Stop the hemorrhaging of attrition and simultaneously increase your dealership's sales and gross by 50% final (1)
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There is over a 70 percent attrition rate with New Hires in the Automotive Sales industry. Most dealers are suffering from high turnover. And Sales Consultants are suffering from mediocrity. This presentation will show you why this is happening and how to not only fix it but how to literally increase your gross and volume by 50%
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Stop the hemorrhaging of attrition and simultaneously increase your dealership's sales and gross by 50% final (1)
- 1. StoptheHemorrhaging ofAttrition and Simultaneously Increase YourDealership's SalesandGross By50% Sean V. Bradley, CSP, MSG President|Dealer Synergy | Audubon, NJ 267.3139.6776 | seanb@dealersynergy.com @seanvbradley #NADA100
- 3. #NADA100 Attrition Statistics Overallpercentage 3 Turnover average across ALL Dealership positions 39%Workforce Study 2016
- 5. #NADA100 National Attrition Statistics AcrossALLIndustryVerticals 5 18.8% 17.8% 18.4% 18.8% 17% US average 18.1%
- 6. #NADA100 NewHire AttritionStatistics 6 Rate Total turnover percentage 67% Turnover occurring in less than 90 days 40% 40% 67%
- 7. #NADA100 Workforce Turnover Statistics Millennialturnoverrate 7 52% 42% 60% 0 100 50 US average 18.1%
- 12. #NADA100 High Turnover 12 81.9% • Low Customer Experience • Low Customer Satisfaction • Resale rate is down • Employee satisfaction is down
- 14. #NADA100 81.9% 14 DMS Wasted Marketing spend High Turnover Resourceutilizationonthedecline
- 15. #NADA100 High Turnover Wastedmarketingspend 81.9% DMS 15 • Call monitoring/ tracking is down • Not using 3rd party back end tools • Analytical tool usage down • Web tools • Social tools • Video tools
- 16. #NADA100 High Turnover Increasedmissedopportunities 81.9% DMS 16 • Education levels are down • Experience levels are down • Motivation levels are down Can’t see the ball coming
- 17. #NADA100 High Turnover SpendingmoreonoperationsandmakingLESSmoney 81.9% DMS 17 • Prospects • Clients • Staff • New Hires • Dealership
- 19. #NADA100 Whyisthis happening Cultureintheindustry 81.9% DMS 19 • Sales professionals are considered unimportant & disposable • People viewed as a liability or expense
- 20. #NADA100 Whyisthis happening Employeedevelopment 81.9% DMS 20 No clear development path
- 21. #NADA100 Whyisthis happening Entrepreneurialdevelopment 81.9% DMS 21 No training on becoming an entrepreneur
- 22. #NADA100 DMS Whyisthis happening Becomingabusinessowner 22 “Car sales is like owning your own business” problem is, the “road to the sale” and product knowledge does NOT make you a business owner.
- 24. #NADA100 DMS Whyisthis happening Entrepreneurialdevelopment 24 How to use Technology resources Developmental building blocks
- 25. #NADA100 25 Whyisthis happening Nosalestraining • Dealership indoctrination • VPP development • Car sales 101 • Advanced tactics • Product knowledge • Road to the Sale • Processes
- 26. #NADA100 26 Whyisthis happening Noprocesstraining Master your scripts • Inbound scripts • Outbound script • Objections • Rebuttals
- 27. #NADA100 27 Whyisthis happening Limitedallocationofresources • Dealerships spend $768,000 annually on advertising • Average dealership has 10 sales people • Average advertising cost per sales person per month is $6,400 • Average sales person makes less than $4,000 per month • Dealers throw $6,400 in advertising per sales person per month to sale people that are untrained, unskilled and/or unmotivated. The result is an average of 9.6 units per month.
- 28. #NADA100 28 9.6 is the average units sold a month by a sales consultant.
- 29. #NADA100 31 Whyisthis happening Poorutilizationofresources Poor utilization of training resources New Hires CRM Phone Sales Internet Sales/BDC Showroom Sales Management/Leadership Digital Marketing Time Management Organization
- 30. #NADA100 32 Whyisthis happening Outdatedrecruitingprocess No or underdeveloped Employee Value Package
- 32. #NADA100 34 Whyisthis happening Outdatedrecruitingprocess Avoid recruiting in a crisis otherwise you will accept mediocrity
- 33. #NADA100 35 Whyisthis happening Wrongapplicantpool Not utilizing the largest applicant pool Millennials
- 34. #NADA100 36 Whyisthis happening Wrongapplicantpool 80 million eligible candidates 36% of the US workforce 63% have college degrees Technologically savvy Heavy Social media presence
- 35. #NADA100 37
- 36. #NADA100 Howtostop theHemorrhagingAND increasevolumeand profitsby 50%with 3simplesteps. 38
- 37. #NADA100 TheSolution 39 RDT = Profitability R.D.T. Recruit Develop Train
- 38. #NADA100 40 TheSolution Recruiti -candidateprofile Create the Ideal Candidate Profile • Create job descriptions • Identify desired traits/skill sets • Establish mandatory expectations • Provide compensation plan • Develop a schedule Begin with the end in mind
- 39. #NADA100 41 TheSolution Recruiting outlets Place ads in multiple outlets Create variations of job ad • Corporate • Light-hearted • Comical Place in recruiting outlets
- 40. #NADA100 42 TheSolution Recruiting–utilizingvideo Place videos for maximum exposure • Website • Social media • Paid marketing ads • Email marketing
- 41. #NADA100 TheSolution Recruiting–utilizingvideoasaresource 43 Utilize video to screen candidates • Conduct video interviews • Vet candidates
- 42. #NADA100 TheSolution Recruiting-referralsystem 44 Referral incentives • For new hires • For reaching 90 days • For retention over a year
- 43. #NADA100 TheSolution Recruiting-utilizeInterns 45 • Gain valuable work experience • Low cost to organization • Increased manpower levels • Untapped recruiting resource
- 44. #NADA100 TheSolution Develop-Mindset 46 • Personal mission statement • Life goals • Career goals • Income goals Habit 2 Begin with the end in mind
- 45. #NADA100 TheSolution Develop-Mindset 47 • Create Action plans via the CRM • Create a schedule to accomplish goals • Operate based on values not mood • Life discipline • Time management Habit 3 Put first things first
- 46. #NADA100 48 This is a month to month business, perform consistent 1 on 1’s TheSolution Develop-Mentorship
- 47. #NADA100 TheSolution Development–Employeeevolution 81.9% DMS 49 Create a clear development path
- 49. #NADA100 TheSolution Development–Employeeevolution DMS 51 Create a culture of success • Invest in the success of the group • Open conversations • Honest dialogue • Team building
- 50. #NADA100 52 Develop an incentivized pay plan • Basic pay plan • Pro pay plan • Reward based performance TheSolution Development–Payplan
- 51. #NADA100 53 TheSolution Development–Planning • Projecting • Forecasting • Accountability • SWOT • Activity log • Financial calculator Navigational tools
- 56. #NADA100 58 TheSolution Development–Roadmap In order to see results you MUST follow the roadmap • Log weight • Log food intake (calories) • Log fluid in-take • Exercise Lose Weight (Make Money)
- 57. #NADA100 59 TheSolution Development–Roadmap Don’t use the CRM because its not about the Salesperson The solution MUST be about THEM
- 59. #NADA100 61 TheSolution Training–Vendors Take advantage of Vendor training
- 60. #NADA100 62 TheSolution Training–Vendors Utilize State & Local Association Training
- 64. #NADA100 66 TheSolution Training–VirtualTraining The way to transform employees into franchises • Cost effective • Creates Accountability • Certifications impact pay plan • Correlates OEM required training
- 71. StoptheHemorrhaging ofAttrition and Simultaneously Increase YourDealership's SalesandGross By50% Please visit the NADA Pavilion in the Expo Hall for information on accessing electronic versions of this presentation and the accompanying handout materials, and to order the workshop video recording. Sean V. Bradley, CSP, MSG President|Dealer Synergy | Audubon, NJ 267.3139.6776 | seanb@dealersynergy.com @seanvbradley #NADA100