By Don Reed, President of DealerPRO Training
In the RV industry, the link between employee retention and customer retention is undeniable and incredibly influential. The overarching goal for your dealership should be crystal clear: cultivate a team of top performers across all departments.
In the sales domain, top performers have mastered the art of cultivating and maintaining relationships, leading to significant repeat business, which is a critical driver of owner retention. These individuals typically enjoy longevity at a dealership, providing them with ample opportunities to repeatedly sell to the same customers and foster relationships that extend to the customers’ families and friends. This ability isn’t just about sales acumen; it reflects a deep commitment to providing exceptional service. Such salespeople are usually among the highest earners at a dealership and have deep-rooted connections within their teams.
Contrast this with the underachievers who struggle to connect with repeat customers, often due to shorter tenures at the dealership and a lack of enthusiasm for prospecting and follow-ups. This disengagement means their customers are more likely to seek out top performers at competing dealerships, taking their business and loyalty. The underachievers’ frustrations often culminate in a high turnover rate as they continuously seek “greener pastures” at other dealerships.
However, the underperformance issue isn’t confined to the sales floor; it’s equally prevalent within the fixed operations of a dealership. Common scenarios in these areas include:
- Service advisors who fail to upsell effectively.
- Technicians who don’t meet productivity targets.
- Parts managers who struggle with profitability and inventory management.
These challenges underscore a widespread issue in many dealerships – a pervasive culture of underachievement that costs dearly in terms of lost revenue and poor customer satisfaction indices (CSI).
Addressing these challenges begins with strategic hiring and training processes. Investing in recruitment and taking the time to vet candidates thoroughly through comprehensive screening and interviews is crucial. Involving multiple evaluators in the hiring process helps select individuals who are likely to perform well. It’s essential to ask whether a potential hire who hasn’t been a top performer elsewhere would suddenly change their stripes under your employ.
Post-hiring, it’s vital to evaluate your team continually. A practical approach is to consider whether you would rehire your current employees if you were making the hiring decision today. If the answer is no, it’s time to look for their replacements immediately.
Thorough training is imperative for those you hire to ensure they understand and can effectively meet their job requirements. Training should cover the skills necessary for the job and the dealership’s specific expectations and processes. This is where programs like DealerPRO Training can make a significant impact, providing tailored training that aligns with dealership goals and customer service standards.
Accountability is another cornerstone of a successful dealership. Employees must be held accountable for their performance, with regular reviews and adjustments as necessary. Performance-based pay plans can significantly motivate employees, aligning their successes directly with the dealership’s profitability.
Moreover, fostering a culture of inclusion and feedback can also boost employee morale and retention. Consider establishing an Employee Council that allows team members from different departments to share ideas and feedback without management’s interference. Such a platform encourages a collaborative environment where employees are empowered to contribute actively to the dealership’s success.
For dealership managers and owners, understanding that the most significant investment you can make is in your people is crucial. By prioritizing and enhancing employee retention, you directly influence customer retention and, ultimately, dealership profitability.
As we forge ahead, let’s remember that the potential for improvement is limitless, but it begins with our commitment to our teams.