StatsPro101

One of the most convoluted measurements in a dealership is Sales Representative performance. It’s easy to determine how many vehicles a Sales Rep has sold, the gross they generate, but are those the best metrics to use? Do these metric determine a great Sales Rep? If one Sales Rep sold 5 vehicles and another Sales Rep sold 10, who is the better Sales Rep? If the first Sales Rep only saw 5 customer and the second Sales Rep saw 25 customers, does this change your answer? The Sales Manager controls gross and the number of units sold does not account for the number of lost opportunities or the total opportunities the Sales Rep had. With the ever-rising cost of lead generation, a dealership cannot afford to ignore total opportunities and the number of unsold customers by sales rep. Do you know how much each Sales Rep is costing you with poor closing ratios? Can your existing system easily produce this data in real time? More importantly is it easy for the Sales Rep to input the data and are there consequences for not entering? Can and do you control floor traffic through a performance based system to maximize each opportunity with the best performing Sales Rep?
With current DMS and other software programs unable to easily capture and report closing ratios we are not able to understand how we are doing in the amount of lost revenue leaving the dealership. This is critical in this day and age when a customer is only visiting 1.4 dealerships before making a buying decision. We cannot waste opportunities with the customer near or in front of us.
With StatsPro 101, the process of capturing every opportunity by the Sales Rep is simple and intuitive. With a few simple clicks on their smartphone app the lead source, customer name, contact info and vehicle of interest and the result of the opportunity is captured. In real time the Sales Rep and Sales Manager can both see their closing ratio performance for the month and year to date overall and by lead source. This allows both individuals to determine the areas of strength and weakness in their process and focus specific training to improve performance. The Sale Manager also has the capability of turning off a Sales Rep’s specific lead type at anytime if they are not at the store’s minimum expectations on closing ratios or they have not been properly trained to take those lead. This ensures the dealership is maximizing every opportunity by pairing the best performing sales rep with the customer opportunity. Would you not want your best floor opportunity Sales Rep greeting every floor up?
What does a 2% increase in closing ratio do for your dealership? Based on 200 total opportunities each month this equates to 4 additional sold units. With an average front and back end gross of $3000 total this would be an additional $12,000 in gross for the month. Over the year, $144,000. This does not even take into account the potential for 4 additional trades for the used department, the increase service revenue from those 4 customers, accessories and parts sales, the safeties on the additional trades, the repeat and referral business etc. This additional gross comes with minimal additional expense, as you are already generating these opportunities, you just need to maximize each one with the right sales rep based on their performance. Do you think you can increase closing ratios just by providing the tool and data to your sales reps and implementing a dealership standard? Will your sales reps be more aware and engaged with customers and aim to improve their performance? Will they compete against the other sales reps for top honors in closing ratios? Now add the increased accountability of your Sales Manager and the specific coaching and training for individual sales reps, plus the ability to direct leads to top performers. Further, as a dealer you can hold your Sales Managers accountable to the store’s standard closing ratios.