Success Strategy
Achieving Sales Targets

The bane of auto sales managers is Dealership sales targets. In most Dealerships,the Dealer Principle lays-out the targets for the next business year. They are handed over to the sales manager who likely had little input but is now accountable to achieve them.

This is where it gets a bit fuzzy. Some sales managers divide the sales target by the number of sales people and then divide that by twelve months to arrive at individual monthly sales goals. Other managers simply divide them by twelve months and that is the sales team goal. And, finally there are auto and RV sales managers who just hope for the best.

To be truly effective in achieving sales targets and developing a successful sales team, professional sales managers implement the following success steps. Accountability for achieving the sales target still remains with the sales manager. However, in this effective process, responsibility for personal sales moves to the salesperson.

The following three steps to achieving sales targets starts with the sales manager understanding the strengths of each of the sales people on the team. The sales manager recognizes a salesperson new to the car or RV store will generally sell fewer units than someone who has been there for several years. The sales manager factors in referral business, closing strengths, and individual abilities. Next, the sales manager implements the three step process to achieving sales targets - Expectations, Execution, Evaluation.

1) EXPECTATIONS

Through a three meeting sequence individual sales goals are established for the coming year.

a) Meeting Number One

The first meeting could be with the group or on an individual basis. The purpose of the first get-together is to explain you will be scheduling two more meetings to arrive at individual sales goals.

Handle, to your satisfaction, questions that may come up. Conclude with clear instruction that each salesperson is to have a realistic outline of their sales goals for the next meeting. Be sure all salespeople focus on the same end result. That is, if the Dealership sales targets are in units then the salespeople are to present their goals in units per month, if the sales target is in gross sales per unit, then that is what is expected, and so forth.

b) Meeting Number Two

The second meeting must be within three days of the first. The purpose is to review the goals the salesperson mapped out. Discussion focuses on how the numbers were arrived at, how the salesperson sees achieving the goals, what assistance is being sought from management, what training would be beneficial, what strengths the salesperson could share with the team, what the Dealership could do better. In this meeting, the sales manager's role is to listen to what the salesperson is saying, ask for clarification when necessary, and listen again.

This is not the meeting to agree or disagree with what the salesperson has presented. It is not the meeting to offer suggestions or advice. This is the time for the sales manager to really listen to where the salesperson is coming from. Conclude the meeting thanking the salesperson for the input and schedule the third meeting.

Special note, an exception to the above is when a salesperson is completely off with what was expected. Address this as required, refocus on what the purpose of the meeting was and reschedule. If the salesperson does not follow through then you need to consider the future of this person in the Dealership.

c) Meeting Number Three

Since the last meeting you have reviewed all individual sales goals. You have also compared the combined total to the Dealership sales targets. Your role now has two purposes. First, you need to ensure the individual sales goals are realistic. Plus, you need to ensure the combined total meets or exceeds the Dealership's.

In meeting number three, you start with a review of the last meeting, then present the annual sales goal for this salesperson along with an explanation of how it was determined.

Next, you and the salesperson map the total into monthly sales goals. This is not simply dividing the total by twelve. Every Dealership has cycles. Individual monthly sales goals need to reflect the market. These goals are now minimum standard. They are what the sales person is responsible to achieve at minimum.

2) Execution

Armed with monthly sales goals, the sales manager and salesperson now decide on a plan of action. In a car store, similar to RV's, there are buyers who just walk-in. How many of these can a salesperson expect to interact with on a daily, weekly, monthly basis? How many repeat and referral customers should the salesperson anticipate? How many prospecting calls will the salesperson need to make? What about orphan accounts, phone opportunities, internet leads, service customers?

The point is that the sales manager cannot simply say, "Here is your monthly sales targets. Good luck." No, it is the sales manager's responsibility to follow through with each salesperson to develop a strategy on how the monthly goals will be achieved.

3) Evaluation

Evaluation is ongoing. The sales manager monitors each salesperson's daily activity, sold units, gross per deal, number of walk in contacts, number outbound calls, appointments secured, and so forth. Based on the salesperson's success and sales experience, the manager may hold follow-up reviews every other day, weekly, or maybe only once a month. The purpose of the review is to evaluate progress and make necessary adjustments for improvement. The sales manager provides guidance, coaching, and mentoring during these meetings.

The desired outcome is for the salesperson to meet or exceed their monthly sales quota. By doing this consistently, the salesperson, sales team, and Dealership will be successful.

Compared to most other sales environments, RV and auto sales managers are able to provide real time feedback. Sales managers in auto and RV dealerships see each salesperson in action simply by walking the floor and listening. Other sales managers have to schedule travel time with their salespeople in order to evaluate their skills and provide feedback.

Ken Blanchard, author of the One Minute Manager, wrote, "Feedback is the breakfast of champions!" As an auto or RV sales manager, achieving sales targets means your sales team has to know what their sales goals are, they need a game plan to achieve those goals, and, most importantly they need to know how they are doing.

Expectations are the sales goals. Execution is the game plan. Evaluation is the feedback. Combined, they are an effective strategy to achieve sales target success in three easy steps.

Remember: Nothing happens until someone sells something.

Sales Champions Make It Happen!