Digital Dealer - January 2020 - 41

Process & Performance

S A L E S & VA R I A B L E O P S
By
Bill Wittenmyer
VP of Sales, Layered Apps
& Competitive Accounts,
CDK Global

Retail Resolutions
to Drive Results

Strong consumer confidence

and low unemployment signal the
continued demand for vehicles in
2020. However, affordability can still
be an issue with the average sale
price of a new light vehicle hitting over
$37,000.
Overall, the retail outlook is good for
dealers - especially for those who excel at
getting consumers into pre-owned vehicles
when new are cost-prohibitive.
Strong sales numbers depend on a mix
of competent salespeople, data-driven
decisions, and proven best practices. Make
a few key resolutions now so that you can
hit sales goals and drive results throughout
the New Year.

8 Resolutions
to Make in 2020 to
Hit Sales Goals

Manage activities, not results.

Most dealerships are results-driven.
But by the end of the month, results
are already in the past. A better method is
to manage the activities that lead to the
results you want.
Identify the five or six activities that
historically generate sales for your dealerships. These may include outbound calls,
number of appointments, and number of
new opportunities. Ensure your salespeople know the activities that matter, and
then lean on your CRM to monitor those
activities each day.
Daily monitoring is key to catching
problems before they affect your bottom
line.

Zero in on process. You can't simply expect something to happen; you
also have to inspect your processes to
ensure activities are completed effectively.
That's the only way you'll get the results
you want and need for your business.

January 2020

Keep in mind that it's difficult to inspect
processes when you're locked inside your
office or glued to a chair. This year, resolve
to spend time walking the floor every
day to observe what's happening in your
dealership.

Train high-performers. It's easy

to overlook your high performers.
After all, they're putting up great
numbers.
Generally, sales managers spend a lot
of time getting the bottom 10 percent of
salespeople up to the high-performers
level. But a lift of 10 percent for a low
performer selling 10 cars a month nets
you one additional sale. Put more of that
time into a high performer selling 20 cars
a month, and the same lift nets you two
additional sales.
A simple daily check-in with high performers is all you need. Ask how you can
help or better support their efforts. These
are your superstars; you know their baselines. Daily check-ins help you to know
when things are wobbling so you can help
right the ship before it affects sales.

Hire for culture, not just
experience. Experience is

important when hiring sales staff,
but it shouldn't be the only qualification
that counts.
Too many times, dealers look for experience without considering if a person has
the right experience for a particular store.
A successful hire does not only depend
on their skills but also if their personality
matches with your dealership.
In other words, hire for attitude and
train for skills. Before hiring, identify your
store's culture and fundamental values. Let
those insights guide your hiring decisions.

Stop overlooking opportunities. Your CRM and DMS house a ton

of opportunities to increase revenue

and cut operating costs. You just have to
uncover them.
Start with your unclosed leads. How
can you improve execution to win more
of those sales? Check contact reports in
your CRM. The industry benchmark is
seven calls and five emails per lead over
30 days. Consider delegating the majority
of lead follow-up to your BDC; fine-tune
your process where expectations are
falling short.

Examine your digital lead
providers. If your closing ratios

on a provider's internet leads are
below the standard industry benchmark
of seven percent, it's time to decide if you
want to continue that partnership.

Consider equity mining. A

sound equity mining strategy is
the best way to source well-maintained used vehicles without auction and
delivery costs. Pay close attention to your
equity mining process - it's the key to
your success.
A poor process can lead to burning
through your database without results.
Set clear parameters for eligible prospects and write a script that clearly defines what you are asking and the benefits
to your customer.

Finally, examine fundamental
costs. Take a look at areas, such

as floor plan, parts inventory, and
utilities to identify where you can cut
overhead costs.
Overall, 2020 looks bright for dealership sales. Resolve to try a few new strategies and make savvy use of the opportunities you already have, to hit your sales
goals and drive revenue all year long.

For more sales insight, view more articles
here: digitaldealer.com/trending-auto-news/

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Digital Dealer - January 2020

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