Paying a spiff for declined services?! Say what?!

Just when you thought you heard it all, some supposed fixed ops guru asks you to pay your advisors a spiff for services that are declined! Well, that guy is me, and yes everyone, you heard right.
 

Before you hit your delete, button, or report me to the men with the white coats, at least hear me out. I was skeptical of this concept myself until I tried it and witnessed how effective and successful it can be. Since then, I have seen similar or even better success with many of my clients.

Effective at what you ask…?!

Answer – Effective at increasing your menu and add-on sales in the service drive!

Requirements:

• An open mind to trying something different
• Willingness to pay a spiff when certain items are sold (by the way, there is a way to do this without it really costing you a cent)
• Willingness to create a few new op-codes and track them
• You agree that tracking declined services is important

Are your advisors currently doing a great job selling menus and add-on sales?
For those who answer no, the #1 reason we hear from managers all the time is, “I can’t even get my advisors to present menu’s and add-on items with any consistency, never mind sell them!”

This is a common issue and there can be several different reasons for it.

There is however one inherent human behavior that applies here, which is…

                                                                                                       “What gets rewarded is what gets done”

At this point, many managers would say, “My advisors get paid a commission, a percentage of whatever they sell”. “So, I already pay them to sell menus and they still don’t do it.”

The concept here is different and is not typically meant to be in place long term.

This concept is all about incentivizing and rewarding a specific behavior, “The behavior of presentation”

The approach of spiffing advisors for documenting when a menu or add-on sale has been declined, has proven to be effective in establishing the “behavior” that ultimately leads to increased sales. 

Think of this as the “Jedi mind trick” for service advisors!

4 important questions that apply to menu and add-on sales:

1. Is it needed? If yes…
2. Did it get offered? If yes…
3. Did it get sold? If no…
4. Did the “decline” get documented?

Think of this another way….
                                                                                                  “The more times we present, the more times we sell”

Here’s an example:

Let’s say this is your current performance on alignment sales:

Current # of alignments presented per month – 60

Current closing % on alignments – 25%

Equals 15 alignments sold per month

After launching new incentive:

Current # of alignments presented per month – 120 (this is actually a conservative gain)

Current closing % on alignments – 25% (note; no change here)

Equals 30 alignments sold per month, and you now gain these additional benefits:

1. The info you need to follow up with the customers that declined

2. The ability to track declines by individual advisor

3. The info you need to focus your sales training on the advisors and specific services where it is needed most

4. Much higher LOF to Menu conversion rate, which equals MORE REVENUE!

5. Customers vehicles are getting the services that are actually needed, vs. the LOF they are telling the advisors they want.

Let’s recap….in the example above, your advisors did not get any better at selling alignments, as their closing percentage didn’t change at all. They got better at presenting them more frequently, and guess what else eventually happens as a result of that……?

That’s right, their presentations begin to improve and so do their closing ratios. Can you say win-win?!

This is a basic tenet of sales. Once again….

                                                                                        “The more times we present, the more times we sell”

Like anything that you have never tried before, there are proven best practices as well as potential pitfalls that are important to learn about. Please feel free to call me, or shoot me an email if you would like some additional details on these, and how an initiative like this can be customized to your specific dealership.

mark@fixedperformance.com