Dealerships , ,

PROSPECTIVE car buyers were unimpressed with a salesperson’s choice of test drive route that bore no resemblance to their own driving conditions. As a result, of those people who continued on and bought a car from that dealership, about 65 per cent were critical of the salesperson.

It was one relatively small item that could have spelt the difference between four sales and 10 sales. Yet it was only recognised much later when the sales manager noticed declining customer satisfaction scores.

It was not the only issue with the customer satisfaction (CS) scores, but it was the one that could have just as easily have slipped completely under the radar.

According to Fusion Performance Consulting director Craig Rowney, the lack of correctly identifying problems in the lead-up to a car sale can be identified through more thorough training.

In a survey by Fusion Performance Consulting of 3296 new-car customers in Australia, the major area of dissatisfaction was the lack of, or quality of, follow-up.

Fusion said that 67 per cent of customers who enquired by email were dissatisfied with the response.

Further, 36 per cent of customers who enquired by phone and were dissatisfied, also said it was due to a lack of or a poor follow-up.

“The case study here shows how sales consultants gave underwhelming vehicle introductions that combined with inadequate test drives led to customer dissatisfaction and returned poor scores,” Mr Rowney said.

“When Fusion was brought in, we identified several issues that were affe
cting the CS scores. This included the manner in which sales consultants were initially introducing the vehicle to the customers. The introductions were classed as being ‘underwhelming’.”

Mr Rowney said the problem with the test drives was identified as the dealership not offering customers a choice of routes that suited the customers’ needs.

The same test route was used regardless of the customers’ needs and wants.

“These shortfalls were evident to the dealership but to this point management led initiatives had resulted in little improvement,” Mr Rowney said.

“We decided the focus needed to be on helping the managers to ‘coach’ staff rather than ‘manage’ their way to a result.

“Coaching not only provides the tools to drive change but also the understanding and passion to improve in these areas.”

The recommendation by Fusion was to encourage the sales manager to sit down with the sales team and discuss the issue of poor vehicle introductions.

“We encouraged the sales manager to introduce the team to the concept of ‘a minute to win it’, said Mr Rowney.

“This concept calls for the sales consultant to have a pre-prepared 60-second ‘elevator pitch’ that builds significant excitement about the vehicle in the crucial first minute. It builds on the theory of ‘first impressions count’.”

Each sales person was asked to develop a ‘winning minute’ and present it to the other consultants at the weekly sales meeting. The audience would give their opinion of the presentation which would allow the salesperson to build a repertoire of successful ‘winning minute’ dialogues.

“It didn’t take one for the CS scores for this area began to improve on the back of the confidence and passion this process built,” Mr Rowney said.

The test drive issue was solved by the sales manager getting the consultants to offer customers a choice of mapped, pre-determined routes. This allowed the sales staff to use Google Maps to develop a set of routes that could showcase the vehicle in the best light. It also gave customers a choice of different routes and different test periods, from 15 to 30 to 45 minutes.

“It was the simple technique of involving the people who action the decision, in making the decision,” Mr Rowney said.

“The manager now ensures that all test drives are conducted on the pre-determined routes.  As a consequence the dealership’s test drive satisfaction scores are improving.”

Mr Rowney said this coaching strategy was highly effective where data in this case the CS scores can be used to define the problem and so can be relied upon to track improvement.

“The key is to have your people come up with the solutions, as they are the ones who must implement the policies and processes,” he said.

“We recommend that dealers start with simple problem to trial the techniques and then move to harder problems.

“This will not take the place of old fashioned management but will empower employees to solve problems in many areas where old fashioned management may have imposed a less than ideal or sustainable solution.”

By Neil Dowling

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