NAVIGATING the automotive Industry and its challenges, headwinds and opportunities can be difficult in the best of times, so it should come as no surprise that many dealers can lose focus on automotive finance and this carries unintended consequences into the dealership.
One such consequence is the siloing that occurs between sales teams and finance managers.
In our collective experience with dealers in the network, departments acting independently of each other, in particular between sales teams and finance managers, is a clear trend that has taken root in a considerable number of dealerships.
It is tempting to chalk this up to the pandemic, but it is important to recognise that this was an issue brewing prior to COVID-19.
In fact the onset of this siloing began following the prohibition of flex commissions in 2018 and the changes the automotive finance sector went through as a result.
Overnight we saw an exodus of well-established business managers and with it, the departure of long-tenured skill sets and relationships that helped establish the importance of finance within the sales process.
What followed was a cohort of new business managers who were less experienced at being ‘the glue that held departments together’ (as business managers were described to the author by a sales manager on a recent visit).
Two years later we entered the pandemic which saw new car margins increase dramatically.
The focus on finance in sales teams became less relevant to consultants and was further exacerbated with stock delays making it more difficult for green business managers who had neither the tenure nor experience to navigate this challenging environment.
On top of this came the issue of employee turnover, and not just amongst business managers either. Sales teams have experienced similar churn which has led to a shortage of experienced individuals in dealerships who typically carry the culture of high performance through times of change and disruption.
This has led us to where we are today: a siloed dealer environment where sales and finance are trying to find their footing once again, seeking relevance in each other’s departments for a successful mutual outcome.
Evange Epa
Building a bridge between sales teams and finance managers.
The Angle Edge program recognises that this challenge is a significant issue facing many dealerships in our network. We also understand the value that in-dealer finance brings to the customer experience, and the sales consultant sales process.
We’re also highly aware that without sales teams, business managers cannot be successful.
To tackle this problem head-on and to provide the support for dealerships to thrive, the Angle Edge program shows dealers how to give sales teams the edge by ensuring all channels of the dealership are seamlessly integrated and advocated for in the road to a sale.
We explore topics like ‘Why finance matters to salespeople,’ and ‘How sales teams can signpost and structure their road to a sale’, or even ‘How to talk about finance without talking finance.’
By placing the sales team at the centre of the conversation dealers can build back trust into the finance department and the confidence to refer customers.
Through these business manager and sales manager workshops we touch on ‘How to manage the sales funnel with mutual outcomes and success in mind,’ and ‘How to inspire teams to follow their sales processes to ensure a whole-of-dealership approach is executed with 100 per cent of customers, 100 per cent of the time.’
The secret to success? There is no secret.
The Angle Edge program has helped many of our dealers increase finance penetration from the 10 per cent to the 30’s, 40’s and 50’s. The sessions alone aren’t the magic sauce – the success comes from something that we’ve always known to be true: Dealerships which have collaboration and integration between finance and sales teams will always win.
When finance is included in a sale, we see benefits to both the customer experience and sales consultants. When sales teams advocate for their business managers, conversion is more likely, and we see higher finance penetration.
When sales managers and business managers have open and positive dialogue, we see sustained performance and consistency in great outcomes.
The question then becomes, how do you build this culture? How do you build this internal advocacy? How do you train your business managers to become the glue that holds departments together?
Interdepartmental collaboration and integration within a dealership is the key to increased finance penetration at a time when dealers are looking for profitability across the entire dealership.
Evange Epa is the national business performance manager of Angle Auto Finance
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By Evange Epa
