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As the automotive industry becomes increasingly competitive, it is essential for dealerships to maximise every sales opportunity. Here are five actionable tips to ensure your sales team is capturing and converting every prospect that walks through your doors.

Tip 1: Track All Inquiries

It may seem obvious, but tracking all customer inquiries is critical. Often, our consultants visit dealerships and discover numerous prospects who haven’t been logged into the Sales Manager’s control log. Common excuses like “they’re not really serious,” “they aren’t ready to buy,” or “I couldn’t get a name” are classic examples of sales staff making premature judgments. It’s crucial to remember that prospects are potential customers, regardless of how they present themselves initially. People don’t visit dealerships without a purpose. It’s time to eliminate the excuses and ensure every inquiry is tracked and followed up.

Action Steps:

• Implement a robust CRM system to log all customer interactions.
• Train sales staff on the importance of logging every inquiry.
• Regularly audit the inquiry logs to ensure compliance.

Tip 2: Get the Sales Manager Involved

Nothing makes a customer feel more valued than meeting the manager. The “double-intro” approach is particularly effective in today’s market. When the Sales Manager meets the customer, it can positively impact several areas:

• Ensuring the salesperson has properly qualified the customer.
• Checking that a strong rapport is being built.
• Setting the stage for closing the sale later on.
• Reinforcing the value of the dealership.
• Confirming that today is a great time to make a purchase.

Action Steps:

• Establish a protocol where the Sales Manager meets every customer.
• Use this opportunity to gather additional information and reinforce the sales message.
• Monitor and evaluate the effectiveness of this approach through customer feedback and sales data.

Tip 3: Analyze the Results

Capturing traffic information is just the beginning. The real value comes from analyzing the data and using it to improve performance. Management should shift from using traffic data as a “whipping tool” to a coaching tool. For instance, if a salesperson has a lower test-drive ratio than the team average, it’s essential to diagnose the cause. It could be due to poor product knowledge, inadequate customer qualification, weak rapport, or skipping parts of the sales process. Once the issue is identified, set a SMART goal to address it and hold the salesperson accountable for improvement.

Action Steps:

• Regularly review traffic data and identify trends and outliers.
• Conduct one-on-one coaching sessions to address specific performance issues.
• Develop and track SMART goals for continuous improvement.

Tip 4: Reward the Process – Not Just the Outcome

Commission structures often reward the final sale, but it’s equally important to recognize and reward the processes that lead to sales. Elements like test-drives, walk-around appraisals, and closing telephone appointments are crucial parts of the sales process. If we believe that a good sales process consistently yields results, then the process itself should be a focus of our management and reward systems.

Action Steps:

• Design a reward system that recognizes key processes and milestones.
• Provide visibility and recognition for actions that contribute to the sales process.
• Regularly review and adjust the reward system to ensure it aligns with desired behaviors and outcomes.

Tip 5: Be Different from the Other Dealers

Too often, customers encounter the phrase, “When you’re ready to buy, we’ll work out a price for you!” This approach can be off-putting. Just as you would expect a kitchen supplier to give you a price estimate for a new kitchen upfront, car buyers expect transparency. Fleet sales staff provide prices in writing regularly, so why should retail customers be treated differently? If your team is closing 1 in every 4 or 5 customers, they are losing 80% of the time. Trying something different could make a significant positive impact.

Action Steps:

• Provide clear and upfront pricing to all customers.
• Create a unique and engaging customer experience to differentiate your dealership.
• Encourage your team to think creatively and adopt practices that set your dealership apart from the competition.

Conclusion

By implementing these five tips, you can minimize traffic leakage and ensure that your sales team maximizes every opportunity. Tracking all inquiries, involving the Sales Manager, analyzing results, rewarding the process, and differentiating your dealership will lead to improved customer satisfaction and increased sales.

Reflect on your current practices and identify areas for improvement. With dedication and the right strategies, you can transform your dealership into a high-performing sales machine.

Ready to drive your career forward? Enrol in the Queensland Motor Dealer Licensing Full Course today!