The role of management has shifted significantly since the onset of the pandemic, with hands-on leadership becoming more crucial than ever.
In today’s episode of CBT Now, we’re joined by Louie Herron, former dealer principal, owner of Herron Automotive Solutions, business coach, entrepreneur, author, and speaker to share insights on why leadership involvement can make or break a dealership—and the strategies to accelerate a team’s performance.
First and foremost, Herron believes that effective leadership begins with personal development. By investing in self-growth, leaders can hone their abilities to lead and inspire others effectively.
The most important thing for sales managers is to step away from their desks and return to the showroom floor. This hands-on approach will enable leaders to observe their team in action more effectively, allowing them to coach in real-time and model the behaviors they wish to instill.
Herron also notes that sales managers should always know where their business stands through daily reconciliation. Leaders should prioritize looking at their lead channels daily and seeing what unsold prospects they had for the first 72 hours. Then, they should follow up with these prospects and try to close the deal.
The art of “saving a deal” is crucial, and it’s not the sole responsibility of the finance and investment (F&I) department. It is a team effort, and he recommends leadership teams host a daily “save a deal” meeting to train sellers to overcome customer objections.
He shares a unique and effective selling strategy in which the seller and leader tag-team the process. In this technique, the manager intervenes early by greeting the customer and passing them along to a seller. This interaction is designed to start building a positive rapport with the client. It sets a positive tone for the experience.
At this stage, the sales manager should inform the guest that it is store policy that everyone receives a proposal before leaving.
The salesperson will assist the customer in selecting a vehicle, steer the conversation away from numbers, and focus on the customer’s wants and needs. After the test drive or presentation, the sales manager presents the client with a proposal.
If a client isn’t presented with a proposal, the chances of closing the deal are minimal. Even if the customer doesn’t purchase, presenting a proposal keeps the door open for future opportunities. This approach lowers customers’ defenses, establishes more trust between the sales team, and increases the chances of sealing the deal.
Herron’s insights emphasize that effective leadership goes beyond directing a team from behind a desk. It involves being hands-on, leading by example, and consistently investing energy into your teams for dealerships to achieve success.
"The art of closing deals is, believe it or not, still prevalent in most car dealerships." – Louie Herron
