“One of the advantages of a process that I always want to get a client to understand is that solid processes are measurable.”
This is the 6th in a series of 6 articles that will outline the SPoC roadmap:
- Part 1: What is SPoC?
- Part 2: The Beach
- Part 3: Prework Part 1
- Part 4: Prework Part 2
- Part 5: Burn the Boats Part 1
- Part 6: Burn the Boats Part 2
Commitment: Time to burn the boats!!!
EXECUTION STEP 4: STOP MOVING THE GUEST
Now that the F&I team is out of the office and engaged in the activity at the sales desk and in the showroom, the next step toward the goal of a SPoC team is to stop moving the guest and keep the CEMs engaged with the process. This is where the magic happens in teaching and coaching the CEMs in the finance and menu presentation of SPoC sales environment, preparing the CEMs for the transition to a full SPoC selling environment.
There are several advantages to this activity from the CEM’s perspective and for the guest. The F&I team, through their actions, become coaches for the CEMs, culminating in the F&I Team completing the interview process and presenting the menu, so the CEMs can experience quality presentations and learn how to overcome objections.
This step of the process will require some additional energy from the F&I team. For starters, the F&I team needs to complete the interview process at the CEM’s workstation with the guest and the CEM present. The CEM’s role is to simply pay attention and support the F&I team member.
Once the interview process is complete, the F&I team structures the menu either digitally or manually and returns to the CEM’s workstation to present the menu. Again, the CEM’s responsibility is to pay attention, learn and support the F&I team member. What we have witnessed during this activity is frequently – based on the relationship with the CEM – the guest will look to them for approval on specific products. When the CEM agrees that the guest should purchase the products they do.
Also, assuming there has been a solid sales training process completed for the CEMs, they have likely already discussed the advantages of the appropriate products with the guest during the vehicle presentation and vehicle evaluation process. Presenting solutions for issues that have been identified during these process steps is frequently referred to as seed planting.
EXECUTION STEP 5: LET THE SALES TEAM PRESENT THE MENU
After a reasonably short time, approximately 6 to 8 weeks depending on volume and team size, watching, and participating in F&I presentation – the CEMs should begin presenting the menu to the guest independently with oversight.
As a reminder, the first step in the journey to SPoC is appropriate sales training that includes Single Point of Contact training, ancillary product, compliance training, and finally objection handling skills practice.
TRG highly recommends a certification process that validates the CEM has the required skills to present the menu and understands all relevant compliance requirements prior to earning the right to present a menu to a guest. The last thing we want is to have the CEMs practicing on a guest or putting the dealership at risk with the FTC. TRG likes to see leadership and peer reviews of skill sets based on a specific scorecard with a minimum required score to pass. This review process should happen annually for all CEMs.
Going back to the prescribed compensation plans from a previous article, as a reminder, TRG likes to see a compensation format based on three tiers of accomplishment and skill sets that both allow the CEM to achieve the highest level of compensation and allow for accountability in the event the CEM does not meet minimum KPI performance over a 90-day period. A CEM can lose the top tier of the compensation plan until the required performance has been re-established
Scorecards and KPIs should be based on individual dealership objectives. We will discuss KPIs in another section.
EXECUTION STEP 6: DOCUMENT PROCESSORS COMPLETE PAPERWORK & COMPLIANCE REQUIREMENTS
The next step in the process is to shore up the document processing process. This is a critical aspect of SPoC, specifically if your dealership has a practice of immediate deliveries. As soon as the F&I menu presentation has been agreed to the next step is to get all required documentation completed for the delivery process.
There are a couple of process options once all supporting documentation is completed.
- One option is to have the CEM complete the paperwork with the guest. Some dealers like this option because it provides an opportunity for a second pass attempt with the guest to purchase ancillary products that have been declined by the guest during the first presentation.
- Another option is to have the Document Processor complete the paperwork with the guest allowing the CEM to work on getting the vehicle ready for delivery.
- And a third option is to have Technology Specialist complete the paperwork and transition to the delivery of the vehicle once they have finished. We will address this team member’s role in the next section.
It is easy for leaders to fall into a Command-and-Control environment when it comes to completing the paperwork with the guest. Keep the spirit of SPoC in mind when choosing your options listed above.
EXECUTION STEP 7: TECHNOLOGY SPECIALIST
Many leaders may consider the implementation of Technology Specialists as an unnecessary expense. This issue is resolved when re-constructing the CEM and Leadership compensation plans. Depending on the wages in your market, TRG suggests a flat $60 charge per vehicle to the CEM compensation plan calculation as part of the percent to gross to account for this position.
The advantages of a Technology Specialist team (TS) are many. Here are a few:
- TSes manage all in-store deliveries, remote test drives, in-store vehicle presentations and test drives when it is busy, and remote deliveries. This allows the CEMs to stay in front of new guests more frequently and increase their productivity.
- TSes can also complete all the required documentation once the billing has been completed, further freeing up the CEMs to serve more guests.
- TSes can handle all incoming sales and service technology calls, and be dispatched to a guest home for things like garage door pairing and so on.
Key Performance Indicators (KPIs)
One of the advantages of a process that I always want to get a client to understand is that solid processes are measurable. With SPoC establishing KPIs associated with product penetration, gross per vehicle delivered (PVR), finance penetration and more are critical to the success of the process. Compensation plans should reflect these KPIs for the CEMs and the Team Leaders. These KPIs can be sourced from your historic F&I performance or your 20 Group.
There is no reason to expect anything less in terms of productivity from the CEMs in a SPoC environment. Although there will likely be a learning curve, having standards and Key Performance Indicators will expedite and shorten the curve. Your team members must understand what is expected of them and how their performance will impact their compensation plans.
Conclusion
Transforming your business into a contemporary modern retail organization is a critical step towards sustainability in the automotive industry. The consumer continues to change their purchase habits and expectations, and are intolerant of their expectations not being met.
For in-depth details, training, coaching and consultative services regarding Single Point of Contact or how to obtain a Modern Sales Business Philosophy please contact me at the methods below.
Looking forward to hearing from you,
Mike Anderson
The Rikess Group LLC
404-805-5009
For more information, visit our website at www.therikessgroup.com or Schedule a Consultation.
