Beltway Companies
Where Are We With Texting?
It has been well over a year since I last spoke about texting on the dealer level, but it does not seem that we have made that much progress in the conversation. Other than dealers are working towards using CRM's that have a texting tool implemented in the CRM. However, they still struggle with the fact that their sales consultants are using their own devices to text, email, and call their customers. Has your dealer made any significant changes regarding texting, emailing, or calling from their personal devices?
Check out the original blog post here to join in on the conversation!
Beltway Companies
Year-End Bonuses? Another Year. Another Check Written.
You get a bonus. He Gets a Bonus. She Gets a Bonus. We All Get Bonuses? It is not uncommon for the sales consultant to receive a year-end bonus based on the volume of their sales, which does not sound bad, right? As for the volume of the bonus, I have seen $2.50 per unit under 125 units sold and as much as $7.50 per unit for those above 250. The bonus was then paid in December. So what is exactly wrong with this bonus structure?
There is nothing wrong with bonusing your sales consultants for their hard work. However, when it came to the top dogs, they would usually take it easy in December knowing that they were about to receive a huge payout. Knowing that selling a few more units was not that much more money. If a dealer is counting on those few sales consultants to carry their December, it might not work out. For those who did not sell as many units, less than ten a month, the bonus was not necessarily warranted; especially if the sales consultant did not have the best CSI scores, which can cost the dealership thousands of dollars.
That said, here are some of the top concerns, and alternative approaches that are not only beneficial to the sales consultant but also the dealership.
What About the BDC Managers/Marketing Directors? Where is their Bonus?
I get that BDC Managers or Marketing Directors are seen as overhead - the idea that they do not physically sell the unit. However, that does not mean that they, too, do not deserve a bonus. After all, the BDC Managers are the ones managing the CRM, vendor accounts, phone calls, appointments, etc. A $1,200 to $1,500 can go a long way. Not just for the overall morale, but it will also encourage them to start the new year off on a strong start. We tend to forget how much work they do on a daily basis. Not to mention, all of the extra things they do that - in so many cases - goes unnoticed.
Sales Managers? I Know Results Are Expected. But They Deserve A Year-End Bonus.
In our industry, it is not uncommon for the sales consultant to earn more than their managers, which seems odd; however, is warranted depending on the situation. That does not mean that your sales managers do not deserve a bonus. One of the ways to approach this issue is by giving the managers a year-end bonus if they have hit their objectives. The objectives could be KPI’s that are well thought out, and in alignment with the dealership's goals. However, in many cases, the dealership's goals - for bonuses - are so unrealistic to the point where they will continually change the pay plan if they believe their manager or staff is making to much money. You might not think that happens, but it happens far more than you would think or want to admit. Where the dealer would rather run the risk of losing a solid employee than pay a decent living. It's a vicious cycle that can have a detrimental impact to a dealers bottom line.
The Bonus Can Be Tied to Personal Goals Too!
Selling units are the primary goal. We get that. However, there is more to selling units than the physical act of doing so. In fact, the more connected the employee or manager is to the dealership the better their results will be. Instead of focusing a bonus on a number focus it on the bigger picture. That is their performance. If there are specific areas in the dealership that need focus or attention align their bonus with the task at hand. In doing so, it will encourage them to take on the extra work-load. In doing so, it not only builds their experience, but it also has a positive effect on the dealership.
Bottom line: it is easy to cut a check based on units sold without thinking twice. However, there is more to bonuses than simply stroking a check. Not to mention, there is other essential personnel that does not get the credit they deserve, and while $1,200 - $1,500 does not seem like a lot of money, it can go a long way in not just boosting your dealer's morale, but encouraging them to continue to go the extra mile. So instead of just stroking the same check year after year work with each employee and design a bonus plan that makes sense for both them and the dealership.
How to does your dealership handle year-end bonuses? Does your BDC Manager or Marketing Director Get a Bonus?
3 Comments
DrivingSales
Does anyone incorporate dealership profit-sharing? Specifically for managers?
Beltway Companies
That was discussed at my last group, but not enacted on. As for the new group, they offer increases in their 401k match program, which is awesome!
Automotive Group
Our group pays out small holiday bonuses to everyone in the dealership in December. It’s only based on how long you’ve worked for us.
$100 - under a year
$300 - 1-10 years
$500 - 10+ years
Beltway Companies
Leadership is not About Managing: Top Reasons to Empower Your Managers
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?
6 Comments
3E Business Consulting
Derrick... GREAT Advise!!! Following this process would make any Manager more of a Coach and less of a Micro-Manager.
DrivingSales
Agreed RJ. Coach = Leader, and we need more leaders in the dealership.
I've experienced both sides of this. I've had bosses that let me stretch and grow as well as those that felt like they could always do my job better than me. There is a major difference in these two cultures.
3E Business Consulting
Bart... Likewise, I have experienced both cultures. Fortunately, one nugget of wisdom from my first Manager Trainer proved invaluable, "Learn everything you can from every manager you work with... KEEP what they do well and AVOID what they do wrong!"
Beltway Companies
@Bart, it is an incredible feeling when you have the autonomy to grow and develop. One of the biggest takeaways having been micromanaged in the past is the fact that I did not realize how negative/cynical I had become. Whereas now, it is strongly encourgaed to bring new/innovative ideas to the table. And as a result of that, it pushes me to colloborate and develop new ideas.
Beltway Companies
@R.J. - I like that quote! And that is exactly what I did as I worked my way up to the BDC Manager role. It was always intriguing, though, to see the "old school' ways of doing things. The managers that refused to adopt made their way out.
Beltway Companies
Best Idea Contest 2018: The One that Caught My Attention
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?
6 Comments
Beltway Companies
Thanks, Chris! Same! We will have to catch up soon. There was a lot of good stuff this year at DSES.
Dealer Analytics
Could not agree more! Helping dealerships hold their vendors accountable for performance is one of my company's top priorities. Dealerships work too hard for their money to throw it away on empty promises from vendors who are only interested in showing "results" via their own back end reports. Google Analytics is the most impartial way to compare apples to apples when it comes to digital spend. The info is there if you know how to access it. Great article!
Beltway Companies
Thanks, Tracie! And that is awesome. Sadly, in many cases, dealers do not necessarily know what questions to ask the vendor - where the dealer will often say "leads are down," to which the vendor will offer an excuse or that they are not spending enough money! When in all actuality it is due to the money being spent inefficiently.
Dealer Analytics
Very true. Quality of leads matters too. There is a difference between a Click to Chat lead and a completed Finance Application, and again Analytics is the tool to give dealers insights into both quantity and quality of leads coming in. It's all about setting up the right Goals and knowing how to dig into the info Analytics provides. I hope dealers take your wisdom to heart!
Beltway Companies
DSES 2018: Take the Time to Plan for the Future!
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?
No Comments
Beltway Companies
Global Dealerships. What is the Difference?
One of the things I enjoy most when traveling abroad in Europe - Greece, Italy & France - is taking a closer look at their automotive trends. That is understanding how dealers operate in Europe. Namely, what are some of the biggest differences on the dealer level? Here are some of the key differences and a few are worth taking a second look at!
Store Fronts Without Dealer Lots. Limited Inventory. The Interior is More of a Meeting Place than a Traditional Showroom.
One of the biggest differences between the US and Europe are the physical dealership location themselves. Where for us, it is about maximizing the real estate we have. Making sure we have the right vehicles parked out front with sale prices. This is not the case for many of the dealerships in Europe. In Paris for example, the dealers are mostly in the city center. The entrances are grand with floor to ceiling windows that showcase a few select vehicles. The OEM logo is a prominent feature on the exterior, but blends in with the overall building. As for the interior, there are only a few vehicles parked in the dealer showroom. In fact, it is not really a showroom, but rather a meeting room to speak with new buyers. This is a far cry from the dealership setup we are accustomed to with showrooms being a focal point of the dealership.
Test Drives? Demos are not as Prevalent as they are with us. The Customer Buys the Vehicle Sometimes Without Test Driving it!
I was able to speak with a dealer and I was told that in many cases the customer will purchase their vehicle and have it delivered to them either at the dealership or at home. But in many cases, all of the decision making is done at the store and it is a very straightforward process. I have always believed that a test drive is a key aspect of making a deal happen. Where if the customer is not happy with the vehicle than all bets are usually off when it comes to selling the vehicle. Would you purchase a vehicle without test driving it?
Key Takeaway?
The biggest takeaway was the fact that from the two dealerships I visited they were very focused on customer service. As for inventory, there were very few cars on the showroom floor. If the customer wanted to review another model it was done so by going online. The sales consultant would then review and explain the features at the desk. And while that is not the case for all European dealerships, it is quite different than of what we are accustomed too. Lastly, when I mentioned the word BDC I got a confused look. BDC centers are also not common. Bottom line, I always encourage you - when traveling abroad - to take a minute and tour a dealership. It is always fascinating to see what the major differences are in how we operate on the dealer level.
What is one of the biggest differences you have noticed when traveling abroad?
No Comments
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.
10 Comments
Arthur Bratton
Holiday Automotive
Bagel on this end, but I would love to hear any success stories.
Does anyone use any "Text Us" CTAs other than the annoying chat bubble overlays that cover limited mobile real estate?
Ryan Gillis
Reliable Motors
We implemented marketing material on all our new and pre-owned inventory, those materials instruct the customer to text that specific vehicles stock# to our SMS number for "more details and vehicle info." This will bring in leads mainly from evenings and weekends. Works quite well for us.
Also, it ensures that our salesmen remain complaint with regulations, we have a history of each sms conversation with customers(in the case of a dispute).
Bobby Morales
Ford Dealership
Hi Derick,
We use Ford Direct / ELead and it works like a charm for email and text along with click to call. The mobile App also works although it is easier to use the desktop version. We (Management) have tried to implement for the salespeople in retail to use the CRM via their app to text, email and call to their customer.
Yet, retail salespeople continue to say it is too complicated or it is not working and they go back to using their own phone to make the call or text. Management does require for Internet sales to be able to show follow up via the CRM. Yet with retail sales they are more lenient.
Until we as management; decide to hold everyone to the same rule for coverage via the CRM; we will continue to have many salespeople use their own private devices to communicate with the customer. There is no accountability with sales consultants using their own devices to communicate with store customers.
Mark Rask
Kelley Buick Gmc
I am getting very mixed messages regarding the legal requirements of texting The customers. Please share any insite that you guys have
Derrick Woolfson
Beltway Companies
@Arthur, we used texting as one of our CTA's and it worked out very well. Especially for pre-owned inventory. I also think people were surprised that it was not a robot texting them, but rather an actual person. The texting app also made it very easy to send both video/photo right from the app.
Derrick Woolfson
Beltway Companies
@Ryan, that is awesome! I have not seen that done before. That is something I will have to try out.
Derrick Woolfson
Beltway Companies
@Bobby, I feel your frustration - we also used Elead in my last auto group, and I will say when they first launched texting - through their mobile app - it was not the greatest. Especially if you did not have good cell service/Wi-Fi. However, at this time - there really is no excuse not to put the customer in the CRM to use their texting platform. If anything, they do not want to put the customer into the CRM for the fear of losing them and/or the manager getting involved (at least that is what I have experienced).
Derrick Woolfson
Beltway Companies
@Mark, I agree - I have not heard much more into the matter. It is also evident that each provider has a different method when it comes to the "opt-in" / "opt-out" process. Where some of the vendors have a process that automatically opts the customer out if they say things like "Stop" / "no" - whereas others, the dealer has to personally manage the opting out of the customer.
Bobby Morales
Ford Dealership
Derrick, I agree. I feel also it is just pure laziness on the salesperson. Just today, I gave a lead to a retail person to please follow up and make the call via the CRM with click to call as he has ELead installed as an APP via his smartphone. An hour later, I look to see in the CRM that had not called or sent a text via the APP. I called him into the office and he indicated it was far easier to use his own phone instead.
Needless to say; I had someone else from Internet Department take over. The call and sent a Text to the customer via the CRM. Within 10 minutes, they received a text back via the CRM requesting to come in for a test drive tomorrow.
I have my work cut out for me in changing the culture of how we do business. It is usually the older car salespeople that just keep fighting any change even when it is to their benefit. We show them the benefits, We offer to teach them - yet; they find any number of excuses why they do not want to use it. Having to place change in front of some people who have been told for years "this is the only sales process you need to learn" is a big change.
Derrick Woolfson
Beltway Companies
@Bobby, I have to admit - I like when that happens. Not for the sake of it, but rather showing there is a reason behind what you are asking. I 100% agree with the culture change and know how frustrating it can be. It took some time in my last group for the culture to change, and for the management to be onboard with the CRM. In fact, the first time there was an issue (or a non-issue, and a user error) they discredited the entire CRM. One of the things I tried to be cognizant of was the notion that those who have been in sales for years have a tried and true process, and when something new evolves that can potentially threaten (in their minds) their ability to sell they freeze-up - the idea that they know what works to earn them a living. So when we come in with changes it can be perceived as a threat to their income. So to combat that, I offered (and not all accepted by any means) to put all of their customer data in the CRM for them so all they had to do was at least look at the CRM. After a few weeks, and their realizing how easy it was to simply "look up a customer" they started to catch on. No more fumbling, awkwardly, in the showroom floor to find that one random piece of paper they wrote down a phone number on - or better yet, fumbling through several thousand OutLook emails, haha!! All that to say, the Management has to be on board first, but if they perceive the CRM as a threat to their performance it becomes that much difficult to have your sales consultants use it.