NADA Monthly Dealer Operations Commentary
Back to the Basics — Prospecting 101
Salespeople starting in the car business in the late ê70s or late ê80s began their careers in the midst of an economic downturn. This reality forced them to create their own traffic; relying solely on floor traffic doomed them to finish at the bottom of the board. Pro-active salespeople aggressively pursued new prospects knowing their future depended on finding new business. The same applies today: Salespeople who work pro-actively to generate traffic are able to maintain high sales levels in the midst of economic uncertainty.
To most salespeople, prospecting conjures the impression of phoning strangers with little success. Prospecting undertaken with this mindset will never be effective. Prospecting efforts must be embraced with enthusiasm to maintain a positive track record of success. The following five principles of prospecting, when implemented correctly, will lead to a constant flow of prospects.
àUse Your Business Cards. The least expensive form of advertising a salesperson has is a business card. A salesperson should NEVER be without a good supply of business cards. Rudimentary, maybe, but think of the number of times you have said or heard, I donêt have a card on me.
Business cards should be placed in highly visible areas where people will see them. Your business card should be placed on every company bulletin board, in every bill paid, with every tip left at a restaurant, with each letter mailed, and under each windshield wiper at a grocery store. These mines left in high traffic areas are sure to detonate eventually in the form of a sale.
àFocus on Your Owner Base. When manufacturers created CSI surveys, the intent was to monitor customer satisfaction. Many salespeople conduct their presentations, delivery, and follow-up aiming to achieve a perfect CSI score. In reality, they should aim to achieve perfectly satisfied customers.
àFocusing on the customer base is key to prospecting as it leads to repeat business. Salespeople should not attempt to sell a prospect a car; salespeople should attempt to sell a prospect his or her next five cars. The attempt requires contacting the customer at regular intervals, making those follow-up calls to keep your name in the customerês memory. If you are able to maintain satisfied customers, they will return for their next purchase.
àSeek and Cultivate Referrals. Every salesperson asks people to send along prospective buyers. The tough part is getting referral sources to produce leads. Utilize multiple referral sources to maximize the flow of prospects. Solicit referrals from your owner base, social organizations, churches, schools, family, and friends. Insurance agents, with access to hundreds of potential prospects, can provide valuable referrals, as can bank and credit union branch managers. Continuous contact with referral sources is the only way to get to the prospects they have.
àConduct Daily Prospecting Efforts. As a rule, prospecting efforts donêt generate a high or rapid return. Your objective must be to increase your chances for success in the long term. To do so, make a prospecting plan and engage in four prospecting activities every day. Activities may include cold calls, working the service drive, calling lease renewals, or sending congratulatory notes in response to birth or promotion announcements, etc. Limiting the number of prospecting efforts while maintaining a daily prospecting routine helps you retain your enthusiasm for prospecting, even in the face of rejection. Your enthusiasm, dedication, and patience are key to your prospecting success.
àUnsold Follow-Up. Once you have implemented the previous tools to generate traffic, you must develop your prospects into customers. You must transform potential sales into sales. The principle of unsold follow-up requires that the salesperson maintain contact with a prospect until the sale is consummated. Follow up until they buy.
In todayês fluctuating economic market, the necessity of prospecting cannot be overstated. Salespeople must return to proven techniques of the past to develop a powerful base of customers. This power base will, in turn, create a perpetual stream of business. For all of the details on how to invigorate your sales department, refer to NADAês management publication, A Dealer Guide to Revitalizing Your Prospecting Efforts. To order, call NADA Management Education at (800) 252-NADA,
ext. 2, or (703) 821-7227.
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