There are a lot of opinions on how Single Point Of Contact Selling will destroy profits, market share, and personnel. In this article, we’ll address the myths.
So what is Single Point of Contact Selling? SPOC provides an in-store, consumer-centric experience that puts the Buyer at ease, builds credibility and ultimately results in higher profitability. Traditional selling methods have five to seven points of contact. This creates frustration for the Buyer, especially in a time where efficiency is expected. SPOC selling reduces the interaction to one person, with managers and processors in the background. It’s always good to take a step back and review your process from the customer’s point of view.
Let’s take a look at the typical myths we hear at A2Z Sync when we speak to dealers who are thinking about making a change to their Sales Process.
We could never do that
Without a good process and support from the leaders of the store, SPOC will fail. This is a fundamental change to the dealership’s organization. It takes discipline, process, structure, and strong leadership to make such a fundamental change successful. In order to do so, three things are required:
- Executive Buy-In
- An unwavering commitment to change
- A sales team that is ready
It’s really not that difficult. A2Z Sync does a Readiness Assessment with our clients first and then we help them map out their process. Most dealers don’t know what the new pay plans should look like, so we can assist there as well. Finally, merging a great process with easy-to-use Single Point of Contact Software ensures a successful transition.
There will be Compliance and Legal problems
The reason there are Compliance issues now is that human error is part of the traditional sales model. Following a process with great software will prevent disclosure issues. Traditional F&I forces a pressure-selling environment which causes more disclosure and legal issues than Single Point of Contact Selling. SPOC allows the Sales Consultant to build rapport and trust with the customer first. Then, using that trust, the Menu presents the options that are available to the customer. The sale closes with a consultative approach.
Employees will leave
If you have no structure, no org chart, and no detailed pay plan, then people are going to leave. Sometimes employee churn is good: like the $400 PVR manager that always runs high CIT. Promote the great achievers in your store and keep them! You are investing in the future of your store. Great processes will allow you to retain the great talent you have and also attract the candidates you need. With the Single Point of Contact model, there is a clear career path that ensures better retention.
PVR will plummet
Failing to stick to the process will cause PVR to fall. SPOC is proven to generate an increase in product penetration and accessory sales! Keeping the traditional F&I experience may keep PVR high for now, but those stores will soon see a decrease in market share as more competitors adopt Customer-Centric Experiences.
It takes years to become a great F&I Manager
Single Point of Contact doesn’t mean that you need to get rid of your F&I managers. Retain them to drive the process! Compliant F&I Managers flourish in the SPOC method. They can train others with Needs and Wants, Menu Set Up, and Menu Presentations. The software and in-store training expedite the learning process, quickly creating SPOC certified consultants.
We would have to become One Price or No-Haggle
That’s up to the store and your market. We have clients that use the A2Z Sync software and still haggle. But again, this has to be mapped out in your readiness assessment. If you know that your market expects to negotiate and deems that a good customer experience, then keep your current pricing process.
So what are the results of moving to a Single Point of Contact customer experience? Based on what we have seen with our own client base and other stores that have gone to SPOC, here are the results you should expect:
- 50% reduction in average transaction time
- 8-10% decrease in Sales Compensation Expense
- Enhanced customer experience and improved CSI
- Increased Market Share
- Increased accessories gross
- Highly interactive and transparent customer buying experience
If you are considering making a change in your sales process, please don’t hesitate to reach out to us here at A2Z Sync. We can help you with your internal discussions with your management team. Our software was not only built by a dealer for a dealer, but we’ve used the software ourselves while working for a Single Point of Contact store.
A2Z Sync 303-332-5680 or firstname.lastname@example.org