Do You Really Need Product Support PSSRs, or CSAs?
Guest writer Bill Pyles shares all the ways we really do need Product Support SRs or CSAs.
Most larger equipment dealerships have a robust PSSR (Product Support Sales & Service Rep), CSR (Customer Support Representative) or CSA (Customer Support Advisor) that has been in the making for years. This group of Product Support men and women are an integral, value-added, sales and profit generating part of the entire dealer organization.
But maybe you’re a smaller dealer and looking to get to the next tier of the Product Support ladder.
This blog is for you!
The CSA acronym is my personal favorite as I truly believe the words customer support advisor best describes the position. The CSA is the direct link between the dealer and everything Product Support related. A well-trained CSA offers the options that meets the financial and equipment requirements of the customer. Should a failed engine be repaired, rebuilt, or replaced? Is the machine a production machine or a backup? Is the machine scheduled to be sold out of the fleet within the next six months? While the machine is down, are there any other critical areas of the machine that need inspected and repaired before going to failure? Customers get very angry when a leaking final drive went to complete failure, resulting in a machine down situation just after leaving your shop.
If your dealership sells and services tracked type equipment (excavators, dozers and tracked loaders) I know your aware the largest cost of ownership is the undercarriage. The undercarriage is a system into itself. Your CSA should have a complete understanding of the undercarriage system. A simple proper track adjusting discussion with the customer demonstrates a knowledge that will save him dollars and downtime. Getting a customer maximum undercarriage life will save thousands of dollars over the life of the machine.
You’ll also need a good machine population file. It’s tough to forecast sales not knowing your opportunity. A good machine population file will identify the aging, location, and hours on the equipment. By the way a good population file is beneficial to sales, many machines are removed from the fleet after so years and hours. New sales opportunities!
Typically, the 80/20 rule is the typical CSA customer list. The top 20 customers assigned to a CSA typically take of 80 percent of their time and resources. Dealers will need to develop the unassigned fleet customers and the “middle segment”, customers who have your equipment but do not purchase any parts or services.
You’ll need an annual CSA meeting to discuss trends, sales forecast, changes in the market and to celebrate over and above accomplishments (just picture your last whole goods sales meeting). Is the GM or dealer principle attending? The GM and or dealer principle must make an appearance to show support and comment on the current business environment and congratulate the high performing CSA’s. A well-developed CSA program will give you much to celebrate!
But who does the CSA report to? The dealer principle?
I once worked for a regional vice president who upon returning from an executive meeting was convinced, we should terminate the CSA program, all of it, today, now.
This executive meeting was held during one of the severe cyclic downturns in heavy equipment sales. Dealers were struggling to survive and expense control was job one. Elimination of the CSA program would save accelerating expense dollars. His rational was simple, if severely flawed. We have a good product and if a customer experiences a failure, he will simply pick up the phone and call us. And with our new snazzy web site, the customer will simply log on and make arrangements for needed parts and or service. After thinking this over maybe for 60 seconds I countered with the elimination of the whole goods salesmen using the exact same logic; we sell good equipment and if a customer needs a new machine or a long-term rental, he will simply pick up the phone and call us. Fortunately, neither plan was put into action, we survived the downturn and came out stronger on the other end.
The sales manager? Maybe not a good choice as the sales manager has enough on his plate with inventory, inventory aging, salesmen, OEM programs, order windows, financing and fleet deals. A CSA reporting to the sales manager may turn into a delivery driver for a bucket, gathering hours for a trade in or running out docs to be signed.
The parts manager? Maybe not a good idea as most part managers are outstanding at managing their inventory, over the counter fill, stock orders, counter activity but not managing a parts and service sales person.
The service manager? Not here either. Service managers have many balls in the air dealing with shop service, field service, training, warranty, the pothole in the parking lot (a little sarcasm) OEM’s and technicians. Not much time to manage a CSA.
A CSA without a direct supervisor soon becomes a “floater” or Product Support orphan employee.
A better solution would be a Product Support Sales Manager or a position with a similar title. This person would have 100% accountability for a successful CSA program. He or she would work closely with parts and service management in writing CSA goals that are in alignment with company goals. The Product Support Sales Manager would do the CSA’s bi-annual and annual performance reviews as well administer incentive plans and salary increases, create annual sales forecasts and work closely with the OEM representatives regarding OEM Product Support programs.
A Product Support Sales Manager is the mentor, manager, and coach in developing a CSA. CSA’s must have a career plan with defined goals in sales and service activity. I worked at a dealer who had an outstanding Product Support Sales Manager, super high energy. I truly believed this man could inspire CSA’s to sell snow plows in Miami Florida!
A CSA MUST participate in technical training for the products the dealer represents as well as management level training in negotiating skills and people skills. A successful CSA will have a basic understanding of oil sampling, why on time PM’s are important and an excellent understanding of repair, rebuild or replace options. These skills development can be better managed by a qualified Product Support Manager who reports directly to the dealer principle.
CSA Vehicle: Car or Pickup Truck.
I’ve had responsibility for CSA’s and have experience with both the CSA company vehicle being a car or truck; pros and cons for both. If you give your CSA a car allowance and he or she uses their personal vehicle, you’ll soon find the car parked and a company truck “borrowed” for the day to run out some rebuild pumps and a cylinder or two. Car allowance or not, the CSA will be reluctant to damage or have spilled oil in the trunk or floor. In my opinion a pickup truck sporting the dealer’s name and logo is your best choice. Graphics today look sharp on the job site and rolling down the highway. And when on site, if there is something that the CSA can help out by running something back to the shop, it will not be a problem. However, you’ll want to avoid your newly minted CSA into becoming a parts runner. I do suggest that when a CSA plans his day, he or she will check with will call to see if there are some parts he can bring out and check the service WIP (Work In Process) to see if the customers he’s calling on today have any equipment in the shop and get the status, the customer will ask, be prepared!
CSA Salary & Expenses
CSA salary and expenses are usually split 50/50 between the parts and service departments. I’ve heard arguments that a CSA will sell more parts than service and parts should pay more of the percentage. Most CSA programs are salary and commission based. Another responsibility of the Product Support Sales Manager.
But keep in mind, a dealer’s best margin comes from labor sales. It’s the responsibility of the Product Support Sales Manager to steer the CSA into higher labor sales. If a customer needs a reman engine and the CSA provides a quote for the reman engine, the labor to do the remove and install must be included. I think Michael Jordan once said he missed every shot he did not take. The same applies here; don’t quote the labor and you surely will not get it. Your competitors may be quoting the same reman engine AND the labor. The customer likes the turnkey repair and asks your competitor when they can start. Always provide a professional estimate/quote and follow up with the customer. Add value and close the deal!
Customer Support ADVISOR
When I was a newly minted Product Support Sales Manager, I thoroughly enjoyed customer visits and scheduled customer meetings. I’d wait for an opportunity to ask the customer if a recent issue, wrong parts, late service call, etc. he brought up was discussed with his CSA (I did not use the CSA’s name). If the customer replied “oh you mean the guy who measures our tracks” then we’ve failed to make the ADVISOR relationship with the customer. A good gap we need to close. CSA’s need to listen when the customer talks and suggest solutions to equipment problems. I know we’re providing value when the customer asks the CSA “what do you think?” When the customer says those words, the rest is up to you to deliver the outstanding Product Support that makes you the “go-to” dealer!
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Positioning: Who Are You For?
Positioning: Who Are You For?
Guest blogger Alex Kraft discusses positioning in today’s blog, with the important question of who you are positioning yourself for? Who is your message meant to target? Are you a partner to your customers?
When you work for an established company, there are certain things that get taken for granted. Customers in the market know your brand and they’ve experienced your products. Opinions are formed based on experience. For young companies, the art of positioning becomes incredibly important.
Wikipedia defines ‘positioning’ as ‘the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors”. How do potential customers perceive your product when they haven’t experienced it and it’s not established? What I’ve learned over the past 18 months is: words matter. It’s remarkable how certain words trigger different responses and can create opportunities or worse, close doors in your face.
One of the major challenges with positioning is that everyone seems to use the same words, regardless of whether they are accurate or not. As I’ve written before on this site, Heave in its simplest form allows dealers/sales reps to quote contractors equipment (for rent or sale) easily on their mobile device. I’m very proud of what we’ve built so far and couldn’t wait to tell the industry….so terms like ‘platform’, ‘marketplace’, ‘e-commerce’, found their way into our positioning. The problem is that every tech company says that they are a platform/marketplace/e-commerce solution. The result is that you get drowned out amongst the crowd and no one remembers anything. Even worse, a customer will just assume your product is the same as one that they’ve maybe had a poor experience with, because of that similar description (without even trying it!).
For equipment dealers, it’s similar. Pick a dealer, any dealer. Don’t tell me who they are, let me guess: do they have the ’best’ or ‘quality equipment’, with ‘THE BEST SERVICE’? Are they ‘customer first’?
Are they a ‘partner’? I remember when I started as a Volvo salesman and attended a factory training session. Naturally I wanted to learn the areas where we had a competitive advantage, something tangible. One thing that I left armed with was Volvo’s superior fuel economy compared to the competition. Unfortunately for me, I was flipping through a Construction Equipment Guide the next week and I see ads for Case promising the ‘best fuel economy in the industry’, same as CAT, Deere, and Komatsu. Now Volvo is just another brand promising the same thing as everyone else. I had to go back to telling customers we just had the ‘best service’….
With Heave, we created something new and started with a blank slate. I became frustrated early on as we met people in the industry. ‘Why don’t they get it?’, I would ask one of my partners. It seemed so simple to me, but I lived it every waking moment. The more I read and researched other companies, the more I came to understand how important positioning is, and how it can set companies apart. I didn’t realize the skill involved in articulating an idea concisely with an economy of words. Once I had an appreciation for the nuance involved, we began tweaking our positioning. As we met with clients you could tell that it was resonating more, and we were getting closer. The final ‘aha’ moment for me was something that I believe every dealer/OEM can also learn from.
Positioning goes together with identifying a target market. A mistake that I know well is not recognizing your ideal customer. In the early days of Heave, I was afraid that if there were 100 potential customers, we needed to appeal to all 100. We couldn’t afford to have a smaller potential pool of customers I thought. Thankfully, I came across a sales trainer named Josh Braun. Josh’s content opened my eyes to how successful salespeople don’t try to sell or pitch to everyone; they focus their efforts on those who fit the solution. It finally clicked for me. Heave is not for the 15-20- year veteran salesperson who has the same 15 accounts for the past 10 years. Heave is for the younger, inexperienced, hungry sales reps who are new(er) to a territory and building their book of business. Have you ever noticed that those who say that “it’s a relationship business” are the ones who’ve had the relationships for 20 years? That saying is code for “this is MY customer, go find someone else!” This exercise was incredibly liberating for our team because it brought clarity to our mission and removed a ton of pressure. Now we weren’t wasting time talking to those who weren’t a good fit for our product. Do I believe that Heave could help that 15-year veteran salesperson? Of course, but why push a boulder uphill? Go talk to the 50,000 equipment salespeople in the US who are tired of cold calling offices and jobsites, that keep showing up and never get past the gatekeeper. Their manager offers solace by telling them, “Don’t worry, it’s just part of it. It took me 24 months to get my first crack at quoting Contracting. Now they buy 5 machines per year from us.” That is our ideal user and our positioning followed. Now we were speaking directly to them.
While equipment dealers aren’t starting with a blank slate, there is opportunity to stand out since everyone has been using the same terms since the 1960s. Don’t make the mistake of just copying the competition. You don’t have the same resources as the competition, and you don’t get credit for the ideas if you just are copying what someone else does. Who are the customers that your competition doesn’t serve? Maybe this fresh positioning could be tied to embracing the technology driven changes occurring in the industry? Maybe your positioning can be focused more on certain products or customer segments? On second thought, consistency is your friend, and you can’t go wrong with ‘We take customers to lunch, sign paper contracts, and we stock a lot of parts.”
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
It Is Time to Fail Faster
It Is Time to Fail Faster
Founder and Managing Member Ron Slee shares words of wisdom he heard recently in today’s blog post: It Is Time to Fail Faster.
I never thought that I would call for “failing faster” in my life. Imagine failure? Of course, if we think about this, a moment’s failure is important to anyone who is interested in getting better at how they do things.
I was given this “line” by Stephanie Smith, Vice President of Marketing from Newman Tractor on a recent Podcast with Mets Kramer. We were talking about Marketing and the Digital Dealership and how fast change was happening. Stephanie calmly stated that we have to learn how to fail faster. I stopped her and asked her to repeat it. I found it to be so profound. Days later, to me it is still a very profound observation.
I was in school in the 1950s and the 1960s. It was a very basic education. Nothing particularly fancy. Reading, Writing and Arithmetic. My Mother was a teacher, she was the Vice Principal at the grade school I attended. She chose all my teachers. I couldn’t get away with anything. My Grandmother was a teacher in the proverbial one room schoolhouse. She got a Master’s degree from the University of Manitoba in the early 1900s. One year I was doing miserably in Geometry and Latin. I hated studying so I refused to memorize. I either understood it or I felt it was not that important. My Grandmother took over my schooling on the weekends. I spent several months with her every weekend. The first semester I got 38% in both Geometry and Latin. That was unacceptable to Granny. By the final report card, I averaged 78% for the year. I had no choice but to stop failing. I was “taught” a very important lesson that year. It wasn’t “don’t mess with Granny.” No, it was “apply yourself or there will be a consequence.” Did I ever learn! That, plus my experiences in the swimming pool as a competitive swimmer, made me who I became.
That led me to my favorite question: “Why?” It seems from a very young age I was always asking why. Perhaps every child does. But that meant I would try things. That was when I started experiencing failure. I remember one instance when I was doing some work in the warehouse at the Caterpillar dealership in Montreal. I think we were moving parts around trying to make more space. Bob Hewitt, the dealer principal, came out to the warehouse and put his arm around my shoulders. I was surprised. Here I was in a sweat shirt and jeans working and dirty in the warehouse. He was in a three-piece suit looking very elegant. He looks me in the eye and says “I am really disappointed in you.” Even in those early years I was rarely at a loss for words. I quickly responded “me too. Why are you disappointed?” I looked up at him and I could see his face start to twitch. He said “when you are finished come see me in my office.” The thing he was disappointed in was that the roads to a remote branch were closed for the winter and I had placed a stock order that wasn’t going to get there. I hadn’t planned for an early snowfall. I told him if I would have known that snowfall was coming, could have predicted that, I would be working somewhere else. True story.
I have made an unbelievable number of mistakes over the course of my lifetime. They continue even today. The trick with mistakes from my perspective is very simple. You are going to make mistakes, that is clear, identify the mistakes as quickly as you can and make adjustments, corrections, fix it. Fast. Today with the rate of change in society, in technology, in telecommunications, in fact in nearly every aspect of our lives is dramatic. Change is coming at us so fast it is impossible to keep up. At least that is true for me.
When Stephanie made the comment, we have to “fail faster” I was amazed. It was so appropriate. It was profound to me. It was an “aha” moment. It forced me to think about things again in a new way. I needed to pick up my pace and make more changes more quickly. Don’t worry about making mistakes. Don’t worry about failure. That is going to be a consequence of doing more things. Mistakes and failures are also a part of the process of learning. You just have to recognize when things don’t work and make adjustments. Make corrections. Everything will continue to be alright. No one is going to shoot me. At least, not for making a mistake.
Thank you, Stephanie.
The Time is Now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Friday Filosophy v.05.27.2022
Friday Filosophy v.05.27.2022
Friedrich August von Hayek, CH (8 May 1899 – 23 March 1992) was an Austrian–British economist and political philosopher. He became known because he strongly defended liberalism and free-market capitalism. He was against too much central control of the economy and society. He thought that forms of government like socialism were not good for the economy, and damaged freedom of the individual. Hayek’s signature work, The Road to Serfdom, refers to the consequences of socialism.
He was one of the most important economists and political philosophers of the 20th century. He was one of the most important members of the Austrian School of economics. He also had many ideas in the fields of jurisprudence and cognitive science. He shared the 1974 Nobel Prize in Economics with his rival Gunnar Myrdal. The award was for their work in the theory of money and economic fluctuations; also for their analysis of the inter-dependence of economic, social and institutional phenomena. He also received the U.S. Presidential Medal of Freedom in 1991. He is thought to be one of the major causes of change from the Keynesian policies of the first part of the 20th century. Instead of governments handling the details of the economy, they went back towards classical liberalism in the 1980s and later. This happened most clearly in the 1980s in the U.S.A. (under Ronald Reagan) and the U.K. (under Margaret Thatcher).
The Time is Now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
The Blurry Lines of Blame: Psychological Safety in the Workplace…
The Blurry Lines of Blame: Psychological Safety in the Workplace…
Guest writer Sonya Law is here to enlighten us again from the world of Human Resources with her latest blog post, “The Blurry Lines of Blame: Psychological Safety in the Workplace…”
“Be the leader that you wish you had, when we become a leader, it is important to remember the IMPACT that we have on others with our words and actions…” Sonya Law
Psychologically Safe workplaces take Ownership
We know that sinking feeling as a leader when something goes wrong in a team, or a mistake is made, especially when the impact on the business is significant. In that moment it’s easy to assign the blame to someone, in order to direct the spotlight away from ourselves.
However, this does not provide a psychologically safe environment for employees. When we immediately pull the blame lever, it makes the employee feel small and powerless, its disempowering.
Good leaders know about the blurry lines of blame. The better approach is to:
The reason that blame is such a slippery slope is that it’s a toxic emotion. We all have at some stage in our careers been on the receiving end of someone’s negativity. The risk to the business is the employee feeling disempowered, disengaged and leaves the business adding to the staff turnover.
It’s not about minimizing accountability it’s about taking a more considered, thoughtful and collaborative approach that produces better outcomes for the business. When we tackle problems together, we ALL grow.
Positive, Innovative Cultures thrive
It also serves to provide a psychologically safe environment for employees and positive culture in which to thrive. At a time when there is a talent shortage, it’s important part of the retention strategy that we are supporting employees to feel safe at work.
More importantly when you empower employees to be part of the solution it promotes innovation in the business.
When we take this role as leader as coach and to role model positive behaviors around making mistakes it leads to improvement in critical thinking and problem solving. Which are key business skills as we face an uncertain world and business environments.
Happy employees are productive, open to learning and change
Happy employees are also more productive and likely to take on more complex work or stretch projects and set more challenging goals, when it feels safe to make mistakes. They tend to be more open to learning new skills. Leaders and businesses who role model a growth mindset and a curious mind, will have the competitive advantage when it comes to people, product, service and technology and respond better to change.
Agile businesses position themselves well for Growth
It’s important that businesses are agile, the ability to adapt and change leads to Growth in any business. A leader who understands this will be able to attract top talent and have a collaborative work environment where the work gets done but they can also have fun and celebrate the wins along the way.
It leads to better outcomes for the business when you take care of people and take them along on the journey and GROW together.
“View every problem as an opportunity to GROW” Bill Marriott.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Relationship Selling Metrics: Face-to-Face & Write-Ups
Relationship Selling Metrics: Face-to-Face & Write-Ups
Guest writer Floyd Jerkins continues his series on Relationship Selling Metrics by looking at the numbers in face-to-face sales and also in your tracking of your sales with write-ups, and a careful system of staying organized.
Operating a business requires a basic understanding of financial management. Knowing the numbers is important in making good decisions. If your expenses are too high or sales are dropping off you make changes. Do you know how many customers your sales team talks to every week? Many organizations don’t know the answer and are leaving thousands of dollars on the table for a competitor to get.
Ok, let me do a reality check. There are issues with starting to measure a sales team’s effectiveness. Typically, the measurements start with sales volume and other financial metrics. Make no mistake about it; I am a proponent of these. The challenge is to identify where the sales process can be improved before the close of the sale. When you can enhance salespeople’s actions from the start to the end of the sale, the closing ratio goes up significantly.
By now in your business life cycle, you have some sort of a CRM in place. Various tools on the market are either simple or as complex as you want. Getting your sales team to log each sales action properly is yet another challenge and a whole article all to itself. So, with my disclaimers in place, let’s explore.
Measuring a salesperson’s success by the total revenue they generate is only one part of the equation. If a salesperson is selling 5 million a year, but leaving 5 million on the table, really, how good are they?
First, to be successful in sales, you have to talk to a lot of people. You also have to give a price to make a sale. Simple, right? Here is my rationale for a few sales performance metrics to get us started. Each CRM, as well as your organization, may call them something different, so please read between the lines if you will.
Sample Questions About Performance
What percent of Face-to-face to Sold do you think is a good number?
In the article, Relationship Selling- How to Measure Sales Success, I outline the basics of measuring the types of customers most businesses have. The average closing ratio, many say is 20%. I think that’s a weak number and here’s why.
Long-standing businesses have repeat customers. What if your sales team has 100 Face-to-Face contacts in a month that are repeat customers? Do you think closing 20% is acceptable? I don’t. The salespersons selling process needs to be revised because they cost the business thousands of dollars. Factor in your marketing investment to get an ROI that’s not impressive.
Take each “unit” the salesperson sells and divide that by the total number of face-to-face contacts in a given time period. If you establish a salesperson has a 20% closing ratio, what if they could improve that 5%? A 5% increase would increase the “unit” sales. This is a “natural” increase to make more sales. It doesn’t cost you anything if you help your salesperson improve their effectiveness.
Your business should be closing at least 40% to 60% of your repeat customers. Without measuring, you have wishful thinking.
What percent of Write-Ups to Face-to-Face contacts is a good number for an experienced salesperson?
Typically, a salesperson will share a price with a customer before they even qualify what the customer wants. This is generally because that’s one of the first questions a customer asks, “How much is it?” Salespeople feel obligated to answer every question vs. learning to control the sale through questions.
The rule of high volume and high margin sales is never price before you establish value.
A salesperson who verbally prices, especially if they don’t establish value before pricing, will have a lower closing ratio compared to a salesperson who makes written quotes every time they price. Increase the number of professional write-ups, and you will close more sales.
80% of all pricing should be in writing.
How effective is an experienced salesperson that sells 30% of their previous customers?
Let’s say you are measuring the type of customers your sales team is talking with. You know the % of each category. Every time a salesperson prices a customer and a sale is not made right then, the customer leaves the business.
Statistically, I know that most salespeople are not good with follow up. Nearly 7 out of 10 don’t follow up within 24 hours after they price a customer who doesn’t immediately buy. Part of this is because sales managers often focus their team in the wrong direction due to various financial or inventory pressures. The other part is they lack a system as well as the verbal strategies to service the customer. Many salespeople are great at selling the sales manager on why they shouldn’t call back, or they wait on the customer to “get back to them” as they artificially promised.
If this experienced salesperson is only selling 3 out of 10 customers, what is happening to the other 7? If you have a sales team of 10 with a 30% ratio, look how much is being lost due to an inefficient sales process.
Measuring allows you to know the realities of how to improve your sales team’s behaviors and maximize your marketing budget.
Measuring tells you exactly where to influence the behaviors of your salesperson and sales team.
Learning to be Effective Starts with Performance Sales Metrics
Talking to a measured number of prospects in a given period of time is just part of being successful in sales. There are only so many selling hours in a day, week, and month. Learning how to be effective with each contact starts the journey of successful time management.
By establishing value and knowing how to communicate that to a prospect, the closing ratio goes up dramatically, but so do the margins. A sales-driven organization takes time, energy, and the correct vision to have a highly competent team.
What are the performance sales metrics for your sales team?
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Do You Really Need PRODUCT SUPPORT PSSRs, or CSAs?
Do You Really Need Product Support PSSRs, or CSAs?
Guest writer Bill Pyles shares all the ways we really do need Product Support SRs or CSAs.
Most larger equipment dealerships have a robust PSSR (Product Support Sales & Service Rep), CSR (Customer Support Representative) or CSA (Customer Support Advisor) that has been in the making for years. This group of Product Support men and women are an integral, value-added, sales and profit generating part of the entire dealer organization.
But maybe you’re a smaller dealer and looking to get to the next tier of the Product Support ladder.
This blog is for you!
The CSA acronym is my personal favorite as I truly believe the words customer support advisor best describes the position. The CSA is the direct link between the dealer and everything Product Support related. A well-trained CSA offers the options that meets the financial and equipment requirements of the customer. Should a failed engine be repaired, rebuilt, or replaced? Is the machine a production machine or a backup? Is the machine scheduled to be sold out of the fleet within the next six months? While the machine is down, are there any other critical areas of the machine that need inspected and repaired before going to failure? Customers get very angry when a leaking final drive went to complete failure, resulting in a machine down situation just after leaving your shop.
If your dealership sells and services tracked type equipment (excavators, dozers and tracked loaders) I know your aware the largest cost of ownership is the undercarriage. The undercarriage is a system into itself. Your CSA should have a complete understanding of the undercarriage system. A simple proper track adjusting discussion with the customer demonstrates a knowledge that will save him dollars and downtime. Getting a customer maximum undercarriage life will save thousands of dollars over the life of the machine.
You’ll also need a good machine population file. It’s tough to forecast sales not knowing your opportunity. A good machine population file will identify the aging, location, and hours on the equipment. By the way a good population file is beneficial to sales, many machines are removed from the fleet after so years and hours. New sales opportunities!
Typically, the 80/20 rule is the typical CSA customer list. The top 20 customers assigned to a CSA typically take of 80 percent of their time and resources. Dealers will need to develop the unassigned fleet customers and the “middle segment”, customers who have your equipment but do not purchase any parts or services.
You’ll need an annual CSA meeting to discuss trends, sales forecast, changes in the market and to celebrate over and above accomplishments (just picture your last whole goods sales meeting). Is the GM or dealer principle attending? The GM and or dealer principle must make an appearance to show support and comment on the current business environment and congratulate the high performing CSA’s. A well-developed CSA program will give you much to celebrate!
But who does the CSA report to? The dealer principle?
I once worked for a regional vice president who upon returning from an executive meeting was convinced, we should terminate the CSA program, all of it, today, now.
This executive meeting was held during one of the severe cyclic downturns in heavy equipment sales. Dealers were struggling to survive and expense control was job one. Elimination of the CSA program would save accelerating expense dollars. His rational was simple, if severely flawed. We have a good product and if a customer experiences a failure, he will simply pick up the phone and call us. And with our new snazzy web site, the customer will simply log on and make arrangements for needed parts and or service. After thinking this over maybe for 60 seconds I countered with the elimination of the whole goods salesmen using the exact same logic; we sell good equipment and if a customer needs a new machine or a long-term rental, he will simply pick up the phone and call us. Fortunately, neither plan was put into action, we survived the downturn and came out stronger on the other end.
The sales manager? Maybe not a good choice as the sales manager has enough on his plate with inventory, inventory aging, salesmen, OEM programs, order windows, financing and fleet deals. A CSA reporting to the sales manager may turn into a delivery driver for a bucket, gathering hours for a trade in or running out docs to be signed.
The parts manager? Maybe not a good idea as most part managers are outstanding at managing their inventory, over the counter fill, stock orders, counter activity but not managing a parts and service sales person.
The service manager? Not here either. Service managers have many balls in the air dealing with shop service, field service, training, warranty, the pothole in the parking lot (a little sarcasm) OEM’s and technicians. Not much time to manage a CSA.
A CSA without a direct supervisor soon becomes a “floater” or Product Support orphan employee.
A better solution would be a Product Support Sales Manager or a position with a similar title. This person would have 100% accountability for a successful CSA program. He or she would work closely with parts and service management in writing CSA goals that are in alignment with company goals. The Product Support Sales Manager would do the CSA’s bi-annual and annual performance reviews as well administer incentive plans and salary increases, create annual sales forecasts and work closely with the OEM representatives regarding OEM Product Support programs.
A Product Support Sales Manager is the mentor, manager, and coach in developing a CSA. CSA’s must have a career plan with defined goals in sales and service activity. I worked at a dealer who had an outstanding Product Support Sales Manager, super high energy. I truly believed this man could inspire CSA’s to sell snow plows in Miami Florida!
A CSA MUST participate in technical training for the products the dealer represents as well as management level training in negotiating skills and people skills. A successful CSA will have a basic understanding of oil sampling, why on time PM’s are important and an excellent understanding of repair, rebuild or replace options. These skills development can be better managed by a qualified Product Support Manager who reports directly to the dealer principle.
CSA Vehicle: Car or Pickup Truck.
I’ve had responsibility for CSA’s and have experience with both the CSA company vehicle being a car or truck; pros and cons for both. If you give your CSA a car allowance and he or she uses their personal vehicle, you’ll soon find the car parked and a company truck “borrowed” for the day to run out some rebuild pumps and a cylinder or two. Car allowance or not, the CSA will be reluctant to damage or have spilled oil in the trunk or floor. In my opinion a pickup truck sporting the dealer’s name and logo is your best choice. Graphics today look sharp on the job site and rolling down the highway. And when on site, if there is something that the CSA can help out by running something back to the shop, it will not be a problem. However, you’ll want to avoid your newly minted CSA into becoming a parts runner. I do suggest that when a CSA plans his day, he or she will check with will call to see if there are some parts he can bring out and check the service WIP (Work In Process) to see if the customers he’s calling on today have any equipment in the shop and get the status, the customer will ask, be prepared!
CSA Salary & Expenses
CSA salary and expenses are usually split 50/50 between the parts and service departments. I’ve heard arguments that a CSA will sell more parts than service and parts should pay more of the percentage. Most CSA programs are salary and commission based. Another responsibility of the Product Support Sales Manager.
But keep in mind, a dealer’s best margin comes from labor sales. It’s the responsibility of the Product Support Sales Manager to steer the CSA into higher labor sales. If a customer needs a reman engine and the CSA provides a quote for the reman engine, the labor to do the remove and install must be included. I think Michael Jordan once said he missed every shot he did not take. The same applies here; don’t quote the labor and you surely will not get it. Your competitors may be quoting the same reman engine AND the labor. The customer likes the turnkey repair and asks your competitor when they can start. Always provide a professional estimate/quote and follow up with the customer. Add value and close the deal!
Customer Support ADVISOR
When I was a newly minted Product Support Sales Manager, I thoroughly enjoyed customer visits and scheduled customer meetings. I’d wait for an opportunity to ask the customer if a recent issue, wrong parts, late service call, etc. he brought up was discussed with his CSA (I did not use the CSA’s name). If the customer replied “oh you mean the guy who measures our tracks” then we’ve failed to make the ADVISOR relationship with the customer. A good gap we need to close. CSA’s need to listen when the customer talks and suggest solutions to equipment problems. I know we’re providing value when the customer asks the CSA “what do you think?” When the customer says those words, the rest is up to you to deliver the outstanding Product Support that makes you the “go-to” dealer!
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
The May Gordon Report: Hope, Jobs, Change
The May Gordon Report: Hope, Jobs, Change
Guest writer Edward E. Gordon has returned with his report for the month of May: Hope, Jobs, Change.
What are the major roadblocks to changing the ways the United States develops its workforce? We recently sought some answers from other workforce development leaders who also seek major improvements in our education-to-employment systems. There is general agreement that there are new education and training programs that improve adult and student learning, but there are significant obstacles to effectively and comprehensively implementing them.
Over the past 30 years regional public-private partnership hubs have been formed that integrate the wide variety of community resources needed to address skills-jobs disconnects and today’s vacant jobs crisis. But these pathways to a better educated workforce have only been supported by a comparative handful of enlightened community and business leaders. Why haven’t they been widely adopted throughout the United States?
Storrs Hall in his book, Where Is My Flying Car, gives several cogent explanations of why people in general are very resistant to systemic change. When their money, power, or prestige are at risk, systemic change issues are often turned into personal turf wars. Hall calls this the “Machiavelli Effect.” As Machiavelli stated in his controversial 1532 treatise, The Prince, innovators are often opposed by “all those who have done well under the old conditions.”
Hall asserts that bureaucracies today pose major obstacles to implementing systemic change. There are well-entrenched bureaucracies in business, education, unions, and government. He finds that bureaucrats often block changes because of a “failure of imagination.” They believe in their superior expertise. They automatically rule out the potential of untried but worthwhile solutions.
Hall also contends that bureaucracies stifle change due to a “failure of nerve.” Solutions to current challenges gain significant support. Only the details of implementing them need to be worked out. But nothing ever happens! Bureaucrats succumb to the fear that the results of his process will be so good that their leadership will be threatened.
Bureaucracies are powerful because they are able to use resource starvation and regulations to suppress systemic change. Furthermore, America today is split into warring factions that resist working together to combat threats to our prosperity and way of life. In its history the United States has faced formidable challenges and forged innovative solutions that moved the nation forward. What can we learn from the past?
After travelling across the United States in 1831, Alexis de Tocqueville wrote Democracy in America in which he concluded that civic activism was America’s greatest strength. As the United States expanded in territory and population during the 19th and early 20th centuries, ordinary citizens banded together to form local governments and organizations to solve common problems and meet local needs.
Tax-supported public education is among the most prominent advancements resulting from civic activism. By 1918 spurred by the Progressive movement, all the then states in the United States had enacted this reform. The United States became the first nation in history to attempt to offer a basic education to everyone. The system was far from perfect, but for most of the 20th century it worked well for most citizens. But the technological demands of the Fourth Industrial Revolution have made this education-to-employment system obsolete.
Why do we need a revival of civic activism today? There are at least 1.8 job openings for every unemployed worker. U.S. inflation has reached a 40 year high of 8.5 percent. Companies across all business sectors cannot find workers with the requisite skills to fill up to 13 million vacant jobs, thus threatening significant wage inflation. Unless significant efforts are begun to bridge the talent gap between current educational preparation and the rising skill needs of local/regional businesses, we believe that by 2030 the U.S. labor market will be in an even deeper crisis, perhaps triggering a popular backlash that could destabilize our nation.
We contend that America’s participatory democracy offers viable solutions to this grave employment crisis. During the Progressive Era a broad spectrum of voluntary organizations were formed. Many of them focused on civic improvement, such as Chambers of Commerce and Rotary Clubs. Today they and other groups and agencies such as Workforce Development Boards, regional economic development organizations, sectoral business alliances, community colleges, K-12 educational agencies, parent organizations, and unions are serving as catalysts for initiating broader public-private partnerships to update regional education-to-employment systems. Your advocacy and support for such efforts in your communities are vitally important for their success.
For a more comprehensive analysis of the causes and solutions for the current skills-jobs mismatch, see Job Shock: Moving Beyond the COVID-19 Employment Meltdown to a New Skilled Talent Decade
Edward E. Gordon is the president and founder of Imperial Consulting Corporation.
We invite to submit your questions or comments by email or calling us in Chicago at 312.664.5196.
Thank you for your continued interest in our publication.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Friday Filosophy v.05.20.2022
Friday Filosophy v.05.20.2022
Thomas Sowell (born June 30, 1930) is an American economist, historian, social theorist, and senior fellow at Stanford University‘s Hoover Institution. He is a National Humanities Medal recipient for innovative scholarship which incorporated history, economics, and political science.
Born in poverty in North Carolina, Sowell grew up in Harlem, New York. Due to financial issues and deteriorated home conditions, he dropped out of Stuyvesant High School and served in the Marine Corps during the Korean War. Upon returning to the United States, Sowell enrolled at Harvard University, graduating magna cum laude in 1958. He earned a master’s degree in economics from Columbia University in 1959, and earned his doctorate in economics from the University of Chicago in 1968.
Sowell has served on the faculties of several universities, including Cornell University, Amherst College, University of California, Los Angeles, and, currently, Stanford University. He has also worked at think tanks such as the Urban Institute. Since 1980, he has worked at the Hoover Institution at Stanford University, where he serves as the Rose and Milton Friedman Senior Fellow on Public Policy. Sowell writes primarily from a libertarian perspective, though he dislikes being labelled ideologically. Sowell’s libertarian-leaning philosophy made him particularly influential to the new conservative movement during the Reagan Era, influencing fellow economist Walter Williams and U.S. Supreme Court Justice Clarence Thomas. Sowell was offered a presidential position in the Nixon Administration and as Federal Trade Commissioner by the Ford Administration in 1976, but declined both offers. Similarly, he was offered the position as head of the U.S. Department of Education as Secretary of Education under Ronald Reagan, but refused to take the position. Sowell is the author of more than 45 books.
The Time is Now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Relationship Selling: Measuring Sales Activities Generates More Sales
Relationship Selling: Measuring Sales Activities Generates More Sales
Guest writer Floyd Jerkins continues his series on Relationship Selling with this week’s blog post: Measuring Sales Activities Generates More Sales.
Whether you have two or 200 salespeople, just talking to more people isn’t the best way to improve closing ratios. Measuring their sales activities generates more sales and allows you to know exactly where they need coaching.
Are You Using a Sales System?
Before we get too deep, let’s make sure you and I are on the same page. I believe you have to be using a sales process and a sales system. The key is to know where you are at in the sales cycle and to know where the customer is at in the buying cycle. Without utilizing these tools, you guess and wonder let alone waste valuable time.
Stop here and check out a couple previous articles of mine on the Steps to the Sale and Relationship Selling: Face to Face & Write Ups, and How to Measure Sales Success. It doesn’t matter that you are using different terms. What is vital is that you are working a sales process with your team and that each salesperson logs into a CRM.
Measuring Effectiveness is the Key to Increasing Sales
Why are salespeople having problems closing sales? Measuring what their sales activities are between the time they first talk with a customer until they price or close the deal will tell you where adjustments can be made.
Will most strategies work with all the customers all the time? Heavens no. Will they work with most of the customers, most of the time? Yes. Sure, the market is tough, prices are high, and the world is turning over and over, so we want to use real-time behavioral analysis to chart a path to more success.
Through analysis for example, you see they are shortchanging the qualifying process. They are getting into the close and realize they don’t know how much down payment the customer has, or that they had a trade-in, or they are not the decision-maker or myriad other things that can derail the close based on your kind of product and business. How are they building value of your product and your business if they don’t know this early on in the sales process?
Building value happens throughout the sales process, not just in the close.
If it all comes down to price, then just post your best price by a kiosk and fire all your salespeople. You improve a salespersons effectiveness not by talking to more customers but by doing a better job with those they work with.
What if you were able to improve your salespeople’s closing ratio from 10% to 15%, how much more money will you make?
Learning to ask better questions isn’t normal for many salespeople. Letting the customer control the tempo of the discussions happens. A good salesperson knows how to navigate the conversation to get out of it what they want, vs. just giving the customer what they want. Asking for the order too prematurely or pricing too quickly delays the buying process for the customer, takes more time to make the sale, and typically makes less margin.
An Exercise to Learn By
If your salespeople are closing deals at anything under 25%, then they are not exempt from a sales manager closely monitoring their sales behaviors. I’d want to see, feel and touch what’s happening in real-time.
Exercise Preparation
My goal here is for you to outline a complete customer profile to use in a roleplay. I’m not saying be an easy customer, but be realistic. Be the kind of customer that your salesperson encounters most of the time.
Include what the customer is looking for and why. List how they plan to pay for it and why they are shopping at your business, if they are married or not, and anything else that describes their buying motivations. List what they like the most and least about what they currently own and how much they paid for it. Did they finance it or pay cash?
Roleplay
Roleplay with your salesperson using the outline as your guide. Start with the introduction between the customer and the salesperson. Have the salesperson show you how they handle the first few steps to the sale. See how “effective” your salesperson is at finding out all that information in a casual, professional and sales focused manner.
Results
If your salesperson doesn’t like roleplaying because it’s not real, ok, you have a problem. If they do the roleplay but then make comments like, well, in a real situation, I wouldn’t say it like that.
You have a problem.
The start of the sale should make the customer feel at ease. Does the salesperson make a good introduction? The next step in the sales process is discovering or qualifying the customer. This is where they ask several questions and learn how to build value in your products and services that matter to the customer. Do they handle this well or shortchange the process?
A Coach Calls the Plays
In any professional sport team, the coach calls a play. They know the stats how each player performs and under certain conditions make changes. When a sales manager measures sales activities they know the stats of how each player performs. They know what plays to call and it reaps more sales.
Sales teams who are only measured by total units sold or just dollar volume, are leaving thousands of sales and dollars on the table. Measuring their sales activities generates more sales and allows you to know exactly where they need coaching.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
How Do We Find Our Individual Potential?
How do we find our individual potential?
As many of you know, the primary purpose of our Learning Without Scars business is to help people find their personal potential. That confuses a lot of people. Most of us don’t have any idea of our potential. Early on in civilization it was quite basic and very simple – to have the strength to be able to find and get food. We were hunters and gatherers. If we couldn’t find food, we died. Simple, right?
Today it is much more complicated. Governments are determined not to have people die from lack of food. We have many social programs to ensure that people will have access to the basic requirements of life. Even in these advanced times, we have many who choose to stay off the grid for one reason or another.
In the United States in 2020, about 18% of the population was under 15 years old; 65% from 15 years old to 64 years old; and 17% over 65 years old. I believe that understanding our potential changes with our age. It varies as we get older. One of the definitions of potential causes me some difficulty. It is the “possibility of becoming something more.” Isn’t that always the case? Aren’t we constantly learning things? Another definition is “coming to self-realization that there is more to our lives.” This definition gets rather personal for me. One day, while my father was still alive, we were having a glass of “brown water” and solving the problems of the world, he paused and looked at me and said “I don’t understand you. You are never satisfied.” I responded quickly with the blithe comment “well there is always more, isn’t there?”
And that becomes the challenge of potential. There is always something more.
One of my grandchildren is in High School and we were talking about what he wanted to do with his life. He said, “I don’t know.” It is a terrific answer for someone in High School today. There are so many choices available to us. There are the sciences and the fantastic developments being made within them. The arts and the various media – sculpture and painting – as well various methods to express ourselves visually. Music and literature and drama. Fashion and Makeup. I might add that many of the early school years tend to “stifle” creativity not “encourage” it. How do you start in finding this something “more?”
Well, how about starting with those things that do not turn you on? These are the things that you don’t like to do. In 1998 Sir Ken Robinson led a commission created by the government in the UK – “Commission on creativity, education and the economy.” It turns out he was highly critical of the education system under which he was taught. He regretted the fact that neither the primary school, secondary school nor college enabled people to develop their talents and discover what they really wanted to devote themselves to in their lives. Doesn’t that condition still exist where you live? Where you went to school, or your children and grandchildren are going to school? Where are we supposed to find this magic “thing” to which we want to devote our lives?
This is a difficult undertaking, isn’t it? This pursuit of our potential. How about we look at the other side of the question. What don’t we want to do? What aren’t we very good at in our lives? Sometimes that is easier to identify.
Isn’t there anything common in the items above?
Now let’s make another list.
Write down everything you like or liked to do in the areas below:
Now find the common denominator in these items.
Have you stopped any of these activities you enjoyed?
Now let’s rank the things you liked to do.
Some things should now be standing out. Things should be clearer.
Now comes a big question. I think it will have become clearer to you. You know better now some of the things you want to do. So, let’s ask that magic question? What have you always wanted to do but were afraid to start doing it? Do you think it is time to start doing it? That is the beginning of your potential. The possibility of becoming something more. Are you ready to get started?
The Time is Now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.