1. Opportunity Management For Dealership Sales Pp


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  • How Many of You Have Experience in the “Operations” Side of the Car Business….As Well As The “Financial” Side? OK, This Should Be Interesting….Most of You Folks Are Probably All Accustomed To (and Comfortable With) Concentrating on Steps 1, 2, and 3! In the Training and Consulting Arena, We Need To Focus on All Five Steps, but We Try to Really Involve the “Operations Folks” (through a “Guided Discovery” Process) in Steps 4 and 5 (Assuming, Of Course, That You Folks Have Already Effectively Handled the First 3 Steps.) What Do You Think We Find To Generally Be the “Primary” Causes (Step 4)? Here’s an Example! Assume That We’ve Jointly Determined That Dealership Free Service & Policy Expense (All Departments) Is Too High (Which Happens to Be One of the Many Profitability Elements We At NCM Categorize as “Low Hanging Fruit” ( Describe !) ….What Do YOU Think That The “Primary” Causes Would Be?….. GET AUDIENCE INVOLVED !
  • 1. Opportunity Management For Dealership Sales Pp

    2. 2. Too Many Executive Officers, and Far Too Many of Their Department Managers, TODAY , to Understand and Recognize the Importance of Sound Accountability Management
    3. 3. Performance Improvement <ul><li>Identify the Opportunity </li></ul><ul><li>State the “Rule, Guide, or Benchmark” </li></ul><ul><li>Quantify the Opportunity </li></ul><ul><li>Determine Alternative “Causes” </li></ul><ul><li>Develop Alternative “Solutions” </li></ul>
    4. 4. Primary “Causes” <ul><li>Manager(s) didn’t know the Benchmark </li></ul><ul><li>Manager(s) didn’t relate to the “Opportunity” </li></ul><ul><li>Manager(s) didn’t Have a Plan </li></ul><ul><li>Manager(s) didn’t Work the Plan </li></ul><ul><li>Manager(s) didn’t Understand the Expectations </li></ul><ul><li>Manager(s) didn’t Feel Accountable….Or Pay Plan Was “Insensitive” </li></ul><ul><li>Manager(s) didn’t Have a Process </li></ul><ul><li>Manager(s) didn’t Effectively Measure </li></ul><ul><li>Manager(s) didn’t Inspect </li></ul>
    5. 5. Any Business Modeling Exercise Begins with Knowing Where We Are Today! That Means We Must Start by “Measuring What We Intend to Manage”! And That Means That We First Must Define and Understand the Important “ Metrics”
    6. 6. And the most important “Metrics” are…… <ul><li>Opportunities </li></ul><ul><li>To Do Business </li></ul><ul><li>(“OTDB’s) </li></ul>
    7. 7. <ul><li>On November 19, 2004, Dave Anderson published a newsletter directed at Business Owners, titled, </li></ul><ul><li>“ Stop Whining! You Don’t Need More Opportunities!” </li></ul><ul><li>He posed the following questions…….. </li></ul>
    8. 8. <ul><li>On November 19, 2004, Dave Anderson published a newsletter directed at Business Owners, titled, </li></ul><ul><li>“ Stop Whining! You Don’t Need More Opportunities!” </li></ul><ul><li>He posed the following questions…….. </li></ul>
    9. 9. Mr. Anderson goes on to say….. <ul><li>“ Let me go out on a limb and gently get in your face here….. </li></ul><ul><li>You Don’t Need More Opportunities! </li></ul><ul><li>What you need is team that can more proficiently execute the opportunities they already have and are blowing on a daily basis. </li></ul><ul><li>Before you spend another dime to attract new customers, gather your sales team and go through the answers to the following 24 questions: </li></ul>
    10. 10. <ul><li>What are you doing to maximize your current base of customers? </li></ul><ul><li>Do you have an ongoing follow-up system and are people held accountable for executing it? </li></ul><ul><li>Is your pay plan weighted to incentivize selling to repeat customers? </li></ul><ul><li>Do you have any type of owner loyalty program that rewards your best customers or do you treat them the same, or worse, as new customers? </li></ul>
    11. 11. <ul><li>Who answers the incoming phone calls in your business? </li></ul><ul><li>What type of training must your sales team go through before they are allowed to answer the phone? </li></ul><ul><li>Do people in your workplace understand that answering an incoming sales call is a privilege, not a right? </li></ul>
    12. 12. <ul><li>What are your follow-up procedures after a prospect leaves your business without making a purchase? </li></ul><ul><li>Do you just forget about them and “go on to the next one?” </li></ul><ul><li>Do managers hold their team accountable for following up and do you hold your managers accountable for making sure it gets done? </li></ul><ul><li>Do managers get involved in calling back customers or are they spending too much time in their office perched on their widening rear end to roll up their sleeves and do some real work? </li></ul>
    13. 13. <ul><li>What type of initial training do you have in place before a new salesperson is allowed to speak with a prospect? </li></ul><ul><li>Do you have a mentoring program? </li></ul><ul><li>How long is your new employee on-boarding program? </li></ul><ul><li>Do you realize that most new salespeople practice their amateur hour techniques on the customers you're paying so much to attract, and since they do such a poor job, you have to spend more to buy them new guinea pigs? </li></ul>
    14. 14. <ul><li>What is your ongoing training regimen to keep your people sharp? </li></ul><ul><li>Do you realize that if you hold a one-hour per week training meeting that is barely enough to maintain people and it's sure not enough to get them better? </li></ul><ul><li>How often do your salespeople practice? Do your managers practice with them? If not, please understand there are only three reasons for this: (a) Your managers have misplaced priorities; (b) Your managers don't have the skills themselves so they can't teach others; or </li></ul><ul><li>(c) Your managers are just plain lazy. In any event, you have a problem. </li></ul>
    15. 15. <ul><li>Is outside prospecting an option or requirement in your business? </li></ul><ul><li>Are people held accountable for bringing in “X” number of outside prospects each week, or are they sitting back, 100% dependent upon what you buy them? </li></ul>
    16. 16. <ul><li>Is your sales team held accountable for generating referrals from the prospects they do sell? </li></ul><ul><li>Do they even know how to ask? </li></ul><ul><li>Can you determine what percentage of each salesperson's business comes from repeat and referral business? </li></ul><ul><li>If you're not tracking this how can you know for certain you are improving? Have you taught the mental discipline to believe that you cannot consider a customer opportunity “max‘ed out” until you have generated a referral and turned one sale into two? </li></ul>
    17. 17. “ If your management team would spend more time implementing the structure and disciplines to address these 24 points, you could cut your advertising dramatically within a year and never miss a beat. You would also have the higher profit margins and elevated customer satisfaction scores that come with selling more repeat and referral customers.”
    18. 18. “ If you're shaking your head “no way” to these claims, you have been brainwashed and need to shake yourself out of denial. You are an addict: an advertising addict, surrendering to the short term solution of throwing dollars at your problems, rather than the long term discipline it takes to improve your people and, thus, guarantee more profitable growth year after year.”
    19. 19. “ You don't need more opportunities. You need the discipline, focus and leadership to execute and sell the over abundance of prospects pouring through the cracks of your business day in and day out.” Copyright 1999 – 2004 The Dave Anderson Corporation. All Rights Reserved.
    20. 20. Is Dave Anderson “Right” or “Wrong”? <ul><li>Some Client Sales Managers Have Taken Offense at Mr. Anderson’s Remarks…..but these critics are usually “Quickly Shut Down” by Their Peers. </li></ul><ul><li>Travis Snow & Associates and most Client Senior Managers believe that Dave Anderson is “Right on Target” with His Comments. </li></ul>
    21. 21. So, What Must We Do To Respond to Dave Anderson’s Challenge? <ul><li>First, We Must </li></ul><ul><li>Understand the “Metrics” For </li></ul><ul><li>Opportunities To Do Business </li></ul><ul><li>(“OTDB’s”) </li></ul>
    22. 22. First, We Must Understand the “Metrics” For Opportunities To Do Business (“OTDB’s”)
    23. 23. Now Let’s Focus On The “More Advanced” and “More Important” OTDB Metrics!
    24. 24. The “Metrics” We Need To Focus On When Modeling Variable Operations Are The Four (4) “Sources of OTDB’s” <ul><li>Walk-Ins </li></ul><ul><li>Inbound Telephone </li></ul><ul><li>Internet Leads </li></ul><ul><li>Salesperson-Generated (Pro-Active Appointments) </li></ul>
    25. 25. The “Walk-In” OTDB’s <ul><li>Low Closing Ratio (Less Than 17.0%) </li></ul><ul><li>Lower Than Target $PVR’s </li></ul><ul><li>Predominantly Produced By Advertising & Drive-By </li></ul><ul><li>Requires Greater Management Involvement </li></ul><ul><li>Receives Most of the Salespersons’ Focus </li></ul><ul><li>This Source May represent Half our sales, but it Should represent No More Than Half ! </li></ul>
    26. 26. The “Inbound Phone” OTDB’s <ul><li>Rarely Effectively Measured </li></ul><ul><li>More-Rarely Effectively Managed </li></ul><ul><li>Ready to Buy! Decided on Product! Trying to Decide “Where”! </li></ul><ul><li>50% Should Result in “Appointments” </li></ul><ul><li>50% of Appointments Should “Show” </li></ul><ul><li>50% of “Shows” Should “Close” </li></ul><ul><li>200 Calls Should Result in 25 “Closes” </li></ul><ul><li>Should ONLY Be Handled By Those properly trained </li></ul>
    27. 27. The “Internet” OTDB’s <ul><li>Rarely Effectively Measured </li></ul><ul><li>More-Rarely Effectively Managed </li></ul><ul><li>“ Different” Buyers! Requires “Different” Strategies! </li></ul><ul><li>40% Should Result in “Appointments” </li></ul><ul><li>70% of Appointments Should “Show” </li></ul><ul><li>50% of “Shows” Should “Close” </li></ul><ul><li> (Above Metric Standards Will Be Higher for Pre-Owned – Analysis of Metrics Application Will Be Presented Later) </li></ul><ul><li>200 Leads Should Result in At Least 28 “Closes” </li></ul><ul><li>Should ONLY Be Handled By Those properly trained </li></ul>
    28. 28. The “Salesperson Generated” (Pro-Active Appointment) OTDB’s <ul><li>Who Are They? </li></ul><ul><li>A “Few” Will Result From the Previous Sources </li></ul><ul><li>“ Be-Backs” </li></ul><ul><li>Repeat Buyers </li></ul><ul><li>Referrals </li></ul><ul><li>Salespersons’ “Circle of Influence” </li></ul>
    29. 29. “ Salesperson Generated” OTDB’s <ul><li>Should “Close” At 50% </li></ul><ul><li>How Many, Per Salesperson Per Month, Should We Expect? </li></ul><ul><li>Are You An “End-of-Month-Business” Store? When Do You Want to “Focus on Appointments ”? </li></ul><ul><li>Have We “Trained” in this Area of Prospecting? </li></ul><ul><li>Are “Appointments” a Visible Initiative in Your Store? </li></ul><ul><li>200 Pro-Active Appointments “Set” Per Month Should Result In 80 Incremental “Closes”! (90% Confirmed – 90% Show – 50% Close) </li></ul>
    30. 30. So….Once You Understand the “Metrics” and the Performance Standards , You Should Be Able to Effectively ……. <ul><li>“ Model” (Plan the Most Effective Staffing For) Your Sales Departments! </li></ul>
    31. 31. After You Have “Modeled” ( and Effectively Staffed to Your “Model”, It’s Time for…… <ul><li>Execution! </li></ul>
    32. 32. “ Execution” Involves: <ul><li>Planning Your Work, and Working Your Plan! </li></ul><ul><li>(and Having Each Salesperson Do the Same) </li></ul><ul><li>Continually , Clearly Defining and Commun-icating Your Expectations to the Sales Staff! </li></ul><ul><li>Continually , Measuring What You Need to Manage! </li></ul><ul><li>Continually , Inspecting What You Expect! </li></ul><ul><li>Continually , Ensuring that You Have a Well-Trained, Well-Managed Process for Maximizing the Number of OTDB’s , and Capitalizing on Each OTDB! </li></ul>
    33. 33. Does This Sound a Little Bit Like…… <ul><li>Accountability Management? </li></ul>
    34. 34. So Let’s Spend The Remainder of Our Time Talking About….. <ul><li>“ Take-a-Ways” </li></ul>
    35. 35. Business Development Sales Training (Prospecting) <ul><li>Salesperson “Circle of Influence” </li></ul><ul><li>Developing Referrals At, and After, Delivery </li></ul><ul><li>Million Dollar Mail Piece </li></ul><ul><li>Networking </li></ul><ul><li>Utilization of the “NCP” (Non-Current Prospect) Feature Within Your CRM System </li></ul><ul><li>“ Force” The Appointment Process Discipline </li></ul><ul><li>Regular, Consistent, Quality “One-On-Ones” </li></ul>
    36. 36. OTDB Planning, Process, Measurement, and Inspection <ul><li>Inbound Phone Calls and Internet Leads (Handled Only By Trained Sales Specialists?) </li></ul><ul><li>Planning and Tracking of Individual Salesperson Opportunities To Do Business </li></ul><ul><li>Planning and Tracking of Total Dealership Opportunities To Do Business </li></ul><ul><li>Follow-Up of Unsold Prospects </li></ul>
    37. 39. Let’s Now Ask Ourselves….. <ul><li>At What Point Does It Make Sense to Have a Sales Manager Accountable for the Business Development Process? </li></ul><ul><li>At What Point Does It Make Sense to Have a Sales Manager Accountable for the Internet Sales Process? </li></ul><ul><li>At What Point Does It Make Sense to Have a Sales Manager Accountable for the Pre-Owned Vehicle Sales Process? </li></ul>
    38. 40. And Then, Let’s Ask Ourselves….. <ul><li>At What Point Does It Make Sense to Have Dedicated Tele-Marketing Professionals Accountable for Inbound Phone Calls? </li></ul><ul><li>At What Point Does It Make Sense to Have More Than One Internet Sales Consultant? </li></ul><ul><li>At What Point Does It Make Sense to Have a Dedicated Retail Pre-Owned Vehicle Sales Department? </li></ul><ul><li>At What Point Does It Make Sense to Have More Than One CRM Coordinator? </li></ul>
    39. 41. <ul><li>Any </li></ul><ul><li>Questions? </li></ul>