trends are making sure that the reporting you are reviewing is accurate. One of the best ways to get accurate reporting is to use your OEM’s online sales data. Using the sold data with your OEM will ensure it was an actualized deal. As for the pre-owned sales, you can easily review your DMS system, and pull your sold data.
The purpose of reviewing your year over year sales is to set a realistic sales goal. Wherein, if you want to increase your sales by ten or so percent (which sounds excellent), then you need to plan accordingly. Namely, perhaps there is one brand model that you are lacking in sales. Those units might also be aged. That said, you can look and see if there are any additional OEM programs to help absorb the discount. If there are programs available, then it’s the perfect opportunity to offload that inventory.
For you to sell that inventory, however, it’s more than just setting the price. You will also need to make sure you have the right marketing in place to support the campaign. One of the most effective means of campaigning your inventory is to do so via social media. As the cost to run the campaign is still relatively low. You will also want to put together an email blast. One that is directly marketed to the customer. Such as a customer who has not yet otherwise purchased, but expressed interest in the vehicle. That very list, though, should be different than of the email list of customers who expressed interest but did not respond back to the dealership. In doing so, you will have a highly organized call list.
Holiday Hours. How Late to Stay Open?
Every dealer has their own standards as to what the hours are for the holidays. The best way to approach this scenario is to - as mentioned above - review your year over year sales. If you have low sales numbers and did not spend additional money to “market” holiday offers then you can expect for your sales to be light. If that’s the case, it is also best to not have a full staff at the dealership. As fully staffing your dealer - on a slow day - for a holiday can actually wind up costing the dealership money! This is especially true for those who are hourly and (depending on the state) require time and a half.
Bottom Line: this is not to say that your dealer should be closed for the holiday. But what this is offering is that if you are choosing to be open, there are best practices to follow to ensure that your dealer will have a successful sales day. That is making sure to review reporting, strategize an effective marketing campaign, and make sure that you are not overstaffing your dealership. The last thing you ought to check - and make sure is accurate - is your stores hours! You would be surprised to see how many dealers forego updating their hours - leaving their customers unsure as to whether or not your open.
Is Labor Day a successful sales holiday for you? Do you also keep service open?
No Comments
Beltway Companies
Top Reasons You Need A Second Chance Finance Program
A solid second chance finance program on the dealer level can be quite profitable. But in many cases, the program falls apart in which case the dealer shies away from starting the program again or at all. Having gone great lengths initially to get the program up and running. That is purchasing the right inventory, hiring a finance manager who understands second chance finance, to then all of the branding and marketing that is involved. That said, why do these programs fail? And if they do fail, why give up? Yes the dealer makes profit, but this program does also assist the customer who otherwise would not be able to purchase a vehicle and or they are having to purchase from a buy here pay here which - as we know - does not always report to the credit beaurus in which case it does not assist with their credit. That said, here are to the top things to consider when wanting to run a second chance finance program.
It’s All About the Processes. You Have to Have the Right People in Place.
As mentioned above a successful program means having the right people in place to ensure that the program is running smoothly. One of the best ways to approach the hiring of your second chance finance program is to first understand what the demand is at your dealership. Wherein, you might not have to hire additional staff to handle the traffic. If you do not need additonal staff, make sure that the sales consultants you have selected understand the program. Knowing what steps they have to complete when handling a second chance finance customer. Offering that you expect the same level of customer service to be offered. However, the way you offer the customer service has to be in alignment with the customer and dealership. By providing the right level of customer service can make for a great experience. One that your customer will remember!
Have the Right Inventory. Explain to the Customer How the Process Works.
We have most likely been in a situation where your customer calls in - with credit issues - wanting the brand new model that has all of the options. If we could offer them the vehicle of their dreams, we would do so, no? But this is not always the case. As we know, the banks usually have a loan to value ratio limits. As well as finance limits. In so far as the lender might only finance 85% or so of the loan. That having been said, there is a best practice when it comes to approaching the customer with this information. Namely, we do not want to just offer “that will not work,” and instead offer “Mr. Customer, I can certainly understand. At this time, based on your credit history, the lenders will offer (insert options), and in time perhaps you could transition into your (vehicle).” This is not to say it will always work, but in most cases, the customer will see that you are trying to work with them.
Regarding the inventory goes it is best that your purchasing manager buys inventory that is approachable for the customer you are seeking. Wherein, if your purchasing manager is purchasing inventory in a steep price range 35k+, then it might be a bit difficult to make that vehicle work. The other thing to consider to depending on your lender's requirements is both the age and mileage of the unit. The lender will sometimes have restrictions. As for the customer, it is best to make sure you clearly state what the next steps are online. Offering how the customer can expect to navigate through the car buying process. That is everything from completing the credit application to working with you to select the right vehicle that meets their needs. In doing so, it will offer for a very smooth buying experience!
Bottom Line: A credit acceptance program can be very lucrative. However, for it to work processes have to be in place on the dealer level to ensure that everything runs smoothly. One of the most important factors is having the right inventory. By having the right inventory in place - along with the staff to work with your customers - you will have a much better chance of everything working. Lastly, make sure that you have a clear outline as to what your customer can expect when purchasing a vehicle with you!
Do You Have a Second Chance Finance Program? Have you had success with your program?
2 Comments
Self
You hit the nail on the head with having the right people in place. Working with blemished credit and maintaining profitability takes a specialized skill set.
Beltway Companies
Thanks, Amanda! I have also noticed that after we have sold that customer a vehicle they often then send referral's!
Beltway Companies
Top Reasons Your HR is Affecting Your Leadership Development.
Leadership development is not limited to your sales managers on the dealer level. Your HR department can have a profound impact on your entire organization as they, in theory, are assisting your owner in defining the vision for your company. And in doing so, they are to facilitate an environment in which you are able to perform as a leader. But this is not always the case as the HR department can actually cause damage to the organization.
Here are the top ways your HR department can affect your Dealer’s Leadership.
HR Is Not on the Same Page With Your Sales Managers. They Are Playing Sides With Upper Management.
Albeit, it is not easy to manage an organization or the way in which your employees communicate on the dealer level. However, one of the most significant issues a dealer faces is the degree of “playing sides,” that occurs on a daily basis. In which case, the HR director will often speak with the GM or Owner agreeing with their thoughts on what is occurring on the dealer level. That is everything from the manager's performance to how the employees view them as a manager. What the HR director often neglects to mention - when speaking with the GM or Owner - is the “managers” side of the story. Wherein, because they agree with the owner - despite having agreed with the sales manager regarding the issue a few moments ago - they offer a new story that can and will impact your career. A Manager cannot lead a staff if their GM or Owner does not believe in their capabilities. This also destroys any trust that was built with HR. Wherein, if you - as a manager - went to HR to discuss infrastructural issues thinking it was a confidential conversation - to then find out it was not only discussed with upper management but now HR was no longer on your side. This is not your HR director being a leader. This is a lousy HR Director.
Bad Performance Reviews. Putting Words Into Your GM’s Mouth. The Aftermath You Did Not Anticipate.
One of the worst things your HR department can do is put words into the GM’s mouth for an employee review. This can cause for bad morale and issues on the dealer level. For example, if the HR director has a problem with a said employee, and they “feed” into a misconception with the GM or Owner - not only does this reflect poorly on your HR department, but it can also cause for mistrust with your employee as they feel sandblasted for something that is not even related to them.
The other issue with this is that it is very easy for the employee to decipher - within the context of the review - if it was from your GM or HR director. And if your manager is able to see that the criticism came from someone that does not manage them and or is not aware of their work it can create mistrust. Where your sales manager loses their trust and respect for the HR director as they have - in essence - stabbed them in the back. Don’t be this HR director. This is not how you build a department or assist in the overall management of your companies morale.
100% Turnover. Same Management. Where is the Insight? Where is HR Director? You Can Only Point the Finger So Many Times Before Pointing it Back at Yourself.
While your sales managers have a direct impact on their team regarding turnover - the same is said for your HR department. Wherein, your HR department needs to be an integral part of the on boarding program. That is ensuring that the new hire has a space to set up. I cannot tell you how many times I have witnessed a sales consultant starting, but they do not have a computer, desk, or any of their logins. And instead of calmly explaining that we will get them their information, the Management staff would run around frantically - looking horribly disorganized - which put a very bad taste in the new hires first day. That said, it is best to avoid this approach and make sure that your staff has the right logins they need. The other thing to note - beyond the onboarding - is asking yourself, why there is so much turn-over? Is it the manager? Is it HR? Is it the GM? Turnover of any kind is not good, but when your turnover reaches nearly 100%, there is a much larger issue at hand. That is what is HR doing - on the dealer level - to both work with and develop the sales managers. If HR is working directly with the sales managers than the turnover ought not to be at levels, we deal with.
Bottom Line: HR is just as responsible for curating the companies morale and ensuring that the owner’s vision is translated on the dealer level. This cannot happen, however, if the owner does not have a vision and or the HR director is unable to connect the dealers. Working towards developing the leaders on the dealer level providing them the necessary resources. And no longer can HR simply offer that it is not up to them to work with the managers on Pay Plans or Job Descriptions. And while this is not to say that it is HR’s direct responsibility, they have to be able to facilitate an environment in which case the sales managers are allowed both approach and work on said projects. All of which will have a positive impact on the dealer level.
Do You Have an HR Department? If so, what challenges do you face?
1 Comment
Dealership News
HR both protects and stifles, it all depends on who you hire and how badly you may have been stung by a past hire that didn't work out.The smart executive hires an HR person but gives them very limited power and very specific functions.
Beltway Companies
A Leader Does Not Need to Take All of the Credit. It's Not All About You.
We have all worked with that one manager who thinks extremely highly of themselves. Making sure that you are not just aware of it, but that if you do not agree and or want to participate in spreading their fanfare, it will become a problem. In some cases even resulting in your getting fewer leads or showroom up's. That is not a leader. That is a lousy manager. A manager that if left to their own devices can single-handedly destroy a dealers morale causing the unnecessary turnover we struggle with. If that does not get our attention than perhaps we have more significant issues at hand to discuss. With the demands of our customers evolving we cannot afford to revolve the way we approach leadership around the requirements of a bad sales manager. Instead, we have to focus on how to develop a leader, and how to build a relationship with a manager that has what it takes to be an effect leader on the dealer level.
What Does A Leader Look Like? What is the Difference Between a Leader and a Manager?
A leader wants to lead his team by working towards improving the way they approach customer service on the dealer level. Knowing that because they are not managing but leading their sales consultants or service advisors, they will inherently be more successful. As their efforts will pay off with the results showing in their sales numbers. This approach cannot work and will become a problem, however, if the leader wants to take all of the credit for the results. But that is the mindset of a bad manager, not a leader. A bad manager spends their time knit picking at their sales consultants unknowingly working harder to prevent a team from forming unless of course, you are on their side, which yields its own damage to the dealer level. All of which can and will create a very hostile - walking on eggshell - environment that no one wants to work in. As taking all of the credit for your sales consultants efforts is not only destructive to your dealer's morale it can also affect their performance. Leaving themselves asking “is it me or am I just that bad of a sales consultant?”
Why Do You Need to Take All of the Credit as A Manager? Leaders Do Not Need to Take All of the Credit from their Team. Your Teams Success Shows Your Value.
This is not an easy question to have to answer, but it is an important one. There is an underlying reason as to why you feel the need to take all of the credit for the results. Or the notion that it is necessary for you to continue to parade around the dealership talking about how important or capable you are to the overall dealer's success. And how if you were to leave that the entire dealership would crumble. Albeit, this does take a lot of confidence to pull off. But that confidence does not always translate. Not to mention, this management style is often short-lived as they usually either get fired or quit as their sales team starts to crumble. In many cases, this bad manager is insecure and projects their own insecurities onto the sales team. They spend more time worrying about what their sales consultants think of them - wanting to be friends - versus being the leader they need to be in order to excel.
Taking Credit From Your Sales Consultants is Destructive Behavior That Can Damage Your Dealers Morale. How to Avoid this Management Style. How to Be A Leader Without Taking All of the Credit.
There is nothing wrong with your efforts being acknowledged once in a while. In fact, it is essential that your owner or GM appreciates all of the hard work that you have put into the dealership. However, when their need for appreciation and attention gets to the to the point of their wanting all of the credit for the dealer's success is when they become unhinged. This manager will go to great lengths to get rid of anyone that gets in his or her way. And because they are so entangled in their own need to be liked and appreciated they will easily let go of some of their key players. All because they do not feed into their ego. This is a bad manager. Not a leader. But this practice is commonplace in the auto industry. The other issue with this management style is that it discourages growth and development on the dealer level. Where your staff does not feel that they are able to learn or develop without walking on eggshells. Don’t be this Manager. Be a leader.
A leader knows that if their team is successful, the results will follow. And a good GM or Owner will recognize that because of their efforts and hard work that is why they are successful. However, it is vital that the GM or Owner does not lose sight of what their leaders are doing on the dealer level. Wherein, a lot of the behavior - and this is not excusing it - might stem from the fact that the manager does not feel appreciated for their hard work. A simple thank you or great job can go along way. An even better means of showing your appreciation for your leader's efforts is to provide them with some much needed time off. Allowing them to recharge.
Bottom Line: Not all Managers are bad. And not all leaders are great. The point is that it is best to ensure that your leader has a vision on the dealer level and is able to translate that vision in a meaningful way to their staff. Making sure that instead of taking all of the credit for the end result that it is more about what “we” accomplished as a dealership. Not what “I” did for the dealership. Understanding that a good GM or Owner will take notice and appreciate and compliment your leadership style without having to take all of the credit. Knowing that if you start to take all of the credit for the results, it can and will crush the morale at the dealer level. And no one wants to walk on egg-shells.
Do you take all of the credit? Have you worked with a manager like this before? If so, how did you overcome it?
6 Comments
Self
Loving this!!! Using words like "us, we, our" when speaking about your staff is a biggie. No one succeeds at this alone.
Beltway Companies
@Amanda, exactly! People want to feel as if they are a part of the dealers overall success. But as soon as that manager starts to wreak havoc on the morale, your dealer can quickly turn into egg-shell city. No one wants to work in that environment. And enough with the excuse "well they are a good manager. We cannot lose them," which only enables them to continue to manage badly.
DrivingSales
Great article @Derrick. It reminds me of one of my favorite quotes. "Victory has many fathers, where failure has none." Most managers don't know how to lead, they just repeat what the manager before them did. Most of them only know how to sell cars, and not how to lead. When they get on the desk, the develop "Menegertitus" (not an actual disease) They must be trained and mentored to be a great manager and a leader. Why don't GMs or Owners invest in their managers? Why do they expect them to figure out on the fly? Sink or swim doesn't work for salespeople, why would it work for managers?
3E Business Consulting
Derrick... GREAT topic! Unfortunately dealerships and many other businesses suffer from what I call, Promoting on Functional Excellence... Sales Consultants are promoted to Sales Manager or Service Advisors are promoted to Service Manager because they are GOOD at the FUNCTIONS of the job, even though they lack the People and Business Development skills they need to become successful Leaders.
Beltway Companies
@Jason, that is a great point. The GM's & Owners just *expect* it all to fall into place. And agreed, they become glued to their tower desk chair. Rarely getting involved in the day to day tasks. I mean when is the last time a GSM or Sales Manager picked up the phone to help make phone calls?
Beltway Companies
@R.J. I like that line! It never ceases to amaze me that they base the promotion on their simply being great at their job. Bottom line is that not everyone is cut out to be a manager.
Beltway Companies
Are You A Manager or A Leader?
Having the right leader in place on the dealer level can make or break the dealerships bottom line. Knowing that for every employee who quits costs the dealership as much as thirty thousand dollars. Yet so many dealers still fail to address the elephant in the room. That is hiring managers, not leaders. Where it is easy to hire a manager and let them do their thing. However, employee relationships cannot be developed or advanced without a leader to see their journey through.
That said, here are some of the top reasons your leadership is failing your dealership.
Your Expectations Do Not Match Reality. There is A Difference between Promising and Delivering.
Your GM calls you into a meeting to discuss the next quarter's sales forecast. In which case, you eagerly look at the OEM’s objective and do one of two things. That is mock it. Offering that there is no way your team can hit that objective. Crying foul given that the OEM does not often support their objectives with selective market data. The other approach, which is just as bad is your merely agreeing and saying “yep. We got this one.” Knowing full well that your team is not going to hit that objective. And instead of understanding “why your team will not hit the objective” you start to blame the “bottom performers” for not hitting the objective.
The issue (amongst many with this mindset) is that you never once stopped to ask yourself “why your bottom sales consultants are not hitting their objectives?” Where in many cases, you have not taken the time to train the sales consultants. That is the key difference between being a manager vs. a leader. Another issue, too, is that surprisingly even the GM’s and Owners often overlook the “manager” vs. the “leader” joining in on their sales managers tantrum as to they cannot hit the objective.
So when the end of the month comes around your attitude towards your sales consultants - who you have neglected to train or develop - is hateful. To which you in some cases threaten to fire them. All without having taken the time to mentor them or offer them a plan of action to become a better sales consultant. This mindset of overpromising without delivering can be a toxic one, which makes it that much harder for your team to respect you as a leader.
Brow Beating Your Sales Consultants Did Not Work Before. And it Will Not Work Now. A Leader Has to Evolve Offering New Ideas to Hit the Objective.
A bad manager will browbeat their sales consultants. Making every excuse known to man when they are under the gun of the GM or owner. In which case the wheels on the bus go round and round. As they will roll anyone they can under that bus before taking the blame for their inability to manage. This Manager continues to expect excellent results but does not have it in them to work with their team on “how to achieve the results.” Namely, what can they do to assist their team knowing that the demands of today's customer have changed.
A real leader, however, has a much different effective approach. Wherein, a leader will take the time to look at several data points. That is the historical trends in sales with the dealership to then reviewing his team's sales statistics. Aligning each sales consultant with a realistic sales goal. Those sales goals, however, are then mapped out for each sales consultant. That is the leader working with his sales consultants individually offering what they can each bring to the table to hit their objective. That can be anything from social campaigns, conquest letters, or even equity mining. So instead of being a “manager” take the time to be a “leader.”
Your Team is Checked Out. The Harsh Reality Many Managers Face.
It is no secret that once your team has checked-out, it becomes that much harder to engage with them. As your team is simply going through the motions to make it through the day. This mindset is terrible. Knowing that your employee's disinterest will make its way to the customer's experience. Another issue with this is that it hinders your team from using their creativity or aspiration to build their sales portfolio. No one wants to put in the extra effort if they do not believe it is welcomed or wanted.
So instead of having an empty audience - as everyone has checked out - take the time to have one on ones with your team. Offering each sales consultant advice or guidance that is unique to them. Knowing that each sales consultant has their own strengths and weaknesses. You would be surprised as to what ideas they have been holding onto without bringing them up. This will also allow you as a leader to build the much-needed rapport with your team!
Bottom Line: A leader will lead his sales consultants working with them. Not over them. Understanding that as a leader they have to be in it with the team as it will assist them in building both trust and rapport. In doing so, the results will follow, and your team will have the guidance they need to hit the dealers objective. So are you a leader or a manager?
5 Comments
Visionary Leader + Implementer in Chief. 70% of our sales are now from the digital space vs 3% when I started at this specific dealership 10 years ago. We make them Desk Managers look fabulous. All I know is non-internet savvy desk managers need to get the heck out of our way. Just hook onto us tightly. You don't want to fall off and be left behind.
AutoNation Ford Mazda
Good post, one of my pet peeves with my managers of the past, is them not knowing the difference between a manager and a leader.....it has always been my thinking that managers are about numbers and leaders are about people. Leadership will get the numbers, and without you having to be drinking buddies with your people. You set an example, an example that they will follow and even take that bullet for you, willingly if that was to be present. An exaggerated example no doubt, but the point they will work hard and willingly for you....they spend what 8-10 hours on that hot cement, show them you can do your job. Shut the heck up, get off that tower and do your job.
Beltway Companies
@Chris, K. well said! It is a huge pet peeve. Especially if the GM or Owner allows them to make decisions when it comes to how the CRM ought to be managed???? Does not make any sense.I cannot tell you how many times they would offer how leads have to be managed, but they never *ever* spent a day answering leads.
Beltway Companies
@Casimiro, I completely understand! From experience, we'd be slammed all day on the phones, marketing, chats, etc. all while some of the managers were busy trying to be friends watching YouTube on their phones, which slowed the internet speed making it hard to look up inventory on the phone. Not to mention, just the sheer amount of customers they'd let walk by on the lot (or that they did not notice) because they were glued to the tower.
3E Business Consulting
Derrick... Great post, and you touched on two of my most frequent consulting challenges: (1) Managers who were promoted on "Functional Excellence" (i.e., Top Sales Consultant promoted to Sales Manager or Top Service Advisor promoted to Service Manager); (2) Managers holding the same performance expectations for every member on the Team.
Even though you designated it as Manager or Leader and I approach it as Managing or Coaching, it appears we see the same need for Awareness, Skills Development, and Organizational Development in the Dealership's Management Ranks.
Beltway Companies
Top Reasons Managers And Employees Do Not Get Along
Managing is not easy. There are several components that make for a successful manager and employee relationship. Knowing that everyone has a distinct personality. And that some personalities are stronger than others. A strong personality, however, is not always the reason why an employee and manager do not get along. To ensure you are doing your best to get along with your team - or manager - here are the types of situations to avoid. Knowing that if everyone gets along the better the results will be on the dealer level! As nobody wants to walk on eggshells or feel like they do not belong at the dealership in which case the dealer can lose a really valuable employee.
Top Three Reasons Your Employee Does Not Get Along With You:
You Think You Know More than You Do
There is nothing worse than working for a manager who thinks they know it all when they do not. No one knows it all. However, when the manager has that mindset - always having to be right - it makes it that much harder to work with them. As their attitude and mindset can and will crush the dealerships morale. Where in many cases the sales manager is able to rid of the employees who disagree with them. All of which hurts the dealership. Noting that there is a key difference between being wise and knowing it all. Having the right mindset will make it that much easier to gain your sales consultants respect. And when you have their respect it is that much easier to build a relationship with your team.
You Are to Nice. You Do Not Have Boundaries. You Want to Be their Friend.
Not everyone is cut out to be a sales manager. It takes a special mindset. However, in the auto industry, it is not uncommon for a top sales consultant to become a sales manager. Where in many instances they are soon going to manage their former co-workers. This can be a recipe for disaster if boundaries and expectations are not clearly outlined before making the changes. Knowing that your having been promoted can and will ruffle some feathers. But there was a reason you were given the manager position. So it is best to find a sense of balance - that is the way you approach your former co-workers. Understanding that is best to lay out the boundaries from the beginning sticking to your guns. Knowing that if your co-worker cannot respect the boundaries that you have to be a manager as hard as that might be. Otherwise, they will not respect that you are a manager.
You Do Not Have A Plan of Action. You Constantly Are Changing Your Mind.
Plans can change. That is not uncommon in our industry. However, if you are unable to have a consistent plan of action it becomes that much harder to work with you. In which case, the employee might become confused or disinterested as they are unsure as to what the next steps are. The other issue with this management style is becomes that much harder to track their results. In addition to holding them accountable as their responsibilities continuously change. That said, it is best to have a clear plan of action, which might have some updates here and there. However, there is a difference between a few updates and an entirely new plan of action.
Top Three Reasons Your Manager Does Not Get Along With You.
You Are Never On Time.
There is a schedule for a reason, no? Running late does not just affect you, it affects your team and your dealership. This is especially true when you are running late on a day in which your customer’s vehicle is being delivered. That very customer is then made to wait around for you. Where if they were to go right into finance - the finance manager might be off and or not have the necessary paperwork - or know what the next step is with the customer. Making for an awkward experience for your customer. The other issue, too, is that when you do finally make it in your in a rush. And as we know, if you are in a rush the chances if your making a mistake dramatically increases. That mistake can make or break the customer's experience. So instead of being late, take some time of your day to effectively plan the next day. Knowing that there will be certain days that require additional time. As the more prepared you are the better off you will be.
Do Not Take Direction.
One of the most frustrating things as a manager is you question everything your manager says. As in many cases, their instructions are coming from the GM and Owner. That said, if you have the urge to question your manager it is best - and most respectful - to pull them aside privately and voice your concerns. Knowing that questioning them in front of your co-workers is not only disrespectful it can cause unnecessary hardship. And while you might truly believe that your idea is the best idea for the job at hand - more often than not - you do not have all of the facts. Wherein, there is more than of what meets the eye.
You Think You Know More than You Do
Just like we do not want the manager to act as if they know it all. It is just as frustrating for the employee to act as of they know more than what they do. Especially when the manager is taking the time to work with you one on one to assist you with your sales plan. That said, it is best to have a conversation with your manager if you're frustrated. However, it is best to do so respectfully as being disrespectful is not best for anyone. Knowing that any of the assistance your manager is offering should be coming from experience.
Bottom Line: It takes both parties to make a relationship work. Where both the manager and employee have to understand that we all have different means of communicating. The manager, however, has to ensure that they are providing their employees a clear direction. Empowering them to do their jobs versus micromanaging their every move. Taking the extra minute to make sure that everyone is on the same page - working as a team - as it will offer the dealership far better results.
What is your best tip or practice to make sure everyone gets along?
7 Comments
I like how you had "you think you know more than you do" to both the manager and employee. This is so true, and usually the culprit when communication begins to break down!
Dealer Analytics
I have found that having clear expectations and treating my team as the capable, intelligent adults that they are gets us far. Respect in all communications is also essential. I also like to throw is some fun, because, hey, you're at work every day. It's a huge part of your life. Might as well enjoy it!
Beltway Companies
@Scott, absolutely. Respect is a two way street. And from experience, it is quite difficult to work for someone with that mindset.
Beltway Companies
@Tracie, I agree 100% - as an employee, we do not just want to feel empowered, but supported. Your management style is what creates a dynamic environment! One where your team feels apart of the bigger picture! And humor is a must. We all need a good laugh here and there. :)
All American CDJR of Midland
Great post! Very well thought out and articulated. I can identify with every point on each side - I've either been that guy, worker for him or managed him. Thanks for the insight.
3E Business Consulting
Thanks for giving a perspective from both sides of the employee/manager relationship.
Beltway Companies
The Ultimate Guide To Structure An Effective Sales Meeting
A sales meeting should pump your team up not deflate them. Where they leave the sales meeting feeling defeated. Part of what makes a sales meeting successful is ensuring that you have all of your information in front of you - such as reporting and team performance - allowing you to quickly offer your sales team what is going on. However, more often than not the sales meeting is not productive, and your sales consultants do not feel that they have gotten anything productive out of it. To avoid this feeling, here is the ultimate guide to having a successful sales meeting.
Not Everyone Has to Attend. Split the team into Two Groups.
More often than not the sales manager will say “great weekend,” or “bad weekend,” but does not offer why it was a bad weekend other than providing excuses such as the leads being down, bad weather, or whatever other excuse was available. Instead of giving reasons as to why you did not hit the objective to the team, it is best to look at their individual performance. Offering each of your sales consultants a report that shows the following: sales opportunities, internet leads, phone calls, texts, emails, demos, to’s, quotes, & sold customers. In which case, the report will outline what their activity was for the month to date in addition to the weekend.
At that point, as a manager, you can see where the store is for the month and what each of your sales consultants is contributing to the store. For those who are not hitting their objective, it is best to have a separate one on one meeting. As you do not want to “deflate” the top performing sales consultants in front of those who are not meeting their goals. Instead, this time - during the meeting - can be used to work on areas that need improvement. Where your sales consultants can take away an “actionable” item from the meeting. Whether that is improving their demo or making more phone calls, which will, in turn, increase their appointments.
As for the top sales consultants their meeting it is best to work with them. Taking the time to ask them what, if anything, they need to hit their objective. If they need some assistance in catching up with their follow-up, then take the time to make that phone call or email. In doing so, the sales consultants will know and most likely appreciate your efforts to assist them.
Discuss Key Information. Marketing Programs. Sales Objectives.
Another critical aspect of having a successful sales meeting is to ensure that what is covered is both relevant and necessary. Where more often than not dealers do not take the time to explain the current marketing efforts to their sales consultants. Making it harder to achieve the objective when the customer calls in and the sales consultant is unaware of the special the customer is referring to on the phone. That said, if a new marketing campaign were to come out is best to have a quick ten to the fifteen-minute meeting to discuss the latest specials. Making sure the sales consultants are aware of the program.
Once you have taken the time to discuss the current marketing campaigns, you should outline the sales objective. Making sure the sales consultants know what the number is that the store needs to hit for the month. However, there is more to hitting the objective than simply sharing a number. You should take the time in the meeting to outline the plan of action. Namely, how it is that your still will hit the objective working as a sales team.
Vendor Updates. Any Changes?
Vendor updates are often overlooked or unnoticed. That said, the sales meeting is the time to bring up any concerns or issues or updates with your vendor. Namely, if the CRM has been updated and there is a change in the sales process - how you access deal packets, etc. - then it is best to remind everyone so that your day is not interrupted multiple times to review the same update. Allowing you to focus on what is most important. That is working with the sales consultants to increase sales.
Bottom Line: Meetings do not have to be complicated or frustrating. Your sales meeting should pump your sales team up. They should be leaving the sales meeting excited and ready to take on the month. And part of what allows for that to happen is ensuring that they know where it is they stand for the month. Working with your sales consultant to outline a plan of action - based on their activity - of what they will do to contribute to your store's sales objective.
Another key aspect and takeaway of a successful sales meeting are to ensure that when you are having a sales meeting to take the time and make sure that your sales consultants are aware of any current specials taking place. Remembering that a sales meeting does not have to take all morning or afternoon. The more prepared you are - having an outline - the more successful your team will be for the month.
Do you have an agenda for your sales meeting? Do Your Split Your Team Into Two Groups?
4 Comments
It's very true, most sales meetings I've been to should have been an email. This is a great guide and information, thanks for sharing! Did you put this together from experience? You should write a book! :)
Beltway Companies
@Scott, thank you! I sure did. And I know, I need to make it happen. Unproductive meetings can set a negative tone for the day. It is all about maximizing efficiency.
3E Business Consulting
Unfortunately, most Sales Meetings (across many, many industries) have become similar to a visit to the dentist and getting the Sales Team into the room for the meeting is like herding cats.
Usually, I use the Speed Dating method for meetings... 10-12 minutes and we are done! Most of the time I have someone time the meeting to reinforce that the meeting is shorter then expected.
Also, I use the sandwich format for the meeting's content (bread / meat / bread): Bread (something we do well), Meat (something we need to work on), and Bread (another thing we do well). So each meeting, I am asking the Team to work on ONE MAIN THING... the MEAT!!!
So with 4-8 Sales Meetings a month, we can ask and focus and/or refocus the Sales Team on the actions/activities that will IMPACT the Sales Results.
Beltway Companies
R.J. I am stealing your idea! That is great. The simpler the meeting the better. I never understood why dealers would have as many as 4-5 meetings a day. All without actionable takeaways. Never accomplishing anything. To then have the same conversation a week or two later. The other issue we face on the dealer level is that in many instances the GM does not allow their management the time needed to work on a project. Or worse, they have to many people involved in the meeting. All of which creates more chaos and less productivity.
Beltway Companies
6 Tips for Dealing With Difficult Employees. Are Your Buttons Jammed?
Let’s face it. We have all had that one employee that has jammed every one of our last buttons. Pushing us to the edge as we question ourselves. Asking why we thought getting into management was a good idea. Yeah, that employee. The one that seems to interject at the wrong time. The one that oversteps their boundary disrespectfully. The one that seems to never be happy no matter what. The one that thinks every little, minor, detail is a huge deal. That very employee can make or break you as a manager. Where it is easy to just give up or simply fire them. But as we know, the easy way out is never actually easy. In fact, it can make things worse. That said, that same employee might not get along with us because we might actually see a bit of our old selves in them. So instead of giving up here are eight tips to help you unjam your buttons, and get back to work!
Set Clear Expectations. Avoiding Loose Ends That Can Lead to Misinterpretations.
As a manager, it is sometimes easy to assume that your employee knows what it is you are asking for - however, that is not always the case. We have to remember; there is a reason you are in the management position. Noting that the employee might not think the way we do. Namely, just because s/he processes, information differently does not make them a bad employee. Instead, it means that instead of getting frustrated because they are not on the same page we have to take the time to ensure that there are clear expectations regarding the task at hand. This will allow you to focus on what is most important, the results!
What Jams Your Buttons?
We all have distinct personalities. Afterall, that is what makes us unique, no? Well, so do your employees. Where because we have our own unique personalities and there are some things will drive the living daylights out of us. That otherwise is a non-issue for others. That said, we cannot expect our employees to comply with our line of thought. Instead, it is best to balance our expectations. Being careful in the way we approach our employees. For example, if you see your employe completing a task - taking much longer than they should - it is best that we take the time to explain why it is we are asking them to do it a certain way. Knowing that is not about explaining it as “the right way,” but a more efficient way that will not only benefit the employee - as they have increased their productivity - but also the dealer.
The Know it All.
There is nothing - and I mean nothing - more frustrating than dealing with the “know it all,” but guess what? Sometimes that can be the mindset of the manager, too. Now imagine how the employee must feel if that is how you manage them? Especially if (as mentioned above) everything jams your buttons. One of the best ways to handle this sort of employee is to sit them down. Offering that while they believe that offering their “expert” opinion is both vital and necessary that there is a time and place to offer their ideas.
Think about it. The purpose is not to crush their “go-getter” energy. But rather harness and align that energy into something meaningful. For example, if they are an expert on social media then take the time to work with them - allowing them to assist others. This way their “know it all” effort is constructive and productive. As even other employees can find that mindset frustrating.
The Unmotivated And Disinterested. The Procrastinator. The One That Cannot Prioritize.
The sun could be shining, breeze in the air, showroom busy and they would still find something to complain about. You want to look them square in the face and say “really?” - However, we both know that approach will not work. Deep down inside, there is something that motivates this employee. Finding that source that motivates them is no easy feat. But when you do come across that source of motivation, it will peel back those unproductive layers! To find that motivational “source” you have to sit them down and have a conversation. The way in which you handle that conversation, however, can make or break that employee. Knowing that the goal is not to beat them over the head because your buttons are jammed. But rather, offer them support and encouragement in a meaningful way. Asking the hard question “what motivates you. For some, it is money, success - what is yours?”
If they cannot give you an answer and or are unwilling to make an effort to work with your team, then it becomes time to make the hard decision. That is whether or not to keep them on board. As you know that ill-productivity breeds ill-productivity. You do not need them walking around playing You-Tube videos distracting your A-team as they are trying to make phone calls. But if you do not give them a chance - trying to work with them - figuring out what makes them want to work harder then shame on you.
The Negative Nancy. Everything is a disaster. Or a Primetime News Cycle. Shut. it. Down.
All they need is a microphone and a TV crew, and they would be the prime time news anchor. You know it is terrible - when as a manager - you purposefully avoid that employee when you come in. Or find every excuse known to man to avoid their presence. Where your eyes glaze over as they spill the beans on what you already knew giving the story a new edge and spin. One worthy of being on ENews. The problem with not dealing with the jammed button. Is that, well, they - the negative nancy - are stuck on their own channel. As a manager - whether you like it or not - have to deal with the situation. As you very well know that negativity can spread like wildfire. And while they might be a good person, the drama is not needed.
As far as handling this employee, there is a delicate balance that is needed. Given that they love negative attention. So pulling them into a “private” meeting gives them a means of creating a new storyline once they leave your office. Knowing full well that they will make their rounds making up a new saga, which was simply a meeting to shut it down. That said when you do speak with the negative Nancy be to the point and honest. Offering that certain conversations are not appropriate within the work-place. And if you hear they are discussing confidential or otherwise inappropriate information, they will be written up, suggesting that not everything needs to be shared. Where if they continue to bring in personal dramas be sure to offer them resources that are available within HR. Offering a solution. Or rather, a more appropriate outlet to discuss their dilemmas.
They can be a great person. It just takes a good manager to be able to differentiate an anomaly vs. everyday behavior. But as the manager, you have to make sure you handle it. Otherwise, they can wreak havoc on the morale of the company. All which can have detrimental consequences to your dealer's overall performance.
The workaholic. So Many Hours. Little Results. What Happened? The Company Martyr. They Do Everything. And According to Negative Nancy, Its a News Worthy Event.
Agh, the employee whose time card looks the like average front-end gross of a new vehicle. The company Martyr. The one who works 65 hours a week, but sells less vehicles than the sales consultant that works 40 hours (which is not limited to just the sale consultants. There are managers who are guilty of this too), thinking that the reason the other sales consultant is selling more vehicles must be because they were given all of the leads. When in all actuality, it is because the sales consultant - who works 40 hours a week - better manages their time. Knowing that just because you work longer hours does mean that they are better or more productive.
That said, as a manager, it is best to pull activity reports from the CRM. Noting how many calls each of them made, emails, texts, etc. Showing the Company Martyr that sales rep B actually made more phone calls, emails, and texts. If that does not wake up Sales rep A, then there are more issues than you thought. But the biggest thing to take away with this is that instead of getting frustrated with the employee lashing out at them. Figure out and understand why they want to spend so much extra time at the dealer? Encouraging them to find a healthy outlet to relieve their stress. This way, they are not only happier but they are more productive.
So, How to make it All Happen?
So how to keep all of your buttons from jamming? Well, that depends on you - the manager - and how you work with your employees. Where if you ignore the elephant in the room or do not set clear guidelines and boundaries than you only have one person to blame. You. Management is not easy. If it were easy, we would all be managers, no? So before you lash out at an employee, it is best to figure out why they are acting or engaging in a behavior that is otherwise not conducive to the dealer. Taking the time to work with them. As the more effective you are in communicating with your employee the more likely they are going to work with you, bettering themselves. All of which can and will have a positive impact on the dealership.
No Comments
No Comments