I recently visited a dealership, and while I was in their meeting room, I noticed on their dry erase board an analysis of the previous months UPS. It looked like this:
Total UPS 204
Demos 61 29.9%
Write-ups 49 24.0%
Units Sold 31 15.2%
Customers just wanting information 135 66.2%
We MUST assume that EVERY customer that comes in wants information, and further, they are there for a REASON; they are looking for someone to sell them a CAR or TRUCK. How lame is it for this dealer and his management team to accept these EXCUSES from their salespeople? Who is running this asylum, the inmates?
The very first thing that came to my mind was, “How accurate are these numbers to begin with”? If the sales management accepts this hogwash, then they will accept anything. There is a reason for keeping track of one’s traffic.
Every OPPORTUNITY that walks through the door needs to be logged. What is an OPPORTUNITY? Anyone who represents the opportunity to sell an automobile to (parts and service inquiries need to be further qualified). If a person comes in TODAY, they are an OPPORTUNITY. If we are not successful today at selling them something, and they come in tomorrow, they represent a NEW opportunity, or a BE-BACK. Each time this customer comes back, they represent a new opportunity (depending upon length of time between visits).
Once we have a legitimate OPPORTUNITY, certain activities must be tracked to ascertain the performance of the salesperson and management team. Those activities should include the following:
Interview/Discovery/Qualification Goal 100%
Product Selection with manager Goal 100%
Killer Presentation Goal 80%
Planned Demonstration Goal 75%
Write-up and Negotiations Goal 50%
Sold (customer says YES, I’ll buy) Goal 25%
Delivery Goal 20%
TURNOVER TO A MANAGER GOAL 100%
If you are not accurately logging and tracking your traffic, how in the world do you truly know how many opportunities you could have SOLD, and how many have SLIPPED AWAY?