Improving employee engagement is a vital initiative in dealerships today. As the market ebbs and flows, interest rates and inventories fluctuate, an agile team can help you maintain some consistency. Additionally, a recent Gallup State of the American Workforce study discovered that engagement was a key component of successful companies. In fact, businesses with engaged employees were 21% more profitable.

One of the key factors of employee engagement was coaching. According to Gallup, employees in today's workforce desire more ongoing conversations instead of a yearly performance review.

At first glance, this implies fewer formal discussions and more informal conversations. However, this is not the case. To coach correctly and provide ongoing feedback, you need to have formal systems in place. Let's delve into what I mean.

Quotas and Metrics

An employee must know what "good" looks like in your dealership. This requires you to define success with a list of quotas and metrics. A quota is a measure of success. For example, "Appointment Set %." A metric is the specific number you expect the employee to achieve within the quota. For instance, you could define 60% appointment set as world-class, or a five-star rating.

Mapping out these quotas and metrics is a valuable exercise for managers. You can define the attributes of an exemplary job role and determine what is needed to enhance performance in each quota. A coaching session with an employee is not an "ad-hoc" effort but a directed conversation designed to help them improve.

Measuring Actuals vs. Quotas

You can't identify performance gaps without a formal, clear set of quotas and metrics that define success. Employees need to know what "good" looks like. You need to establish processes and reporting from your CRM, etc., that capture actual performance within the quotas defined above. This clear data then paves the way for informal, ongoing conversations. Both parties know what needs improvement, and your coaching can be tailored to their specific needs.

Coaching your team is a powerful way to improve performance. You can identify gaps in performance and leverage andragogy by assigning relevant, contextual activities and training. Because it's relevant, the employee has a better chance of absorbing and applying the coaching.

A Formal Process for Coaching

Effective coaching requires a consistent process. For example, it may begin with a review of the quotas vs. actuals, followed by a conversation on what the employee wants to improve. This should be a conversation, not a preaching session. You are there to guide the employee, not dictate what you want them to do.

To create an environment conducive to this open two-way conversation, you should have a formal process in place. The employee shouldn't have to guess how the session will progress. They need to know that the coaching session has clear expectations.

Creating a formalized process with clear data can foster an environment where managers and employees can focus on development. When the employee drives this coaching session, they become more invested in their career growth, promoting engagement. This engagement is the "secret sauce" your dealership needs to weather any economic storm and become more profitable.

If your dealership ain't leading with a Customer Data Platform and first-party data, you're last!

Watch the recording to learn from experts Scottie Sigmon (President of Hippo Media Group) and Brian Davis (VP of Sales and Solutions at Orbee). They share their insights on how first-party data provides opportunities for an entirely new level of personalization. For example, it allows you to identify exactly where a shopper is in the buying process, properly segment website traffic for increased conversions, and even automate your marketing and communication based on the customer's position in the lifecycle journey. 

In short, Scottie and Brian show you how first-party data allows you to work smarter. Much smarter. 

By leveraging a DMS, you can transform your dealership's efficiency, customer experience, and financial management, ultimately gaining a competitive edge in the market. But it's imperative that you select the right one for your store and your unique needs. 

Discover what you need to know to make the best decision possible.

In today's competitive landscape, dealerships are recognizing the significant role employee engagement plays in driving overall profitability. Let’s explore the direct and indirect impacts of employee engagement on financial performance and highlight the strategies you can adopt to enhance engagement

According to Gallup’s State of the American Workplace study, highly engaged business units resulted in 21% greater profitability. Why is employee engagement so important?

First, employee engagement fosters a sense of commitment and motivation, leading to increased productivity and performance. Employees are” invested” in their careers and the success of the dealership. They are more likely to put in extra effort, going above and beyond their job requirements. They are driven by a sense of purpose, aligning their goals with those of the organization. Studies have consistently shown that engaged employees outperform their disengaged counterparts in key performance metrics, resulting in improved operational efficiency and effectiveness.

Next, a highly engaged workforce is more likely to stay loyal to a dealership, reducing turnover rates and associated costs. Engaged employees are emotionally invested in the success of the organization, which translates into higher levels of job satisfaction and commitment. They are less prone to seek alternative employment opportunities. Moreover, lower turnover ensures that valuable knowledge and expertise are retained within the dealership, facilitating efficiency and having a positive impact on profitability.

In addition, employee engagement also influences customer satisfaction and customer loyalty. Engaged employees who feel valued and supported are more likely to deliver a better overall customer service experience. They exhibit higher levels of empathy, problem-solving abilities, and dedication, which translates into enhanced customer interactions. Satisfied customers are more likely to become loyal, leading to increased repeat sales and service business and referrals. This, in turn, generates higher revenues and contributes to overall profitability.

Engaged employees are more likely to contribute and participate process improvement. They feel empowered to voice their opinions, share insights, and collaborate with their peers. Such an environment fosters creativity, problem-solving, and a culture of innovation. They are more “agile”, and can better adapt to change. They embrace new technologies and processes, leading to operational efficiencies and competitive advantages.

Engaged employees also tend to have lower absenteeism rates and are more punctual. They often exhibit higher safety consciousness, reducing workplace accidents and associated expenses.

Employee engagement is a critical factor that significantly influences a dealership’s profitability. From increased productivity and performance to reduced turnover costs and improved customer satisfaction, the impact of engagement extends across various dimensions. By prioritizing employee engagement and implementing strategies to foster a positive work environment, organizations can unlock the full potential of their workforce and drive sustainable profitability.

This presentation delves into the topic of financial stress and its impact on business revenue and growth. Financial stress can have a profound effect on employees' well-being, and this, in turn, can impact their productivity and performance at work. We explore the various ways in which financial stress can impact businesses, including increased absenteeism, higher healthcare costs, and decreased productivity - which together cost American businesses billions of dollars in loss every year.

To mitigate the negative effects of financial stress on businesses, we examine various strategies that employers can adopt including financial wellness benefit offerings such as educational programs, counseling services, and professional support.

The presentation also emphasizes the importance of understanding the root causes of financial stress, such as personal financial difficulties, high levels of debt, and financial illiteracy. By recognizing these causes, employers can better address the issue of financial stress and create a more productive and healthy workplace for their employees.

Coaching plays a crucial role in enhancing the performance of your employees. However, to effectively coach your team, it is essential to identify and address the specific gaps in their skills and knowledge. In this article, we will explore six key strategies that can help managers identify coaching gaps in employees, enabling them to provide targeted and impactful coaching for improved sales performance. These strategies can be used with any customer-facing employee, including salespeople, service advisors, BDC agents, etc.

1. Assessing Metrics: One of the first steps in identifying coaching gaps is to analyze performance metrics. I’ve always said that if you want me to be successful, you need to show me what success looks like. Analyze individual performance data, such as appointments, CSI, and closing ratios. Identify patterns or inconsistencies in their performance compared to the dealership's benchmarks. A significant deviation from the expected performance may indicate areas where coaching is needed.

2. Conducting Skills Assessments: Carry out skills assessments to evaluate your employee’s abilities in various areas. This can involve role-playing scenarios or interactions with customers to assess their communication, objection handling, soft skills, and product knowledge. You can spot-check email communication, read chat transcripts, and listen to phone call recordings. By observing their performance, you can identify specific weaknesses or gaps that need to be addressed through coaching.

3. Soliciting Self-Assessment: One of the advantages of conducting a scorecard review with your employees is the opportunity to solicit their feedback. Encourage employees to participate in identifying their own coaching gaps. Provide them with an open forum to share their strengths and weaknesses. Employees need to participate in their development. This self-reflection can help team members recognize areas where they feel less confident or lack the necessary skills. Their self-assessments can guide coaching conversations and enable a more targeted approach to addressing individual needs. It also builds rapport between management and employees.

4. Analyzing Training Effectiveness: Evaluate the effectiveness of the existing training programs provided to your employees. Said another way, is your training working? Assess whether the training adequately covers the necessary skills and knowledge required in the dealership. Don’t forget the products your team uses. Product knowledge includes the products you sell and service as well as the software and tools you use. Gather feedback from employees on their training experiences and identify any gaps in their training that may hinder their performance. By understanding the limitations of current training programs, you can focus coaching efforts on areas where additional support is needed.

Identifying coaching gaps in an employee is crucial for enhancing their performance and overall results. By using a combination of metrics analysis, skills assessments, observation, self-assessment, and training evaluation, dealership managers can tailor their coaching efforts to address specific gaps and empower their teams to excel.

Evaluate the significant transformations within the DMS Market and the profound effects they have on dealerships, from pricing, contracts, and everything in between.

Key Takeaways from this Training:

• Understand how the DMS Market has changed over the past few years
• Discover what the top players look like today
• How to protect yourself going forward!

Can anyone solve the technician shortage problem in automotive? No. It’s just a fact that there aren’t enough technicians. But rephrase the question. Can you solve the technician problem at your dealership? We think so.

This is going to be the topic our CEO, Jared Hamilton is going to tackle at the 2023 DrivingSales Executive Summit. Like all of Jared’s other keynotes, this one will be based on research, and we could use your help.

The solution to the technician shortage problem at the dealer level requires an understanding of the current technician motivations and mindsets. We want to uncover what it would take to make your dealership the most desired place for technicians to work in your market, giving you the ability to recruit and fill your open technician positions.

This technician study will be focused on four factors we feel can give us the insight we need to be able to tackle the technician shortage problem.

The first factor is how to recruit. We need to understand the motivating factors that would cause technicians to switch from one dealership to another. How can you create an appealing compensation and benefits package?

Next is non-monetary motivation. What are the factors other than compensation that would motivate your techs to perform at a higher level? Can we prioritize these motivations in order to create the most effective environment for recruiting new techs and retaining current ones?

Along with non-monetary motivations, what are the frustrations technicians are having with their current employers? How can you mitigate these frustrations and improve your technician culture?

Finally, compensation. We need to understand the most motivating pay plans. What does the ideal pay structure and compensation level that would encourage technician performance look like? What are the drivers that you could offer that would make a technician take less compensation (i.e. Flexible hours)?

So how can you help? In order for us to uncover these factors, we need technicians to take a survey. All answers are anonymized, so the techs don’t need to worry about employee blowback. Technicians can access the survey here.

You will also want to attend the DrivingSales Executive Summit to see the results. I’m sure there will be lots of conversation around this topic. DSES is at the Cosmopolitan this year. You can learn more here.

You CAN solve the technician problem at your dealership. Please invite your technicians to complete the survey and join us in Las Vegas as we uncover the insights.

In this video, we explore the journey to career advancement and promotion within your organization. Learn how to map out the employee journey and create a clear path to success, starting with the first step of building a strong foundation.

Discover why losers merely train, while winners take the time to develop. In addition, we provide valuable insights and actionable strategies to help you develop a successful employee development program that supports your organization's goals.

Dealers face many challenges today with the pre-owned marketplace – from rising inventory costs and interest rates to declining consumer confidence.

We discuss these challenges and provide insight into what dealers can do today to overcome challenges and capitalize on inventory acquisition, reconditioning, and merchandising opportunities – all while bolstering dealership and consumer relations.