Is The Road to the Sale Obsolete? by Jim Ziegler
Is The Road to the Sale Obsolete?
A lot of conversation these days by 'New Age' - 'Next Gen' - car people saying the 'Old School' sales processes are no longer valid with today's consumers.
Just the reference to the term 'Old School Car Guy' is an insult designed to conjure up mental images of an extinct Mastodon being sucked down into the tar pits after eating the last brown shriveled leaves off of the trees. The hidden message in these terms is that you're stupid and we're smart... an intimidation by negative labeling.
In truth, the retail car business is forming sides in the turf wars between the techies and the traditionalists. AND, nobody is giving ground.
I have just returned from an extended 'road trip' of twenty-three cities in fourteen weeks, coast to coast, actually working in dealerships... speaking at major conferences... and performing consultancies. In other words, I am seeing a lot of best practices - what does, and more importantly, what does not work.
To quote myself here: "Average People with great processes will produce incredible results." You can't manage a high-production dealership with an army of 'Prima-Donnas' all doing their own thing without structure or management.
Even though I have embraced technology as part of the sales process; it is not the entire process. Automobile Sales still have to have a structured process from 'Meet and Greet the Customer' through 'Deliver the Vehicle and Follow-Up'.
I don't believe there will ever be a day when technology will entirely replace the human relationship in car sales. The things we do and the words we say are our toolbox.
Time after time, I've experienced dealerships' transformations to much higher volume sales and much higher profitability when the management installed and enforced a "Sales Culture' with defined step-by-step, measurable and accountable sales processes.
Unfortunately, most dealerships have never quantified exactly what they expect sales persons and managers to do and say as they interact with your customers. Oh, we have a vague idea BUT very few managers can tell me their exact process... and very few can honestly say their sales professionals are doing it the way they describe it.
That's why I consider myself extremely fortunate that my career began as a car sales professional and that my first management position was as an F&I Manager. If I owned a dealership today, I would require that all of my Sales Managers had F&I experience. A great F&I Manager is a master of 'The Process' and has to be a precision closer with a stop watch running.
Is it any wonder the sales department is always amazed when the Finance Manager repeatedly 'bumps' the customer after they thought they had all the money. Perhaps, processes and training had something to do with it.
I've always said that F&I Managers have more skills, more schools and more specialized training than anyone in the dealership except the technicians.
Jokingly, I've always said... "Most Sales Managers learned their job by watching somebody who got fired."
We have the tools today to achieve 'super productivity'. There are great CRM programs available to organize, measure, and manage sales and follow up BUT, these programs are only as good as the managers who are responsible for the results. Technology is an enabler and a productivity accelerator but it is only works if competent sales management is on top of it.
So in other words, there is no 'Old School' or 'New School' ... there are only processes that incorporate both. 'The Old Car Dog' that resists and fights everything new, or the 'Next Gen' with no track record who believes they know it all...both have to bend and adapt to 'The School of What Really Works' .
One characteristic shared by virtually every successful dealership in the country is that they have well-defined sales processes and that they require every sales person to follow these processes without exception.
So, the original question was Is The Road to the Sale Obsolete?
The answer is emphatically... NO
AND the answer is also ...YES
The trick is teaching managers to be managers and sales professionals to be students of their profession... and for both to be masters of the processes.
Keep those emails coming... JIM
Comment
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Comment by Mike theCarGuy Correra on November 21, 2011 at 12:19pm -
Spot on, as usual from the Alpha Dog, post Jim! Todays technology has indeed made the consumer more educated but rather than elininate the need for a Professional Salesperson it has actually re-enforced it! I train my staff the with the basics that I was given over 25 years ago:
1) Sell Yourself
2) Sell Your Dealership
3) Sell Your Product
One thing that hasnt been altered by the availabilty of information is that people are primarily walking into a dealership looking NOT for the right car, but the right Person to guide them through a very intimidationg process. No matter how much they have educated themselves about the features, options and even price of their choosen vehicle they NEED someone to help them purchase it. Then, as now a 'good deal' is not a number but it is a feeling you get from working with someone you feel you can trust who works for a good organization and helps you get a car you like at a payment you agree is affordable. My fear for our industry is that the Salesmanship we were taught is a dying art form. As so many great sales people have moved up into Closer, F&I and Desk postions the folks who have followed seem to be of the current generation of entitlement and 'whats in it for me?' I was told that the sale begins when you hear the word no for the 5th time, todays sales people tend to give up at the first one and its a trend I see more and more. Its becoming more and more difficult to find folks who are willing to dig deep and tap into what makes good sales people, if its not as easy as a customer walking up and shoving money in their pocket they might as well just got get unemployment until they get that reality TV show on MTV and finally make the millions that they so deserve. A solid process, applied consistantly with clear and defined steps that can be tracked and measured is the only path to success. My team rattles it off as I walk into the BDC each morning; Meet & Greet, Show & Tell, Demo & Sell! Yes there are many process maps with as many as 15 steps to the sale, I like to keep it simple as possible and heck my list even rhymes so its easy to remember! This business CAN be better than the rep we have aquired over the last few years and with folks like you out there keeping it professional and showing the way we can improve things one deal at a time, one salesperson at a time until selling cars is a Career Choice again and not just a gig that pays a few bucks until something better opens up.
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Comment by Ed Brooks on November 21, 2011 at 9:57am
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I am honored as well even though Brooks is a communist he's become a good friend.
I'm pure Capitalist when it comes to the Car business Jim! I do think this points out a very real New School / Old School difference. While we all agree process is crucial, many New Schoolers would disagree with the notion of "wringing every possible dime" out of a deal.
While that worked in the past, today's customer doesn't just have a back fence to discuss their buying experience over, they have a soapbox and a megaphone in Times Square. The Internet has given them a louder voice than ever before.
So I believe in getting every dime - up to the point that it will impact future traffic. When we grind a customer down not only will they not buy again, they'll tell the world not to buy from us. So as I've said before:
Pigs get fat and hogs get slaughtered - and online reviews are the new slaughterhouse.
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Comment by James A. Ziegler on November 21, 2011 at 9:42am
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I am honored as well even though Brooks is a communist he's become a good friend. .
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Kevin, Thanks so much for including me in that group. Being mentioned in the same breath as Jim and Chris is an honor indeed!
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Thanks Kevin, after 36 years in automotive retail, set a few records, and traveled a lot (really a lot) My goal at this stage of my career is to leave a meaningful legacy to the business. My friend Jackie B. Cooper died March 26th, 2001... and, even though he was probably the greatest trainer in our industry's history, I was the only one to mention his passing in a National Industry Publication.
I wish I had been a better friend and had been around him more than I was, it was a business friendship like Ishare with so many of you...then he was just gone. My intent is to leave an enduring legacy, where, when people mention me 20 or 30 years from now, it's positive and warm.
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Somehow I knew this article would bring out a lot of commentary and reflection. There's a lot of deliberate misinformation being distributed in our industry under the guise of research. People with hidden agendas trying to totally dismantle automotive retail.
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Comment by Larry McMullen on November 19, 2011 at 9:22pm
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Inception, I like that ! Hyundai has had a great interactive touch screen flat panel for years.
It's a little more of a challenge with the brain pollution that most prospects gather from the internet. Where normal process helps to spot the customer. Internet creates objections that are not true and confirmed by 500 buffoons chiming in. On the daily we are overcoming more and more and more and more silliness. Natural Talent and intestinal fortitude to make money and make more, will lead all of us to a means of bringing the basics in with the ever evolving.
Wheels are always going to be round.
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Comment by Jim Hughes on November 19, 2011 at 8:42pm
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I'm with you, Jim. A consistent, high quality sales process is essential. The exciting news is that we see numerous opportunities for enhancing it. For example:
Increase customers’ “Confidence to Buy Today” by continually building:
1. The Value of the Vehicle
- Help customers to FULLY understand the vehicle by showing them videos, comparisons, photos, reviews and much more. Sharing with customers a variety of multi-media on an iPad helps them understand over 2X the amount (than words alone) and provides a much more engaging experience.
2. The Value of Your Dealership
- Show customers a Why Us pdf with the top 5 reasons to buy from you. Compelling bullet points and nice quality photos gets customers to start "leaning into you" early on, thinking that this could be a good dealership to buy from.
3. The Value of the Sales Professional
- Salespeople can build their own "professional brand", positioning themselves as an automotive expert. Creating an electronic evidence manual is one way of showing their individual excellence.
4. The Value of the Manufacturer
- Few customers are shown the rich BMW heritage or how Toyota’s 2 Year FREE ToyotaCare program covers ALL their maintenance costs. These are powerful opportunities for increasing customers’ confidence in your brand.
All of the above VALUE is best built using multi-media on tablets. Words alone do not provide the depth of understanding or richness of the experience. “Old School” foundational principles are important, yet we need to evolve to meet, and exceed, today’s customer expectations.
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Wow! Greatest respect and solid interaction. Some of the elite car people in our industry have commented on this thread AND it's still going. I am excited to see the participation. JIM
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Comment by Brian Benstock on November 19, 2011 at 2:43pm
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Good, solid, human interaction, mixed with a well established sales process is essential in today's market.
Customers expect it, in fact they demand it- Process training is the only way
that we can insure a consistent and memorable experience, cross departmentally,
in our store(s). Build it, teach it, improve it-
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