Survey: Dealers Open to Change
CHICAGO — Dealer software provider MAXDigital released new dealer research on the subject of turnover and sales processes. In conjunction with Erickson Research, MAXDigital surveyed nearly 400 dealers across the U.S. in January 2018.
Among other key findings, analysts said turnover remains a problem for dealers. Nearly 80% of dealers in the study said turnover is an issue affecting their business, with 23% saying it’s a major issue. Respondents cited inadequate or lack of training and ineffective hiring processes as the biggest factors leading to turnover. Seven in 10 dealers said their salespeople have told them they don’t have enough training or information.
Nine out of 10 dealers said hiring good salespeople is difficult. Seventy-six percent of dealers said they’ve hired people without automotive experience, and 62% said they’ve hired people without sales experience of any kind. Ninety percent of dealers surveyed rely on high-commission compensation, with 42% offering no fixed salary at all.
Finally, analysts said, dealers are looking to change their sales process. Four in 10 dealers said they’re considering changes to their sales process in the next 12 months. Moving to a more consultative sales process was the top change considered, followed by adding technology. Seventy percent of dealers in the study believe technology makes salespeople more successful and builds trust and confidence with customers.
The top drivers for a new sales process are higher close rates and increased CSI scores. Employee turnover is also a driving factor, with more than 50% saying a change in sales process would help retain staff. Many dealers are looking to adopt a low- or no-haggle pricing strategy. Four out of 10 in the survey said they are looking to adopt a low- or no-haggle pricing strategy.
“This study shows how dealers are re-examining their sales processes in order to align with the way customers want to buy,” said MAXDigital CEO Steve Fitzgerald. “Adopting a process that provides a streamlined car-shopping experience will help dealers increase sales and profits and improve employee satisfaction and retention.
“When salespeople are trained and equipped with product information, they’re more confident and able to do their job well. They’ll feel good and be more likely to stay long term,” Fitzgerald added.
Nearly 400 U.S. dealers completed the survey in January 2018. Six 30-minute phone interviews were also conducted in February 2018. Respondents included owners, dealer principals, general managers, used-car managers, and internet managers.
To read the report in its entirety, including an infographic, click here.
More Industry

New Mexico Stores Change Hands
Three dealerships owned by three brothers are renamed for a new partnership bridging the founders’ family and a new auto retail leader.
Read More →
International Automakers Overpower Domestic Output
As the current U.S. administration pushes for domestic automotive production, a new report sheds light on the prevalence of international automakers here.
Read More →
World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →