Research Shows Dealers Looking to Change Sales Processes to Combat Turnover, Boost Profits & Improve Customer SatisfactionMarch 22nd, 2018 by MAXdigital
CHICAGO — March 22, 2018 — MAXDigital, a premium end-to-end software provider for automotive dealers, released new dealer research on the subject of turnover and sales processes. In conjunction with Erickson Research, MAXDigital surveyed nearly 400 dealers across the United States in January 2018. Key findings from the research include:
- Turnover remains a problem for dealers. Nearly 80 percent of dealers in the study said turnover is an issue affecting their business, with 23 percent saying it’s a major issue.
- Poor training and hiring processes contribute to turnover. According to dealers in the survey, inadequate or lack of training, and ineffective hiring processes were the biggest factors leading to turnover. Seven in 10 dealers said their salespeople have told them they don’t have enough training or information.
- Hiring (good) salespeople is hard. Nine out of 10 in the survey said hiring good salespeople is difficult.
- Dealers hire people with no experience. Seventy-six percent of dealers said they’ve hired people without automotive experience. And, 62 percent said they’ve hired people without sales experience of any kind.
- High commission compensation still widespread. Ninety percent of dealers surveyed use high commission compensation, with 42 percent offering no fixed salary at all.
- Dealers are looking to change their sales process.
- Four in 10 dealers said they’re considering changes to their sales process in the next 12 months.
- Moving to a more consultative sales process was the top change considered, followed by adding technology. Seventy percent of dealers in the study believe technology makes salespeople more successful and builds trust and confidence with customers.
- The top drivers for a new sales process are higher close rates and increased customer satisfaction index (CSI) scores. Employee turnover is also a driving factor with more than 50 percent saying a change in sales process would help retain staff.
- Many dealers are looking to adopt a low/no haggle pricing strategy. Four out of 10 in the survey said they are looking to adopt a low/no haggle pricing strategy.