I was at a Dealership the other day that had laid-off the receptionist. She was also the person that managed The Traffic Log. So I asked the Sales Manager, “who is taking care of the traffic log ? ”... “I am”, he said. .... “Well, when you step out, who manages the log?” ... “The salesmen”, was his answer.

 Oh, no ! ... was what flashed in my head ... as I visualized a Referee throwing a flag !

 The quickest and best way to check sales effectiveness is with an accurate, up to date Traffic Log. It is a gauge on how effective the sales department is ... and it is especially important after new sales people are hired and in the process of being trained.

YOUR SUCCESS AS A MANAGER

Your success is based not only on volume and profit, but on your closing ratio as well. (The number of customers closed) ÷ (The number of customers seen in the showroom) = (your effectiveness as a Sales Manager). A high closing rate, approximately four or five out of ten is achieved with a properly trained and motivated sales force ... one that is developed and supported with sound and consistent management practices.

In many dealerships, the salesperson selling the most vehicles is not necessarily the best salesperson. A top salesperson that sees twice as many customers but sells only a few more units than the second ranked salesperson is not maximizing opportunities and actually losing money for the Dealership. This type of top salesperson is actually turning away customers who might have been sold if the sales process had been used effectively.

For example: If John saw 11 customers and closed 4 ... his closing percentage is 36%. However, Mary saw 6 customers and closed 3 ... her closing percentage is 50%.

While John’s closing ratio does not seem to be a great deal lower than Mary’s ... John lost more customers than Mary saw all day. Obviously, John needs some help in improving his closing ratio and reducing the number of lost opportunities.

The Traffic Log can tell you a lot more than just closing ratios ... it can show you exactly how effective each salesperson is at performing the Steps to the Sale. You can determine how effective your salespeople are at applying the seven step sales process by performing a Traffic Log Analysis. However, this requires carefully kept and accurate recordings in the Traffic Log. I will write more on how this should be done soon ... but to the point of this blog ... who is one of the most valuable employee’s on the sales support team? Yes, the answer is: The Traffic Log Receptionist.