Recent Press - Powersports business

Fact one: Today when a motorcycle shopper walks through the door of a dealership, 77% of the time there will be no mention at all of the possibility of a test ride.

Fact two: Motorcycle dealerships which offer test rides to prospects at least three-quarters of the time retail on average 43% more motorcycles than those who do not.

Few dispute the fact that test rides sell motorcycles, so why do so few dealerships figure out how to offer test rides? Offering test rides is not a simple process, and developing a well thought-out dealership test ride process is not straight-forward and easy. Give any of us fifteen minutes and we could come up with a dozen strong reasons why offering motorcycle test rides is complicated, maybe dangerous and clearly difficult.

Compared to last year, the motorcycle sales department staff is more likely to introduce themselves to clients and ask follow-up questions, not to mention encourage consumers to sit on a bike.

However, they are less likely to inform the consumer about financing options, discuss the bike's unique features and how those compare to the competition, and less likely to provide visual aids, like brochures.

Those are some of the key findings from a national study that examines the effectiveness of the motorcycle industry's retail sales force. The study, called the Pied Piper Prospect Satisfaction Index (PSI), not only examines dozens of retail sales practices, but also identifies how specific brands are performing compared to their competitors.

Many shoppers today walk through the door of a dealership armed with enough product information from the internet to give a product "walk-around" themselves. The question is, "What can today's shoppers learn from your salespeople?" We know that the most successful salespeople are seen by the shoppers as helpful, rather than simply trying to sell a motorcycle without regard for the shopper's interests or needs. But if all a salesperson knows about a particular motorcycle are the specs printed in a brochure or the stats listed on a web site, then many of the most serious shoppers will find little value in talking with that salesperson.

Remember when you were a kid and built model cars or airplanes? You spent hours carefully assembling your models, but then placed them on a shelf and didn't pay much attention to them afterward. Building the models was the part that was fun.

Now consider an important ingredient to Harley-Davidson's survival thirty years ago: If you wanted to ride a Harley back then, you also had to regularly repair it, or even better, replace parts prone to failure with better aftermarket parts. The point is that owning a Harley involved a "relationship" with the motorcycle, rather than just a vehicle parked in the garage.

“There is now irrevocable evidence that there is a link between scoring high on PSIs and developing your business,” said Ducati North America (DNA) CEO Michael Lock. “You don't develop the business because you score high on PSI, you develop the business because you're running the business properly” on which the PSI is one measuring tool.

DNA dealers who consistently fared well in a retail sales practice survey called the Pied Piper Prospect Satisfaction Index (PSI) turn out to be the brand's highest-volume dealers, officials say.

Plus, DNA dealers who retailed 10 or more additional new units in 2008 over the previous year saw their PSI scores increase by an average of 2 points. On the other hand, DNA dealers who retailed at least 10 fewer units in 2008 compared to the previous year saw their PSI scores diminish by an average of 3 points.

According to a 2008 survey, motorcycle dealers respond to a consumer's e-mail inquiry within 24 hours only 30 percent of the time, according to a national benchmarking study that examines the effectiveness of the motorcycle industry's sales force. The survey of more than 800 dealerships, called the Prospect Satisfaction Index by Pied Piper Management Co., shows the motorcycle industry well behind the auto industry in this effort. The auto industry was twice as likely in 2008 to return a customer e-mail inquiry within 24 hours in comparison to motorcycle dealers.

As the old saying goes, “You don't know what you don't know,” and along those same lines you can't see what you can't see. An external, fresh prospective of the actual experience you're providing to your prospects gives you the ability to uncover what you're unaware of that could be costing you sales.

This is where Pied Piper's Prospect Satisfaction Index (PSI) Evaluations come in. I've used the data from these evaluations as the basis for many of my articles over the last year.

As I've studied PSI evaluations, I've identified a type of salesperson I like to call Mr. Customer Service. “Look out on the sales floor! He's able to answer any and all questions about the unit an go out of his way to make sure each and every customer is completely satisfied and taken care of.

The problem with Mr. Customer Service is he doesn't ask for the sale, attempt to set a future appointment or get follow-up information.

From Dealership University’s perspective, it’s difficult to solve problems if you aren’t aware you have any. That’s where Fran O’Hagan, owner and founder of Pied Piper Management Company, comes in. The five year old company has created independent industry-wide benchmarking based on real shopper intercept research, industry and trans-industry comparisons that allow dealers and manufacturers to identify strengths and weaknesses and improve their overall performance.

CEO Michael Lock credits the company’s model lineup transformation and dealer improvements for the record sales increase.

[Ducati North America introduced Pied Piper PSI to their entire dealer body in fall 2007.]

A 2008 national survey showed the motorcycle industry has room for improvement in traditional customer service areas, including simple tasks like greeting customers and conducting follow-ups.