By Bill Wittenmyer, VP of Sales, Layered Apps & Competitive Accounts, CDK Global
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
1. 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.
2. 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.
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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
About the Author
Bill Wittenmyer has over 25 years of automotive leadership experience and currently serves as a VP of Sales at CDK Global, the leading automotive technology and solutions provider.
