Tuesday, February 7, 2012

Attributes of Great Salespersons (part 2)

(This is part 2 in a series)

As the leader of your team how do you know at what level an automobile salesperson is performing versus what they are capable of. Simply put there are 4 stages of team member development:

#1…FORMING   #2…STORMING   #3…NORMING   #4…PERFORMING

Let’s analyze each of these…

Stage #1 - FORMING:                                                                                         
An individual who begins as a new salesperson brings a high degree of enthusiasm to his new career mated to a low skill level. This person has a great attitude (you wouldn’t have hired him otherwise) and is like an untrained stallion put into the starting gate in a horse race. This enthusiasm and personality coupled with his high energy level propel him forward, scouring the lot, the showroom, and the dealership for anyone who will hear him.  He listens eagerly in training and devours as much information as you can throw at him. We see this many times when the “green pea” starts out by selling 10+ vehicles in the 1st month. Where his selling skills are low he compensates by using his excitement to get his customers excited and they buy. This new salesperson is having fun so his prospects have fun…it’s contagious. But this stage soon gives way to stage #2. It is imperative that his coach prepare him for what is coming.

Stage #2 - STORMING:                                                                                                    
 
Usually starting in the second or third full month our new salesperson’s enthusiasm starts to diminish.  His skill level is only slightly above the Forming stage.  The “more experienced” salespeople resent how this upstart is embarrassing them. They share with him all the things he does not yet know, all their stories of previous "glory," and “coach” him in how he must become a better “team player.” Because these “more experienced” salespeople "must know more", he changes his methods and begins to employ all their bad habits because he wants to “fit into the team.” His enthusiasm fails him and his sales decline because his skills are not yet developed. Selling is not as easy as he thought it would be…if fact it is hard! This is a dangerous time for a new salesperson. It is why so many new people fail after only 3 - 6 months. It is also the time when he needs support and proper coaching from his leader. With professional, caring coaching his skills will improve and the sales person will enter stage #3.

Stage #3 - NORMING: 
Our salesperson’s career takes a new turn.  His enthusiasm increases as selling becomes easier. There are fewer mistakes because the salesperson invests more time in learning sales skills, prospecting techniques, and, with the help of his coach, develops a written success plan for himself. Sales performance increases and he is making a good living. He has passed the danger point and is a contributing part of the team. This where most sales persons spend the rest of their career: at or above the average (expected) performance level. His coach now has to help him make a choice. He can backslide into stage #2 and start teaching the new salespeople all his bad habits, he can continue at his current level, or he can make the effort to a new phase…one that most salespeople never achieve…and move into stage #4.

Stage #4...PERFORMING:                                                                                                 Performers, top sales persons, have a professional career plan and the discipline to do what is required to execute that plan. These individuals set a high standard for excellence. Every action and interaction is designed to be more, do more, and earn more. They search for and participate in training sessions and seminars to keep their skills sharp and to learn new methods to serve their clients. It is at this point that many professional salespeople will decide to share their considerable knowledge with others through mentoring or becoming coaches(managers). They may assume because of their outstanding performance level that they need no more coaching. However, top performers still need someone to help them stay focused by offering small course corrections to adhere to their career plan.  In truth, fewer than 5% of all salespeople will sacrifice enough, work hard enough and smart enough, and discipline themselves enough to reach stage #4.     

How then, you ask, can I know the developmental stage of my salespeople?

Understand and utilize these keys:
#1 FORMING; High enthusiasm & low skill levels

#2 STORMING;  Low enthusiasm & low skill levels            
                                                          
#3 FORMING; Moderate to high enthusiasm & moderate skill levels

#4 PERFORMING; Great enthusiasm & great skill levels

Understanding the 4 stages of sales team member development will guide coaches in mentoring their salespeople and assist salespeople in knowing what to expect as they progress in their professional sales career.

Happy Motoring,

Larry 

  • PART ONE of this series may be found here.
  • DEALERELITE profile may be found here.
  • LINKEDIN profile may be found here.

Thursday, January 19, 2012

Attributes of Great Salespersons (part 1)

(This is part 1 in a series)

Recently a student asked me what attributes compel an individual to be a great salesperson in the retail automobile business.  As I pondered the question I inquired of the student how he would describe a "Great Salesperson."  He immediately answered, "One whose sales production always leads the board, whose grosses are the highest, who earns the most in commissions and bonuses, and who has the most repeat and referral business."  In order to set up my answer an illustration from the beginning of my career was useful.

I hearkened back to 1980 and a sales veteran named Harold.  Harold had been very successful in a competing dealership across the street here in Savannah for 24 years.  After a disagreement with the owner he made the switch to the same store where I had just been hired.  He sold 24 units that month...I sold only 3.  Being quite perplexed I asked, "Harold, I rush to take care of customers from the time we exit the sales meeting until I leave at night.  I probably talk to 5-6 times more customers than you.  Yet you outsell me by 21 units and you never break a sweat.  What am I doing wrong?"

Harold made this quick observation.  "Larry, you run around here trying to find someone who will buy a car so you can earn a commission.  Consequently, you bounce from one customer to another with little success.  On the other hand, it is my daily goal to get in front of someone for whom I can slow down the process so that I can help him find the right vehicle that works for his situation and fits into his budget.  If I can slow him down...I will sell him a car!"  WOW, I thought, a salesperson who really wants to help his customer get the right vehicle instead of just trying to earn a paycheck.  That must be why he always sold in the mid 20's per month when an average salesperson sold 10 per month.

"So," I asked my student, "What made Harold a great salesperson?"  He replied, "Harold seemed to have the sincere desire to help his customer.  That must have positively affected their relationship and made them want to buy from him."  I added, "Harold had a demeanor that was both helpful and professional.  He gained his customers' confidence by asking questions about their desires and he listened intently to their answers.  Then he tailored his vehicle selection, presentation, and demonstration based on what they wanted to accomplish.  Harold followed this process throughout his career."  My success started after I took his advice.

These lessons are just as true today as they were in 1980.  Customers can easily ascertain your mood and your motivation.  HELP your customers to accomplish their goal(s) and/or handle their problem(s).  Be PROFESSIONAL in your demeanor, your dress, and your attitude.  Follow the successful sales PROCESS.  These attributes will set you apart from your competition, make your customer want to buy from you, and send their friends and family to you as well.

Happy Motoring!

Larry