Press - dealership facility

I was in a dealership the other day conversing with a few of the team leaders. The discussion was centered on what was (and what was not!) happening in their sales department.

“Let's focus on which policies and procedures are being used in the department,” I said. “Great,” was the answer back from most everybody — except I did notice a “Why are you wasting my time?” look from one of the team leaders.

“Let's start with some of the basics,” I said, “like introducing yourself and asking someone's name.” The why-are-you-wasting-my-time fellow gave me a sour look that said, “I know that.”

“Great,” I said, “Let's talk about the importance of the write-up process and of making sure we always get contact information.”

“I know all about that, too” sneered you-know-who.

“That's even better,” I said. “And I bet you know the importance of always asking for the sale, or finding out what is preventing the purchase today, right?”

His indignant answer was, “You bet! After all, this is pretty basic stuff.” I agreed with him that it was.

Basic stuff: Asking for someone's name, introducing yourself, building rapport, a little fact-finding, getting contact information.

Basic stuff: Giving that prospective client a reason to want to buy from your dealership and from you.

Basic stuff: Explaining all the options you offer to make their purchase a memorable one — all the great reasons they will want to tell all their friends about and all the people they will recommend you to — because you did all the BASIC STUFF!

My know-it-all puffed his chest out and repeated, “I know all this.”

“Yes, we all know all this. But do you do ‘all this basic stuff' with every sale, with every opportunity?” I asked. There was silence. Mr. Why-are-you-wasting-my-time was pretty quiet, too.

You can know it all, but it is worth absolutely nothing if it's not implemented — implemented always, implemented without fail. This is after all, just basic stuff.

Every sale has five basic obstacles: No need, no money, no hurry, no desire, and no trust.

~ Zig Ziglar

How many times have you looked at a fact or some type of information that you just don't believe? This can't be true, no way, no how.

We live in an age of unlimited data collection. We have facts and figures that go on for miles, reasoning for any type of situation, a database fed and stirred with information, simmered until done. We then shape our decisions, sometimes rightly, and other times … hmmm.

At times, some of the best information comes from personal interaction, not preconceived ideas or solutions based on a database. It's not that the information is wrong — most of the time it's spot on — but there has to be more to it.

On a dealer visit recently, I had all my data, facts and figures checked, with reasons for this and solutions for that. At the same time, the dealer was doing the same thing. He knew everything that was going to transpire before I arrived (fair is fair) based on available information, preconceived thoughts based on the data he had.

Here's the rub. We found that we both had the right data; we both had good reasons for why and why not, but our preconceived ideas were a bit off. A shift could not have happened without personal interaction.

The first preconception was our first interaction. I walked in and he said, “You guys are all the same. You come in carrying your briefcases and a cup of coffee.” Maybe I shouldn't have arrived with the coffee (it was early though, and decaf). “Really,” I said. “Really,” he said back.

The data fencing commenced as we probed and jabbed quickly looking for reasons why and why not. Our preconceived ideas and solutions had to be right — we had the data; we had the right stuff!

Within about 15 minutes we both found mutual likes and things we agreed on. “You guys are all the same” was quickly forgotten.

This is good stuff to think about. There are a lot of folks out there (not just dealers) who believe that the data you bring them is a bunch of wasted facts and figures that can't possibly be right. You hear, “We were off a bit that day,” or “My team would never do that.” At the same time you have the data folks saying, “The outcome is correct based on the information.”

The truth of the matter is, we can all be off a little at times, and facts can be skewed. Information is only as good as when it's collected, the moment of the snapshot. But if it happens over and over, there is a pretty good chance that the information is right. And, if it's something you don't see over and over, maybe there was a reason that needs to be taken into account.

This visit had exceptional interaction. We looked at all the information and threw away any preconceived ideas we both might have had. We shared ideas along with the data: our visions for growth and what might be done using all the information that was available.

None of this would have happened without personal interaction along with the data. We should never have cookie-cutter approaches to anything. Our businesses are different; we are different, and the way we look for solutions and improvement can be different — and equally successful.

Matt Appleman runs a very small custom bicycle shop in Minneapolis, specializing in hand-built carbon-fiber bicycle frames. Matt's business may be small, but he has adopted an important sales tool — anticipation — that you can apply at your dealership too.

Matt describes how he builds bicycles like this: “Upon approval of the design, the fun starts for me, and the anticipation begins for you! As the frame is being built, I'll keep you up to date with pictures of the framebuilding process …” There's that word, anticipation. He goes on to describe how in time the bike will be delivered to the new owner. You can bet also that when he sets a delivery date in the future he will stick to that schedule — under promising and over delivering.

Back to our question … How can we harness “anticipation,” and for that matter, Matt's successful process, at a motorcycle dealership?

First, recognize that a customer having to wait for delivery — for sales, service or parts — does not have to be a negative experience for the customer. In fact, ironicaly, waiting for something can make a customer enjoy it even more.

But a customer having to wait can also be a disaster. What's the difference?

Three important steps:

1. Set time expectations up front. Always under promise and over deliver.

2. Take the time to keep your customer updated while they are waiting. Give them interesting facts while they wait. Or even better, with today's easy-to-use smartphones, snap a photo of progress and email it to them.

3. Deliver on time. The only way anticipation continues to be a positive is if in the end the delivery is on time.

Your best customers are the ones who are loyal, repeat buyers. Grow more of them by throwing in a little anticipation.

Stop and consider how much new technology is appearing on today's motorcycles. You know all about ABS brakes, maybe you have even ridden a motorcycle with traction control, but what about bikes with electronic suspension adjustment or a computer screen instead of separate instruments? Or ride by wire, or electronic quick-shift, or a plug-in GPS module to data-log laps around a racetrack? There are motorcycles for sale right now that offer all of that technology, and if the bikes you and your customers are riding today don't offer it, the bikes bought tomorrow will have it and more.

Regardless of whether or not we like all this new motorcycle technology, it is already here, and maybe we can use it to our advantage. Ask your techs how their work changes when repairing these high-tech bikes. They will tell you about plugging the motorcycles into expensive machines that communicate directly from dealership to factory over the Internet. They will tell you about replacing whole components rather than repairing them.

In the end, maybe these high-tech bikes will prove to be bullet-proof, but meanwhile who wants to be the first to find out how much repairs cost when these bikes are no longer under warranty? Also, could uncertainty over future repairs hurt resale prices? Instead, some dealerships are seizing the opportunity to sell many more extended warranties (often officially “service contracts”) to remove any fear of today's high technology turning into tomorrow's high repair bills.

We know that the typical motorcycle salesperson has to ask for the sale seven times to hear a customer say yes. What if there was a salesperson who had to ask for the sale 50 times to hear his first yes?

Meet Jose Jiminez, who for the past year has manned a Southwest Airlines cart in the Ontario, Calif., airport, encouraging travelers to signup for a Southwest Airlines Visa card. Jiminez is not only a salesperson, but is one who can't let rejection get in the way of having a good day. Every day he interacts with several hundred travelers to find eight or 10 willing to signup for a new Visa card. Fourty-nine travelers out of 50 reject his pitch.

Jiminez has clearly learned how to cope with all that rejection, and a powersports salesperson can learn three points from him:

1. It's a numbers game. If you accept going in that it will take multiple “asks” to hear a yes, it makes the rejection less personal and simply part of what's required to get a yes. Jiminez said, “You can't get disappointed when one person says no, because the next person may be the one who says yes.”

2. Stay upbeat and friendly. It shouldn't be the rest of the world's problem if you are personally having a bad day. Your prospects don't need to suffer too. Switch gears when you get to work. As Jiminez points out, upbeat and friendly is part of the job.

3. Don't pre-judge. Ask everyone for the sale. “The person who seems sure to say no will often surprise you and turn out to be the one who will say yes,” Jiminez said. The only way to find out is to ask.

Pass these tips along to your sales team to put rejection into the proper context, and when you are next in the Ontario airport flying on Southwest, stop by and say hello to Jose Jiminez.

According to Mike Kennedy, vice president of North American sales for Harley-Davidson, their 2012 first place ranking for Pied Piper PSI comes after a year of focus on improving the sales process factors measured by Pied Piper PSI.

Q: How do you ensure that all of your retail locations around the world have a coherent branded experience and stay at the top of the game?

A: We're currently focused on a journey to elevate the customer experience. … We're on a multiyear strategy, which is called ‘Retail 20/20' and it's all about delivering a personalized, compelling, premium and truly custom experience to every customer, every day, everywhere and our dealers, of course, are central to delivering that experience. Our philosophy, specifically for Retail 20/20, is to be customer-led, meaning to truly understand customer motivations and barriers—and, ultimately, planning and developing and designing products and experiences with not only customer wants and needs in mind, but their input as well. …

We have over 100 of what we call field representatives that represent the sales area, they represent the marketing area, they represent the financial insurance area, as well as the service area, and they routinely call on those dealerships and coach and council and share best practices. … And over the last year or so, the sales side of that team has been focused on what we call selling factors … things like, Did the salesperson give you a compelling reason to buy or did the sales person offer you a test ride? Did the salesperson use good visuals in the sales presentation? Did they ask you for your name? Those basic elements, and the team has been definitely focused on those elements in coaching and driving the plans with the dealers.

Harley-Davidson dealerships returned to the top ranking in the newly released 2012 Pied Piper Prospect Satisfaction Index (PSI) U.S. Motorcycle Industry Benchmarking Study, which measured dealership treatment of motorcycle shoppers. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success.

BMW and Ducati finished in a tie for second, followed by Triumph and the Victory and Indian brands from Polaris Industries, in a three-way tie for fourth. Industry-wide performance improved substantially from 2011 to 2012, with only three of sixteen motorcycle brands failing to achieve higher scores.

Harley-Davidson dealerships led all brands in 16 different sales activities such as offering test rides, obtaining contact information and asking for the sale. Brand performance varied considerably from brand to brand, with twelve different brands leading at least one sales process category. For example, Ducati, Husqvarna and Triumph dealerships were twice as likely to offer a brochure to shoppers than dealerships selling Suzuki, Honda or Kawasaki. Similarly, Harley-Davidson, BMW and Ducati dealerships were twice as likely to ask for contact information than dealerships selling Husqvarna, MV Augusta or Moto Guzzi.

2012 Pied Piper PSI results for the U.S. motorcycle industry confirm that Harley-Davidson dealerships sell as effectively in 2012 as they did back in 2008 — pre-recession — when motorcycle dealerships nationwide were still enjoying another year of solid sales. But what about the dealerships that sell Honda, Triumph, Kawasaki, or any of the other brands? Many of these dealerships operate in 2012 with half the dealership staff that they had in 2008. How effectively could they possibly sell today compared to 2008?

It took the Harley-Davidson dealerships four years for their Pied Piper PSI score measuring sales effectiveness to climb back up to their 2008 level; a performance that in 2012 leads the industry. In contrast, while the 2012 PSI averages for all other brands trail Harley-Davidson, the improvement for all other brands from 2008 to 2012 is much greater.

That's right, despite of — or maybe because of — the tough times and smaller dealership staffs, dealerships selling the non-Harley-Davidson brands on average sell more effectively in 2012 than they did in 2008. Leading the way, with the most improvement, are the dealer networks selling Husqvarna, Triumph, Aprilia, Yamaha, KTM, Moto Guzzi and Honda.

Some examples? The typical Honda salesperson in 2012 introduced him or herself to a prospect 78 percent of the time and asked for the sale 52 percent of the time. Yes, there is plenty more room for improvement, but in 2008 those figures were 59 percent and 44 percent respectively.

So take a moment to congratulate yourselves on improving how motorcycles are sold at your dealership. … Now back to work pushing those improvements even further.

Harley-Davidson dealers return to the top ranking in Pied Piper Management Co.'s annual study measuring how well dealers treat motorcycle shoppers.

The California-based research company today released results of the 2012 Pied Piper Prospect Satisfaction Index (PSI) U.S. Motorcycle Industry Benchmarking Study.

BMW and Ducati finished in a tie for second, followed by Triumph, Victory and Indian in a three-way tie for fourth. Industry-wide performance improved substantially from 2011 to 2012, with only three of 16 motorcycle brands failing to achieve higher scores.

Harley dealerships led all brands in 16 different sales activities such as offering test rides, obtaining contact information and asking for the sale. Brand performance varied considerably from brand to brand, with 12 different brands leading at least one sales process category. For example, Ducati, Husqvarna and Triumph dealerships were twice as likely to offer a brochure to shoppers than dealerships selling Suzuki, Honda or Kawasaki. Similarly, Harley-Davidson, BMW and Ducati dealerships were twice as likely to ask for contact information than dealerships selling Husqvarna, MV Agusta or Moto Guzzi.

Tim Mayhew, the ringleader of Pashnit Motorcycle Tours in Northern California, reports that business is booming, and this year's tours are nearly all sold out. Demand from repeat customers is so strong that Mayhew has had to increase the number of annual tours just to meet demand from repeat customers. Mayhew's customers clearly have the time of their life on these tours, which they enjoy not only for the motorcycle riding but also for the adventure and the camaraderie.

How can your dealership turn that “time of their life” motorcycle customer experience into dealership revenues and profitability? Play dealership tour guide for your customers, enticing them to use their motorcycles not only for riding but also for adventure and camaraderie.