Orem Mazda
Identify the Problem Solvers in your Dealership
When was the last time that you walked onto your showroom and saw that gathering of sales consultants standing around in the "Ring of Despair" and thought to yourself, "I'll bet that's a productive and uplifting conversation?"
Truth is that there are Problem Causers (yes, I know that's not a word) & Problem Solvers in every business in America. Car Dealerships are certainly no exception and I submit that the Problem Causers seem to gravitate toward car dealerships for some uncanny reason.
As a leader, should your valuable time be spent putting out the fires caused by Problem Causers or fostering the growth and goodwill generated by Problem Solvers? The answer seems quite clear at first blush, but the execution of the concept gets a little tricky. We all know that misery loves company so unless you have a sales staff loaded with high performers and the bottom guy on the totem pole is still rocking 18 units per month, you may have a few of these Problem Causers on staff.
I like the saying, "Identify your problems but give your power and energy to solutions."
Many of your most influential employees in your dealership today may not have the word manager in their title. Seek these people out! Interview your management team and your employee base and find out who these non-management leaders are and tell them that you appreciate their efforts. Tell them how much it means to you that they foster an environment of positivity in your business and ask them to continue to spread it throughout the organization. You can spend countless hours finding people doing things wrong, but if you go looking for people doing things right and mentor them and coach them on helping others to do the same, your day will be much more productive and your attitude and mood will certainly benefit.
Be the leader that you would want to have and watch the results. Now it doesn't happen overnight, but it will happen. The "Dope Ring" will start to erode and the Problem Causers will start to drift away toward other dealerships that are much less successful and creative than yours. They will go find the cancerous, negative environment that they crave and your store will be the better for it.
Move some metal!
Orem Mazda
Internet Lead Response, Inspect what you Expect
In my capacity at DrivingSales I get the opportunity to analyze the Internet Lead Response Process of many dealers. The results certainly are varied and surprises pop up almost daily. These surprises are often received less than favorably by the dealer and understandably so. Dealer Principals and General Managers are confident that their process and response times are solid, that is until they see some actual results.
Yesterday I took a random sampling of the last 10 Process Analysis Reports that I prepared for dealers and there are certainly some trends that jump out very quickly. 7 of the 10 were completed while talking to the DP's and GM's at the NADA convention and the remaining 3 were completed just before.
Take a look at some of these statistics:
- Average response time (not including auto responders) ~ 11 hours I think it's important to note that I removed the 4 dealerships that didn't respond at all in order to not completely skew the numbers. Ouch!
- # of responses that contained an answer to a specific question that was asked ~ 1 How are your prospects reacting when they submit a question via your website, a specific question, and the response they get in return is, "Let me know if you have any questions." Hello, Mcfly!?! I don't know about you, but if businesses do not listen to me, they do not get my money.
- # of responses that contained grammatical or spelling errors ~ 6 Now when you look at that number please keep in mind that for the purpose of this post I pulled 10 samples and 4 of them did not respond at all. 10 minus 4 =.....well, you get the point. How important is a first impression? I would be willing to bet that you have sales meetings regarding the importance of the first impression. Did you know that one of the most critical items that a customer judges in order to decide if they are going to eliminate a dealership from consideration is the level of professionalism in that initial email response?
Ok, I'm done discussing the gloom and doom of poor lead handling and the pitfalls that they present to dealerships and the money that it costs them every day. I'm done mentioning that the disconnect that exists between the investment that the dealer makes in new technology tools and digital marketing and the execution that actually takes place in the trenches is bleeding dollars through the back door. I'm also done mentioning that over 95% of car shoppers and buyers today require a professional online experience in order to consider giving a dealership their business.
Good news! The 10 dealers who received these reports (after they stopped fuming) saw a great area of opportunity where they could, kindly and lovingly, coach their teams on the benefit of tightening up these processes. Benefit #1: Job Security!
My advice, take the time to analyze your process and see if there is some opportunity that your dealership may be missing. The ROI on the time you spend doing so will make you smile.
Let's move some metal!
12 Comments
DealerOn
Thanks for sharing Ron. Same results, different day for many dealers.
Valley Imports
What a coincidence! My e-Business Manager and I were just talking about the same thing with our internet team yesterday............the cream rises to the top. Thanks Ron. Jeff Richmond GSM Valley Importrs
DealerKnows Consulting
Good stuff, Ron. I recently presented similar findings at the DMSC in Orlando, after ranking thousands of Internet responses. Suffice it to say, we might have well saved ourselves time and looked at a much smaller sample size to show that dealers need help improving their interaction with customers.
PCG Digital Marketing
Great info Ron. We have found very similar results during our consultations and work with dealers. Many times it is because dealers don't know. When they tell us they have their lead process down, they are shocked when we present information to the contrary. Especially when their departments don't call a lead we submit. Dealers have to allow some of the great trainers out there to hold up the mirror so dealers can sell more cars.
Interactive Financial Marketing Group
Definitely food for thought. One question: was the ~11 hour average just business hours, or within a 24 hour window?
Orem Mazda
Great question Amy. In preparing the findings from the sample I pulled it was business hours only which means the results were actually worse than reported. So glad to see responses to this post from Glenn Pasch, Joe Webb, and Shaun Raines who are all experts that I admire tremendously. And Jeff, good for you for having those discussions! Keep up the good work!
Allen Samuels CDJR
Here is some food for thought... What is your process for monitoring response times and quality of response. While third party (outside eye looking in) advice is great and always welcome we as Managers should be monitoring these issues daily. Though we may never perfect the process of Internet Sales, there is no reason why we should not try! Thank you Ron for your insight!!
DealerSuccess / Virtual Deal
Anyone know of a company that I can hire at a reasonable price to secret shop my digital team weekly/monthly? We have thousands of email addresses to secret shop our competitors every month for the last 10 years but I - and I bet they would appriciate some accountability reporting on my team. Funny, while I was typing this, I contacted my accountability manager and discussed doing this in-house and creating a "Digital Report card" that would grade every lead response in detail and followup including copies of every response and phone call/text attempt for 30 days. Answered my own question :) Love this forum.
Orem Mazda
Hey Joe, Shoot me an email and I'll share the "Quality Lead Response Report Card" that we have. Good to see you on the forum and I hope we'll see you at DSES.
DealerKnows Consulting
Joe - If you have an accountability manager, you're way ahead of the curve. I LOVE it. We offer a couple of services for our clients and others called TaskTeacher and PriceMatrix. PriceMatrix does the detailed mystery shopping of your same brand competitors on a monthly-bi-monthly basis so you know their pricing, response time, online pricing, strategies, rebates using, etc. This way dealers can stay competitive. However, with TaskTeacher, we do much of what you'll be doing with your accountability manager. I PREFER that dealers do this in-house, but it must be done. We monitor how thoroughly their lead handlers/ISMs follow-up long-term with their Internet opportunities. We measure timing, effort, content, responses, and more. Every bit of criteria we hold them accountable for is weighted statistically to arrive at a "grade". Our team and software then writes detailed notes describing any discrepancies, as well as words of encouragement. It then automatically shoots those "grades" and coaching comments back to the ISM, Internet Director, Sales Managers and more. As you embark down this path, a tip that we ended up including into our software...make sure that you keep a historic database so you can notate trends to how they are improving and what specific short-comings each individual has. It takes managing and training to another level. (We call ours "progress reports"). Great job incorporating that into your daily routine. We've learned that it is only when someone realizes they're being constantly monitored (and receiving corresponding grades) that they start following the process well.
Better Car People
Better Car People is great at helping with this over 1500 dealerships to date
Orem Mazda
Can you imagine if Google owned Ford Motor Co? This guy did.
Would this skew how Ford performed in Organic Google Searches? :-)
http://money.msn.com/technology-investment/post.aspx?post=28f26104-c287-434a-b522-39cb610b02c3
No Comments
Orem Mazda
To Spiff or Not to Spiff? That is the Question!
Ok, full disclaimer. I know that this is a polarizing topic in dealerships everywhere. That having been said, without bias to either side, I would like to present an argument for both sides and see where the community lands. Hilary Clinton once said, "Freedom means the right of people to assemble, organize, and debate openly.
So, SPIFF. A dirty word to some dealers and a heavenly gateway to results for others.
Position A: I have spoken with many dealers who take the position that their sales consultants are very well compensated within the confines of their pay plan and should be expected to perform to certain standards without cash bonuses playing a part. One dealer also expressed the very analytical opinion that the additional expense generated in manpower required to track such cash bonuses and assure that they are properly accounted for in payroll for tax purposes was not worth any "lift" they would receive from offering them. Phew, quite a mouthful indeed. And furthermore, (Yes, he had more to say) offering spiffs is like giving your consultants Crack Cocaine! Give it to them one time and they are addicted.
Position B: I heard it said by more than one GM in my NADA General Dealership Management class (Many moons ago) that if they offer up a Saturday morning $100 spiff for the 1st unit sold, oldest unit sold, and for a hat trick, they are guaranteed to have a good day. In fact, many sales consultants will chase that "Cash in Fist" so hard they will stack appointments for Saturday! (Hmm, does that statement belong in position A?) Someone even went so far as to say that he would offer a full commission at the end of the month or a 50% cash spiff on the spot in lieu of said full commission. (I do not advocate that for accounting and payroll legality reasons but it was his store ) Any guesses on how many opted on the "Cash on the spot?"
In conclusion, I have my own thoughts about spiffs but I throw this debate out to the Ultra Intelligent DrivingSales community for a healthy discussion on what your position is......... TO SPIFF OR NOT TO SPIFF?
Let's move some metal!
4 Comments
DrivingSales, LLC
Wow, Ron, what a great topic. I completely understand the sentiment about paying someone already to do their job, so spiffs seem over the top. And once you give a mouse a cookie, he's going to want some milk. However, I think one of the most important things in a leader is knowing what motivates your people. Everyone is motivated differently and it's not uncommon for average salespeople to be strongly motivated by money and short-term accomplishment. In this case, spiffs would seem a viable option. Of course, if your pay plans are set up differently or you know your team doesn't thrive in that setting, spiffs would be obsolete. Great question, Ron!
Orem Mazda
Once again and as usual, Lindsey Auguste is dropping the knowledge. Way to go Lindsey!
The Silent Partner Marketing
As we progress in this digital age, what about "spiffing" people to grow the business digitally? For example, "spiff" a guy at the morning meeting who put an idea out there that worked. "Hey, let's video our sales guys Sunday morning run and put it on YouTube showing what we're like outside of the business." Offer incentives to think outside the box....and watch as the ideas start to flow - even from an older team that's not very tech-savvy.
Orem Mazda
Good stuff from.....Wait for it.........Lincoln! I'm SOLD!
I was so impressed with this article that I just had to share. Technology rocks!
http://autos.yahoo.com/blogs/motoramic/2013-lincoln-mkz-drives-itself-motoramic-tv-163320831.html
Good stuff!
No Comments
Orem Mazda
What are your competitors saying about you?
Here is an interesting question; What are your competitors saying about your dealership to potential customers?
Herbert Hoover was quoted as saying, "Competition is not only the basis of protection to the consumer, but is the incentive to progress."
So here's the challenge. Whether you are a Dealer, a GM, a Sales Manager or a Sales Consultant, take the time to walk into your competitive facing dealerships and mystery shop them. Find out what they do well and what areas need improvement. Pay attention to things like:
* Initial Greeting
* First Impression
* What questions are asked to discover your needs
* Product Knowledge
* Professionalism of the Demonstration
* Pushiness
* And finally, and perhaps the most important, ask them why you should buy from them and why they work at that dealership rather than the one down the street. (Your dealership!)
This exercise will be beneficial regardless of the answers you get or how well the "other guys" perform during your experience. If the sales consultant does an outstanding job and really performs at a level rarely seen at your dealership, HIRE THEM IMMEDIATELY! If they decline, use the experience as a launch pad to make your people better.
If the sales consultant doesn't perform so well during your experience and you can't imagine why anyone ever buys from this clown, use that
as a launch pad to tell your staff how good they are and point out where the competition struggles. Turn their weaknesses into your strengths and the consumers will notice.
Half of the battle is just showing up. Show up in your competitors showrooms and you'll be amazed at the wealth of valuable information you will obtain that can help you improve your dealership.
That's my 2 cents for the day. Move some metal!
4 Comments
DrivingSales, LLC
"Turn their weaknesses into your strengths and the consumers will notice." Brilliant, Ron!
DealerKnows Consulting
When Shaun Raines and I were traveling around the nation on behalf of Chrysler Group LLC, I would always ask the assembled group of dealer owners, operators and managers a simple question in the morning. "What separates your dealership from your competitors?" (Or "why choose you over the next one down the street?") The greater majority of their answers involved the phrase "well, it's because of the customer service we provide." I have a quintessential problem with this so I would follow up with, "Do you hug your customers?" or "Are your handshakes warmer and more friendly?" You hit the nail on the head, Ron. The same antiquated "road to the sale" is on display at almost every dealership and few have a means of standing out above the crowd. It comes down to the professionalism and knowledge of the people, but I know very few dealers who would tell you their sales team really blows any other sales team out of the water. Too many are too similar. It is important for dealers to start recognizing that they're being compared to the dealership down the street AND they are doing very little to separate themselves. What is being said about you, as a dealership, cannot be controlled, but the brand messages you deliver to the public can have a profound impact of how others view you in the first place.
Orem Mazda
Great points Joe! I think it would be fantastic is Dealers and GM's went out to their competitors and actually experienced the process. Many stores pay companies to mystery shop their own stores but to have them get down in the trenches and really strive for improvement would build major value. Their teams would be blown away as well! Can you imagine a DP getting up in sales meeting and reporting the findings that he had from from shopping the guy down the street! Thanks for your comments Joe.
Orem Mazda
A thought as we head into 2013 from the great Napoleon Hill
Every person who wins in any undertaking must be willing to cut all sources of retreat. Only by doing so can one be sure of maintaining that state of mind known as a burning desire to win - essential to success.
Napoleon Hill
No Comments
Orem Mazda
Dear Dealership, "It's GO time!"
What are a prospect’s expectations when they submit a “Request for Contact” on your website?
"Dude, we'll totally sell you a car."
“What’s it gonna take to get you into our dealership today?”
“If I could, would you come down today?”
“I don’t know if the manager will even let me do this…”
“You’re not going to believe this, in fact I think it may be a mistake!”
A dealership’s greatest opportunity for growth in 2012 is online, but old school, traditional tactics will not be tolerated by today’s savvy customers. The shopper in 2012 is a well-informed, tech savvy shopper that demands a certain level of respect and an even higher level of customer service.
Ask yourself this; If 90% of my customers (online shoppers) are being handled by employees that aren’t highly skilled in Digital Marketing and Sales strategies, is that a good formula for my dealership?
Countless hours are spent in dealership meeting rooms across the country with sales managers training their people how to:
* Meet & Greet
* Build Rapport
* Perform a Needs Analysis
* Perform a quality product demo
* Perform a quality demo drive
* Convert a demo drive to a write-up
* Convert a write-up to a close
* Etc, Etc, Etc
Sales managers are highly skilled at this because they have been doing it for years. The Internet is still in its infancy, yet our consumers are demanding that dealers know how they want to be treated and what the “NEW” sales process looks like. Gone are the days of leading the customer down the road to the sale using traditional tactics. Today’s consumer has the road to the sale sitting on their lap in the form of a laptop or Ipad. They are defining the process by awarding the dealerships that are trained to perform for today’s Digital Customer.
Is that your dealership?
No Comments
5 Comments
Roger Laughary
Subaru of Wichita
Great article! Thank you for sharing.
Ron Henson
Orem Mazda
My pleasure Roger. I'm glad you liked it.
Randall Welsh
CIMA Systems
Ah yes, the pity party. Managing many Sales professionals over 32 years in the automotive industry, these gatherings are cancerous. Over the years, I have put the "Gung Ho' of the month award. My idea stems from the book, Gung Ho? By Ken Blanchard/Kevin Bowles and that I have a strong belief in its message. I rolled this out in a few phases. Phase #1, I purchased 5 of these easy read books. I then asked my whole team (Sale-Service-Parts-Office) to read the book and give me their thoughts. In turn, I would reward them with a bonus tchotchke. (You choose the bonus). Phase #2, I introduced the “First Friday” awards meetings, where I bought lunch for the whole store and introduced the “Gung Ho” of the month recipient. The department heads would vote and pick one person, who went out of their way, to do something special. This could range from, helping a customer over and above to picking up trash on the lot, which typically would lay there for weeks before the wind blew it into the parking lot next door. Phase #3, during these meetings, we would announce the winner and present the winner with a $200 gift card and an award they could take home, but must bring back the next day so it could be prominently hung on a wall in the facility. I would also hand out a $50 runner up award. It was amazing what this did to my facility. I had sales people reporting to me, what they did over and above in efforts. Office personnel, who looked to price shop common use items to reduce overhead and lot attendants who would finish cleaning the inventory and weed around my office windows to get attention. It had such a positive effect on reducing negativity and stopping those pity parties while building a “Total Team” effort. Phase #4, anyone who made a mistake or did something negative would be consulted in private using two managers (HR preferred) and myself in the conversation. Never, and I mean never allow reprimand in front of their peers. Randall at rwelsh@cimasystems.NET
Randall Welsh
CIMA Systems
Ah yes, the pity party. Managing many Sales professionals over 32 years in the automotive industry, these gatherings are cancerous. Over the years, I have put the "Gung Ho' of the month award. My idea stems from the book, Gung Ho? By Ken Blanchard/Kevin Bowles and that I have a strong belief in its message. I rolled this out in a few phases. Phase #1, I purchased 5 of these easy read books. I then asked my whole team (Sale-Service-Parts-Office) to read the book and give me their thoughts. In turn, I would reward them with a bonus tchotchke. (You choose the bonus). Phase #2, I introduced the “First Friday” awards meetings, where I bought lunch for the whole store and introduced the “Gung Ho” of the month recipient. The department heads would vote and pick one person, who went out of their way, to do something special. This could range from, helping a customer over and above to picking up trash on the lot, which typically would lay there for weeks before the wind blew it into the parking lot next door. Phase #3, during these meetings, we would announce the winner and present the winner with a $200 gift card and an award they could take home, but must bring back the next day so it could be prominently hung on a wall in the facility. I would also hand out a $50 runner up award. It was amazing what this did to my facility. I had sales people reporting to me, what they did over and above in efforts. Office personnel, who looked to price shop common use items to reduce overhead and lot attendants who would finish cleaning the inventory and weed around my office windows to get attention. It had such a positive effect on reducing negativity and stopping those pity parties while building a “Total Team” effort. Phase #4, anyone who made a mistake or did something negative would be consulted in private using two managers (HR preferred) and myself in the conversation. Never, and I mean never allow reprimand in front of their peers. rwelsh@cimasystems.NET
Ron Henson
Orem Mazda
Fantastic comments Randall. Kudos!