Henry Kissinger once said that leadership is about “taking someone from where they are to where they haven’t been before.” Although Kissinger wasn’t speaking about the auto industry or working in a dealership, his words perfectly capture a fundamental aspect of sales management. To drive growth, you must continuously develop your sales team—both collectively and individually.
However, a significant challenge many sales managers face is a lack of formal training in coaching techniques. Effective coaching doesn’t happen overnight; it requires specific skills that are not magically acquired with a promotion. Just as Olympic athletes distinguish between good and bad coaches, so too can sales teams benefit from high-quality coaching that fosters improvement and results.
While this article doesn’t aim to provide an exhaustive overview of coaching, there are a few key principles to consider that can make a significant impact.
Coaching is becoming increasingly scientific, relying on well-defined processes and measurable outcomes. To be an effective coach, start by clearly defining the sales processes and calculating key performance indicators (KPIs). This data-driven approach ensures that coaching sessions are grounded in reality and focused on achievable improvements.
One of the most critical aspects of coaching is setting clear goals and creating actionable plans to achieve them. Without defined targets, all efforts can quickly become unfocused and ineffective. An Action Plan serves as a roadmap, guiding your team towards success by breaking down the journey into manageable, achievable steps.
Constructive feedback is another cornerstone of effective coaching—a skill the auto industry has historically struggled with. This is where leadership truly comes into play. Sales Managers must be able to dissect both successes and failures, helping their team members learn and grow from these experiences. Given the high turnover rates in the industry, improving the quality of coaching could save dealerships millions of dollars and ease considerable stress for Sales Managers.
To be a successful coach, a Sales Manager needs several fundamental tools:
Let’s consider a simple example. At ABC Motors, two sales team members, John and Sue, have similar monthly performance on the surface—they both sold 12 vehicles, with 9 from walk-ins and 3 from phone inquiries.
At a glance, their output seems identical. However, a deeper analysis reveals that Sue is less efficient in her sales process compared to John. She handles more prospects but has a lower conversion rate and falls below the department average on all key indicators. This means she has the potential to sell more.
In this scenario, Sue’s manager would use detailed performance data to pinpoint areas for improvement within her sales process. Without such data, a manager could miss valuable insights, potentially wasting inquiries and failing to improve the team’s overall performance.
Regular reports—daily, weekly, and monthly—are vital to starting and sustaining the coaching process. By leveraging data and focusing on measurable outcomes, sales managers can effectively coach their teams to greater success, driving sales and reducing turnover.
Interested in taking your dealership’s performance to the next level? Contact us today for a no-obligation discussion on how data-driven coaching can unlock your team’s full potential. Let’s explore how we can help you lead your sales team to new heights.