Tag Archive | "Rich Moore"

Millennials: Recruiting, Training and Retaining them is Key to Dealerships’ Future

We tend to group people into generations to better understand their collective point of view. Millennials are no different. As the largest generation, out numbering Baby Boomers in size and, arguably, influence, understanding their point of view is increasingly important to cultivating successful dealership employees.

There are three distinct areas to consider to be successful at recruiting, training and retaining the millennial generation. The first area is to understand them. This is your key to developing a successful plan going forward. Second, how are you going to interact with millennials during the hiring process and into their employment? This is the execution of your plan. Third, how do you retain them? This will be your measure of success going forward with your newly hired millennials.

  1. Understand Them.

Who are millennials and why should you care? As a generation, they surpassed baby boomers as the largest generation in early May of 2016[1]. Their buying power will far surpass any previous generation.

For a better understanding of millennials, let’s compare and contrast the current generations in the workplace.

Baby boomers are currently ages 51 to 69 and number around 74.9 million[2]. They tend to put family first, value job security and have concerns about retirement. Boomers are IT adopters and prefer to communicate face-to-face or on the phone.

Gen X, which numbers around 66.1 million members[3], is sometimes referred to as the Lost Generation or “latch key kids”. With ages between 35 and 50 they are more concerned with maintaining a good work/life balance than their parents. As digital immigrants, they prefer to communicate via text and email.

Now, on to millennials. Aged 18 to 34, they number around 75.3 million[4]. Millennials are the most educated generation and typically have higher levels of debt. Additionally, they are slower to make major purchases such as automobiles and homes. Millennials are considered digital natives, having grown up with their technology. Not surprisingly, they are tech-dependent. They just expect their tech to work and are generally not savvy as to how the tech actually works. Their communication preferences are online and mobile.

  1. Recruit and Hire Them.

Now that we have an understanding of millennials, we can look at some ways to recruit them and how these might differ from the traditional recruiting methods. One thing to be aware of when recruiting, is the millennial generation is quite unfamiliar with traditional recruiting and hiring practices. Additionally, you can expect them to enter the job market many years later than previous generations and often be more highly educated.

When you are recruiting, be prepared for candidates who are entrepreneurial in nature and looking for rewarding careers that will have a broader impact, not just for their employer but society in general. As part of your interviewing process, you need to make sure they understand their role in the company’s success as well as the role of the dealership in their customers’ lives.

To assist you in your recruiting efforts, consider hosting “learn about the car business” meetups. You should also reexamine the careers section of your website and make sure you are not just listing the job requirements but also providing career benefits and a look at how the role impacts the bigger picture; how your dealership affects people’s lives for the better. You may also want to develop some educational pieces that can be shared across multiple recruiting and social media platforms.

  1. Train and Retain Them.

Now that you’ve hired someone, it’s time to review your training processes. If you are still sitting new employees down in the break room and having them watch hour after hour of VCR tapes starring sales trainers from the ‘70’s & ‘80s, you will lose millennials. Your training needs to match the times. Train like the year in which you are hiring. You need to take a look at when the last time was you updated your training processes and materials. Granted, in the basics of sales or F&I hold true. However, your training materials and the way you deliver training need to be current. You may want to consider using more one-on-one training. This is something that goes a long way with the millennial employee. It gives them a sense of belonging to a greater organization than just selling cars.

Here are a few additional points to think about when training millennials:

  • Use coaching – not telling
  • Realize that they want to feel unique
  • Incorporate lots of confidence-building tools and techniques

Last but not least, make sure your training materials are available across multiple devices such as physical job aids, tablets, computers and smartphones.

Okay, you’ve recruited them, you’ve trained them and now you need to retain them. Here are some tips for making sure millennial employees stay with you for the long run.

As noted previously, you are going to need to show millennials how their role at the dealership benefits others, such as how they are helping the entire operation succeed and what role the dealership plays in the community. Remember, you want to provide examples of positive impacts to this generation because, to them, it’s not just about the paycheck. Research has shown that many millennials will take a job that impacts the greater good rather than its higher paying counterpart.

You are going to need millennials working in your dealership. You can expect new car purchases by baby boomers to decrease. GenX purchase growth is beginning to slow. Millennials’ new car purchases are beginning to rapidly increase to the point that by 2020, 40% of purchases in your dealership will be by millennials[5].

Who better to sell a car or F&I product to a millennial than another millennial, someone they know, like and trust. Just like it has been for generations.

[1] Pew Research Center

[2] Pew Research Center

[3] Pew Research Center

[4] Pew Research Center

[5] Forbes Research

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An Interview with Rich Moore

After more than 30 years in the automotive industry, Protective Asset Protection’s Rich Moore has reached the upper echelon of F&I trainers. He maintains a full training schedule while contributing articles to industry publications and speaking at events such as Industry Summit, Agent Summit and, most recently, Compliance Summit in his native Texas. AE caught up with Moore to learn how he broke into the industry and what the future holds.

How did you get your start in the auto industry and how did you become a trainer?

I got started in the industry in 1984 at Rod East Volkswagen in San Antonio, Texas, which really had nothing to do with my background and education in professional photography. I had a brother-in-law who was a wholesaler, and he suggested that car sales would be a good place for me. I was reasonably fresh out of the Navy, and it seemed like a good challenge.

I found I was a good salesperson but a better sales manager. I really liked teaching and seeing my team succeed with the techniques on which they had been trained. Moving into training was a natural step for me since my last duty station in the Navy had been as a senior trainer in the Navy Leadership and Development Program.

What areas in F&I do you focus on with your training?

Our courses pretty much run the gamut from why F&I is important to the dealership to how to build a great relationship with sales and, most importantly, the F&I sales process. In fact, we created an accelerated course based on input from the field that is nothing but two-and-a-half days of interview, menu, objection handling and closing.

Why should an agent call you for a training assignment?

Our team trainers are still active in the dealerships they service and will sub for vacationing F&I managers. That means they are current on what is really happening in dealerships across the nation. So when we train for an agent or dealership, they get real-world tools and techniques, not theories.

What are the top three messages you try to give at each of your training sessions?

First and foremost for me is to practice, drill and rehearse! F&I managers and salespeople in general tend to practice on their customers. That’s too late. Imagine if any major sports team waited until the game started to practice! It would be a disaster.

Second, learn to tell great stories — real ones — about the value of your products and how your customers have benefited in the past. People can relate to real-world situations that have happened to others, and people buy on emotions and justify with logic.

Third, don’t be greedy. Listen to your customers. If you present what will benefit them, you’ll have a much better chance of selling at least one product with every deal. Over the long run, when added to the sales from the folks who buy everything, that extra product per deal produces more sales than you would think. It’s a much better way to make your numbers than being greedy and trying to force a home run from every customer.

What changes in the industry do you foresee that will impact your training the most over the next few years?

Not so much changes in the industry as changes in how our customers will interact with our industry. Millennials and the generation after them, now being tagged “iGen,” won’t take time or have the tolerance for our traditional sales processes. They want it now and on their devices. That means that, as trainers, we need to stay on top of customers’ habits so we can train F&I managers to be responsive rather than reactive.

The other change I see on the horizon is the need for F&I managers to move away from relying on making money on rate and instead learning how to build irresistible value in their products. If our customers see great value first, price becomes less of an objection.

Tell us about yourself and the kind of activities, hobbies, interests you pursue outside of training.

As I mentioned earlier, photography has always been and still is a passion. Internet marketing — specifically, using live, interactive webcasting — is a major interest now. I think it’s the future of online marketing. And we can’t forget getting on the Harley with my wife and taking a long weekend ride somewhere.

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Rich Moore Joins Texas Compliance Summit

AUSTIN — Rich Moore, director of training for Protective Asset Protection, will serve as a featured speaker at Texas Compliance Summit, organizers said Thursday. The event is scheduled for Nov. 16–17, 2015, at the Hilton Austin Airport.

“Rich brings the same passion to his speaking engagements as he does to his training sessions and compliance webinars,” said David Gesualdo, show chair and publisher of Auto Dealer Today and F&I and Showroom. “His expertise in F&I and digital marketing is a welcome addition to our agenda.”

Moore has emerged as a leading voice among compliance trainers, advocating for a transparent sales and F&I process as well as regulatory compliance in dealership communications, including social media. He has delivered well-received presentations at Industry Summit and Agent Summit. This year, he helped launch a series of compliance webinars that has gained a following among auto dealers as well as RV and powersports dealers.

“I’m really excited about the opportunity to join the team for the Texas Compliance Summit,” Moore said. “With the current emphasis on all things compliance, this is a great venue to ensure that your dealership team is doing things correctly.”

Moore’s presentation, “What You Don’t Know Can Hurt You,” will begin at 1:40 p.m. on Tuesday, Nov. 17, leading off the “Your Responsibilities” portion of the agenda. Other subject headings include “Rules and Regulations,” “Easy-to-Implement Processes and Controls” and “Is It Compliant?”, an open-forum discussion among Compliance Summit attendees and speakers.

More information, including registration, is available at the event’s website. For sponsorship and exhibition opportunities, contact Eric Gesualdo via email hidden; JavaScript is required or at 727-612-8826.

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Re-thinking F&I Success Measurements

Most dealers are well aware of the F&I department’s impact on their bottom-line. Chances are, if you ask most dealers, general managers and F&I managers how they measure F&I success, they will cite gross profit per vehicle and service contract sales acceptance as their preferred metrics. While these are important metrics for evaluating F&I performance, there are some additional measurements agents should suggest and share with their dealer clients.

In particular, there are three additional performance indicators that will enhance a dealership’s ability to assess the strengths and shortcomings of the F&I processes and personnel. With these additional metrics, dealers and their respective managers can better understand what types of deals are making their way to the F&I office, how effectively F&I products are being presented and how well customers are receiving F&I products.

Here are three performance metrics to consider adding to monthly reports.

1. F&I Product Sales by Salesperson
In most dealerships, a clear division of duties exists between the salesperson and the F&I manager. However, a salesperson’s actions on the dealership lot, telephone and showroom floor play an essential role in the success of the dealership’s financing and protection product sales. How the salesperson manages the interaction between the customer and the F&I professional has a major impact on the ability to finance the purchase as well as sell protection products, such as vehicle service contracts. By tracking the sales acceptance rate of F&I products by salesperson, a dealership has a better opportunity to assess the sales team’s understanding of the F&I process, and provide training for salespeople when necessary.

2. F&I Products per Delivery
Measuring F&I products sold per retail delivery (that is, F&I products sold divided by retail deliveries) takes the analysis of the F&I process a step further than the more common measurement of profit per retail delivery. More dealers should track and monitor this metric to better understand the needs of their customers. This metric can provide greater insight into the inner workings of the dealer’s F&I process.

By consistently tracking F&I products per delivery, a dealer is able to better evaluate how well the F&I sales process is functioning. A higher products-per-delivery likely means the F&I staff are having success presenting the value of the full suite of products. Conversely, a continual decline in this metric often indicates the need for enhancements in the F&I presentation process or additional training to improve F&I managers’ sales skills.

3. Customer Satisfaction
Customer satisfaction is something every successful dealer evaluates on a regular basis. Often with all the work that goes into tracking and analyzing customer satisfaction, there is one important department in the dealership that is overlooked. While dealerships are careful to ensure they maintain positive customer service scores for their sales staff and service department, the F&I department is often forgotten. By placing greater emphasis on the F&I process within customer service surveys and regularly monitoring the scores, dealers can help ensure that their F&I process and personnel are providing a customer experience that strongly supports the sale of protection products.

These three metrics are not meant to replace existing reports that many dealers use to evaluate the success of their F&I operation. Instead, the addition of these measurements will provide greater insight into the processes that drive the successes of the F&I department. By expanding the way dealerships track and evaluate their F&I processes, the opportunity for a stronger bottom line only grows.

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