Dealer World

What Does Coaching Really Mean?

What Does Coaching Really Mean? Banner

There are all sorts of coaches and trainers in our industry. But there is a difference. Trainers are brought into an organization to teach a specific set of skills – kind of like what Liam Neeson is famous for saying in the movie Taken.” Maybe the trainer is there teaching sales skills, maybe they are teaching how to use a technology or perhaps it is product knowledge. The definition of coaching, however, is much different. According to Wikipedia:

  • “Coaching is a form of development in which an experienced person, called a coach, supports a learner or client in achieving a specific personal or professional goal by providing training and guidance.”

While this may sound similar, it isn’t. Why? Because a coach is someone that is present all of the time. And should be in some form of management role. Most managers don’t take the time to identify or observe their staff. In the automotive space, managers tend to forget about the salesperson that is kicking butt monthly and focus on those that aren’t. Even then, the “coaching” turns into a negative thing as in “if you don’t sell 10 cars per month, we will have to let you go.” Rather than taking the time to “coach,” the feedback has been turned into one that makes the employee feel undesired and puts undue pressure on them.

Coaches should be leaders. Leaders don’t just coach, they do intentional coaching. What does that mean? It means that not only should leaders be looking at their underperformers but also be open to those employees’ feedback. Leaders aren’t all-knowing. Perhaps there is a good reason for those employees to be underperforming. An analogy would be something similar to telling a carpenter to build a house and, when they can’t, firing them. Had the leader listened, he might have learned that the carpenter didn’t have a hammer – or maybe even nails.

On the other side of the coin, leaders shouldn’t forget about those employees that are doing great but rather discuss with them how they can improve. Just because 20-car Freddy is killing it every month doesn’t mean that a leader shouldn’t discuss with Freddy how they can get to the next level and become 25-car Freddy. For leaders, it’s easy to underestimate how much help their employees need for them to achieve MAP (the Minimum Accepted Performance) regardless of whether they are under or overachieving.

Leaders have to get away from simply identifying and coaching underperformers with a negative mindset but rather trust their employees, and collaborate with them as partners in a positive way. Leaders will ALWAYS have time for their employees. Leaders will ALWAYS be willing to listen to their feedback and, most importantly, leaders will ALWAYS be able to identify when THEY are wrong and be willing to be coached by their staff. What’s that famous phrase: A great leader is someone that is a great follower?

Don’t let time stand in the way. Your people are the most important asset your business has. By either ignoring them or throwing negativity at them rather than listening to their challenges as well as how they think those challenges could be fixed, you are doing your business a disservice.

When was the last time that you took to do a leader walk? A leader walk is simply when a leader visits every employee in every department in order to observe, interact and find “in the moment” opportunities to be involved and coach their employees. A great leader doesn’t allow separation between themselves and their staff but rather creates opportunities with which they can be a part of their organization in an open and visible way to not only show appreciation to their staff but also to listen to them, hear their challenges in real-time and discuss with them how – between the employee and the leader – those challenges can be overcome.

Stop staying in the leader/manager “Ivory Tower” hiding behind the one-way glass and get involved with all departments in the organization. Observe and interact with not only employees but also other management peers and customers. Find out what motivates them, develop relationships, recognize and reinforce the right behaviors while offering appreciation, encouragement and seeking input. A leader is a role model and a teacher. By following this advice, you’ll create a better company culture, find your employees overachieving, increase retention and create a better customer experience. Now stop reading and start doing.

-Originally published by Digital Dealer

When Do Conversions Stop?

When Do Conversions Stop? Banner

In the automotive industry, we tend to think about conversions in a funnel-type journey not only within our marketing and sales but also with the outcome of the customer’s journey. We lead them down the path that we want them to follow and hope that they end up in a sale. Am I wrong? Many dealers judge all of their marketing and technology partners’ results on two things:

  1. How much did I spend?
  2. How many cars did I sell?

It’s typically that simple when evaluating performance. A dealer or General Manager looks at their doc sheet at the end of every month and, invariably, they see that they spent $3,000 with a marketing partner but only sold 3 cars for $800 in gross. (or some amount of money less than what they spent.) In my opinion, this is unfair to the vendor. With customers sometimes doing initial research when they are “thinking” about buying a car, the results that a vendor brings in may not show up for 90 days or more until the customer is actually ready to buy. If the Dealer/General Manager is making decisions on a 30-day basis on whether to keep or cut a marketing vendor based on these criteria and with this length of time, they may be doing a disservice.

I get the funnel analogy. Top funnel are people who may want to buy. Bottom funnel are people closer to buying. Dealers tend to ignore, however, the top funnel customers when analyzing vendor partner’s performance. Why? Because they can’t draw a straight line between a “lead” and a sale!

I’m not here to talk about sales attribution, however. Personally, I don’t think “conversions” ever end. I’ve had people drive 60 miles in a dense automotive community to mine just to save $50! That’s insane! What I’m talking about is whether the “sales” conversion is the “final” conversion.

Let me share a story. Presidential nominee and U.S. politician, “Barry Goldwater’s family owned a department store in Phoenix, Arizona. At a party Goldwater was seen in a garish, flowery tuxedo. ‘One thing about owning a store,’ he told the amused guests. ‘You’ve got to wear the things that don’t sell.” *1

Automotive dealerships tend to focus more on the sale than on the after sale. This amazes me seeing as service penetration accounts for a large majority of the revenue that keeps the lights on especially in the current time that we are in. Dealers, however, are still hyper-focused on sales and pay little attention to warranty, recall, parts and regular maintenance revenue.

This industry is NOT the “Field of Dreams!” It’s not “If you build it, they will come.” Do you think a customer that bought a car from you wouldn’t consider taking their vehicle to an independent like Jiffy Lube? You know that they would and, oftentimes do. That’s why the independents are winning the battle for customer-pay regular maintenance. Think that you’ve got a stranglehold on warranty and recall work? What about your competing franchise competition? With many states legislating retail labor rates for warranty service, dealers should be aggressively pursuing these customers.

While I’m not saying don’t pursue sales, I’m simply saying that, in my opinion, dealerships shouldn’t neglect other revenue producing departments in their stores. If you go to almost any dealer’s website, their “service” page either barely exists or is outdated. If, however, you visit Jiffy Lube’s website, it is filled with information, pricing and content informing customers how and why they should choose them. If we return to the story of Mr. Goldwater, the lesson that exists is that dealerships should be wearing the clothes that don’t sell. Namely service-related offerings that are being missed. Whether that’s because customers are choosing Jiffy Lube over the dealership, choosing to have warranty and recall service done by a competitor or dealerships missing out on customers that don’t even know they need it.

Conversions don’t stop at the sale. The customer’s journey doesn’t stop when they buy a car – unless you let it. Smart dealers realize this and continue their customers on a journey that can lead to a lifetime of service and referrals as well as brand and dealership loyalty. That one customer that bought a car from you can easily be transformed from the $800 loser to the $100,000 winner over their lifetime. My advice? Don’t stop at the sale. Nurture the relationship as long as possible while creating as many more as you can. Never stop. This is a long-distance run. Customers will follow if you are a good leader. As they say, the best leaders are also good followers. There is no “final conversion.” It’s a never ending relationship that will benefit your dealership – and a dealership simply needs to say “I do.”

*1 Fadiman & Bernard, Bartlett’s Book of Anecdotes, Page 141