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Alan Ram

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You Lose 40% of Your Customers Each Month. Here’s How to Get Them Back.

Customer choosing to write satisfied face over unhappy face

I want to talk to you about the importance of having someone—in addition to your sales staff—following up with each and every unsold client. That’s right: not instead of, but in addition to! I would also encourage you to do it internally versus farming it out and having someone do it for you; I’ll get to why in a minute.

Who owns the sale: You or your salespeople?

So, I get it. Someone comes into your dealership, and you naturally expect the salesperson to follow up with that individual. Here’s one problem with that: Our data indicates that 39% of customers who visit a dealership won’t return to that dealership because they don’t like the salesperson.

Why don’t they like the salesperson? Could be anything: personality differences; they thought the rep was too tall, too short; maybe they smelled like smoke or made an inappropriate comment. Whatever the reason, the clients decided that they just don’t like the salesperson. But their dislike of your staff doesn’t mean you don’t want to sell them a car—of course, you do!

Personality fit matters.

Here’s the problem. Based on my experience with salespeople, if the salesperson wasn’t necessarily feeling the love with a particular client, they’re probably not going to make that big of an effort to get back in touch. Even if they do reach the client, that person will rarely tell the salesperson “We didn’t like you.” Instead, if the salesperson can, in fact, even reach them, they’ll say …

“We decided to hold off.”

“We’re not going to buy anything right now.”

“We already bought something.”

… even if they didn’t! They won’t tell the salesperson they didn’t like him or her, but they will tell someone else. That’s why I recommend having someone in addition to the salesperson following up each and every guest to your showroom.

How many sales have you lost?

Let’s do the math—

Say you get 600 floor ups per month. Of those, 300 either do buy or can’t buy for whatever reason right off the bat. That leaves you 300 be-back opportunities—or does it? If 39% of those 300 don’t like the salesperson, for whatever reason, he or she has zero chance of getting about 120 of those people back in.

Now let’s imagine a scenario when a well-trained client service specialist or BDC agent calls those clients. Of 120 clients, they should be able to get about 25-35% of them back in. That would be about 35 people showing back up at your dealership who would not have shown up otherwise. And you should have a much higher closing percentage on those 35 than you would on any regular be-back. Why? Because when they come back in, in many cases they buy out of spite. Thirty-five be-backs could very easily translate into 20 plus deals. Those are deals you would not have otherwise had.

The point is this: You have lost sales.

I’m sure that many people have found a new or pre-owned vehicle at your dealership but were turned off by the salesperson to the point where they said, “While I like the vehicle, I’m not buying anything from that guy!” That’s why it’s critical to have someone in addition to salespeople follow-up each and every customer. Many of you will tell me that your managers are the ones making these calls, and that’s great in theory, but not quite as good in reality. Most managers will make one attempt to get someone, leave a message, and then move on. I’ve found that a well-trained business development center representative or Client Service Specialist can be much more persistent and get just as good of results if trained properly. (Also, many times it’s a manager the client didn’t like.)

Train your staff to make the call.

I realize there are outside services that will make these calls for you. In many cases, they make a warm fuzzy call that identifies the objection and then rely on management to call these clients back. I always encourage dealerships to teach their BDC representatives and client service specialists how to handle the call from A to Z (Z being when the buyer shows up at your dealership).

There are fewer moving parts this way, and there tends to be much better communication with management when this role is handled internally. So get your staff ready to follow up on each and every unsold client to ensure that 39% of your possible deals aren’t being mishandled!

Check out in-person training options through NCM Associates, and discover our online platform, NCM OnDemandAlan Ram’s Management by Fire course offers additional tools for your dealership training needs.

About the author

Alan Ram

Alan Ram is the President & Founder of Alan Ram's Proactive Training Solutions. NCM Institute sponsors Alan Ram’s automotive management training event, “Management By Fire!” If you would like more information on how Alan Ram's Proactive Training Solutions can help equip your managers or prospective managers with the tools necessary to drive traffic to your dealership by managing salesperson activity, increase gross profit starting now, and train for real results then contact the NCM Institute at info@ncmassociates.com.

Permanent link to this article: http://blog.ncm20.com/2017/03/you-lose-40-of-your-customers-each-month-heres-how-to-get-them-back/

1 comment

  1. Renee Zapata

    I completely agree. I worked in a BDC call center for the Orr group in the Texarkana area before I became the collections manager for Orr Autosmart. I was able to see all the inventory at every dealership and knew the correct salesperson to greet the customer. The (green pea) as we call them did not always know how to handle the customer and in turn they would walk away instead of driving away in a new car.
    We would start with a call and email to the potential customer; once contact was made we would set the appointment on the quarter hours to get them back in the door. Even if at first they tried to give us the old I’ve already bought or I’ve changed my mind we would offer to give them the highest estimate possible on their trade in. What ever it takes. I think this was a missed opportunity for a lot of the buy here pay here dealers.

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