Most folks think that the way to a sales manager’s heart is through his stomach, but actually it’s through three little letters – CSI. As you know, CSI can determine many things for sales people, sales managers and general management. It could mean bonuses and happiness or it could mean frustration and disaster.
Many accessories programs have gone by the waste-side because of CSI – who hasn’t seen this happen? The common scenario is the sales person promises something can be added to the customer’s vehicle only to discover at the Parts Counter that it either doesn’t exist anymore; he quoted the wrong price; or even worse, it’s added to the We-Owe and it’s never delivered. Next the customer rails the dealership on their survey. The sales manager gets railed. The sales person gets railed - and he vows to never offer another accessory again as long as he sells cars and breathes air – amen!
So next week when you are in your managers’ meeting, you will once again hear: “What can we do to add additional gross and profits?” After all, things are feeling as good as they have in a long time. Your showroom is busy. Sales are moving. Service bays are filled. And your management or principle is looking to get back much of what has been lost over the last 18 months. It’s just like that commercial asks: “Profits? Remember those?” And you will think: accessories.
It seems like such a no brainer, doesn’t it? To those in the Fixed Ops world, selling accessories is just another offering at the Parts Counter. Usually customers come in and ASK YOU for something – very little “selling” is necessary. Any of you with a “Pro-Shop” know this as well. Why is it so difficult to implement accessories selling into variable ops?
The real truth is it’s not difficult at all. After all, sales people LIKE to sell and they LIKE making money. So adding a product to their process that gives customers satisfaction and adds money to the sales person’s pay check should be a no-brainer…should be. Until that sales person, sales manager, or GM remembers their lifelong vow of not offering accessories or anything to that matter that messes up CSI.
So there you are, in the manager’s meeting, wanting to suggest again accessories and you know without some answer to the CSI fear, you aren’t going to get very far. But what if you could suggest you had an idea that would IMPROVE profits AND CSI. Prepare for the sound of the sales manager’s head snapping around to you – SNAP. Yes, suddenly you have the stares of all the managers and the bright light of your dealer is upon you? “Go on.” He says.
Ok – time out. Feel free to tear this article out and have it on the table in front of you – it would be better than notes on your hand. Next try saying the following:
“I noticed the other day that the showroom was really busy, which is awesome! However, as the showroom gets busier and we sell more cars, our customers have a longer wait time to get into the ‘box’. I remember a few years back when we were this busy; wait times were something we would get nicked on in our surveys.” Pause here, let everyone remember and catch up.
“Well what if we could do a better job of keeping the customer busy after they have agreed to the deal?” Keep pace here don’t hesitate. “And what if by keeping them busier, waiting for F&I, we are able to build their excitement by showing them ways to ‘personalize’ their vehicle.” YES, YES, say “Personalize” don’t say even say “accessories” yet – you have them keep going. “According to research I have read, on average customers who personalize their vehicles are not offered to do so 70% of the time.” This is completely true – reference SEMA’s 2009 Market Study. And by now your sales manager is catching on to “personalization” = “accessories” = “death”. But don’t stop – go for the close and here it is:
Say this to your dealer; don’t look at your sales manager yet. “Yes, I am talking about trying once again to offer accessories in the sales process and before we reject it completely, let me make a few commitments to the sales department.
1. We will provide all the proper tools to support the program.
2. We will create a process to communicate to the sales person that the customer is being taken care of after the sale.”
Deep breath here’s the big close: “I know CSI is important and if we do this right we will improve profits and CSI. If the customer is offered the ability to personalize their vehicle here and by doing so it makes the wait time in F&I ‘seem’ shorter, they will be happier and excited. If we create the right process that incentivizes our sales people to JUST let the customer know we offer personalization, they can make more money in their pay check – sales people will be happier.”
Now turn to both the F&I managers and sales managers – “We can also structure the pricing to make sure you both also enjoy the benefits of the sales.” Bang - you just blew the sales managers mind – you just told him you are willing to set the mark ups so HE can get a commission. In one little speech, you have laid the ground work for a successful program. It hits all the high points and clears the way for a real effort - a constructive conversation on pay plans and pricing. CSI is addressed because instead of something that could detract from CSI, accessories can actually enhance CSI – and it does.
Says Thom Workman, General Sales Manager, Duval Ford: “Since we introduced a real accessories process, I am seeing a lot more smiles and excitement on customers’ faces – we have made it a fun part of the process.”
According to Workman, not allowing the customer’s enthusiasm of their purchase to deflate while waiting on F&I is a big part of customer satisfaction. “The difference is the customer’s perception of the length of time of the process,” says Workman. “If we get them interested in something that excites them then the time seems to go by quicker.”
He goes on to say that sales people have realized that occupying the customer during the wait time before F&I gives them the freedom to do delivery preparation.
“I can’t say this is exact science, but since introducing accessories, our F&I numbers are also up and I think a big part of that is continuing to build the enthusiasm for their vehicle,” says Workman.
Patrick Peabody, Finance Manager, at Gary Yeomans Ford agrees. “On my first deal that I presented accessories, my customer purchased $1200 in accessories and an extended warranty. I was shocked. The customer was thrilled and so was I.”
Changing the perception of your dealership management that accessories can enhance CSI will not be a walk in the park. It is hard sometime to change life-long vows. It may take several attempts in the managers meeting to start the process. It may even require a little professional help – ala a consultant, but there are many dealers doing this well and reaping the benefits.
Now I didn’t say your sales manager is going to LOVE you, but you will have a special place in his heart if he sees smiling customers and improved CSI scores – just don’t expect him to tell you that!
