Recent Press - sales process

Harley-Davidson dealerships were top-ranked in the newly released 2013 Pied Piper Prospect Satisfaction Index (PSI) U.S. Motorcycle Industry Benchmarking Study, which measured dealership treatment of motorcycle shoppers. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success.

For the first time since 2008, Pied Piper also separately measured how effectively motorcycle dealerships responded to customer inquiries received online through dealership websites.

Harley-Davidson dealerships led all brands in 18 different sales activities, such as encouraging shoppers to sit on a motorcycle, asking for contact information and helping the shopper overcome obstacles to the purchase. 11 different brands led at least one sales process category, and brand performance varied considerably from brand to brand. For example, Ducati salespeople offered a brochure to approximately nine shoppers out of 10, while less than half of Suzuki, Honda or Kawasaki salespeople offered a brochure. BMW, Triumph and Harley-Davidson salespeople were more than twice as likely to offer a demo ride as the salespeople at Ducati, Suzuki, Honda and Yamaha dealerships. Victory salespeople were most likely to suggest arranging a demo ride in the future.

Harley-Davidson dealerships received the highest score in the 2013 Pied Piper Satisfaction Index (PSI) released this week. However, Suzuki dealers ranked No. 1 in the PSI-Internet Lead Effectiveness study.

Look for more on the PSI results in the May 27 issue of Powersports Business. The following is the news release from Pied Piper Management Company, LLC:

Harley-Davidson dealerships were top-ranked in the newly released 2013 Pied Piper Prospect Satisfaction Index (PSI) U.S. Motorcycle Industry Benchmarking Study, which measured dealership treatment of motorcycle shoppers. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success.

For the first time since 2008, Pied Piper also separately measured how effectively motorcycle dealerships responded to customer inquiries received on-line through dealership websites.

MONTEREY, CALIFORNIA – May 6, 2013 – Harley-Davidson dealerships were top-ranked in the newly released 2013 Pied Piper Prospect Satisfaction Index(R) (PSI(R)) U.S. Motorcycle Industry Benchmarking Study, which measured dealership treatment of motorcycle shoppers. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success.

For the first time since 2008, Pied Piper also separately measured how effectively motorcycle dealerships responded to customer inquiries received on-line through dealership websites.

Harley-Davidson dealerships led all brands in eighteen different sales activities, such as encouraging shoppers to sit on a motorcycle, asking for contact information, and helping the shopper overcome obstacles to the purchase. Eleven different brands led at least one sales process category, and brand performance varied considerably from brand to brand. For example, Ducati salespeople offered a brochure to approximately nine shoppers out of ten, while less than half Suzuki, Honda or Kawasaki salespeople offered a brochure. BMW, Triumph and Harley-Davidson salespeople were more than twice as likely to offer a demo ride as the salespeople at Ducati, Suzuki, Honda and Yamaha dealerships. Victory salespeople were most likely to suggest arranging a demo ride in the future.

Industry average dealership performance was mixed when comparing 2013 with the previous year.

Salesperson behaviors more likely in 2013 than 2012 include the following:

• Offering demo rides (now 19% of the time)
• Discussing features unique from competitors (now 49% of the time)
• Encouraging going through the numbers or writing up a deal (now 33% of the time)

Salesperson behaviors less likely in 2013 than 2012 include the following:

• Conducting a walk-around demonstration (now 70% of the time)
• Overcoming shopper objections (now 74% of the time)
• Giving compelling reasons to buy now (now 39% of the time)

2013 marks the seventh consecutive year of Pied Piper PSI motorcycle industry benchmarking studies. With seven years of data gathered from tens of thousands of motorcycle PSI evaluations nationwide, Pied Piper was able to fine-tune the study questions, weightings and scoring for 2013. As a result, Pied Piper reset the 2013 motorcycle industry average PSI score to “100.”

The resulting “second generation” PSI scoring is now even more closely correlated to motorcycle dealership sales success. Pied Piper has found that on average, when motorcycle dealerships are ranked by their PSI score, dealerships in the top quarter sell 22% more motorcycles than dealerships in the bottom quarter. “Any motorcycle dealership faces plenty of challenges that are difficult, if not impossible, to change,” said Fran O'Hagan, President and CEO of Pied Piper Management Co., LLC. “In contrast, how a sales team sells is something a dealership can improve immediately.”

MONTEREY, Calif. - Among motorcycle retailers, Harley-Davidson dealers treat shoppers the best — although Suzuki dealers excel when it comes to following up online leads.

These were two of the findings of a pair of new studies: the annual 2013 Pied Piper Prospect Satisfaction Index (PSI) and a separate study by the same firm that, for the first time since 2008, measured how well motorcycle dealerships responded to customer inquiries received online through dealer websites.

Dealer service provider Pied Piper conducted its PSI study between July 2012 and April 2013 using 2,503 hired anonymous mystery shoppers at dealerships representing all major brands, located throughout the U.S. After each visit, the shoppers answered yes-or-no questions.

Using data collected from its clients, Pied Piper claims to have found a link between the mystery shopping scores and dealership sales.

Harley-Davidson dealerships led all brands in 18 different sales activities, such as encouraging shoppers to sit on a motorcycle, asking for contact information and helping the shopper overcome obstacles to the purchase.

Eleven different brands led at least one sales process category, and brand performance varied considerably from brand to brand. For example, Ducati salespeople offered a brochure to about 9 shoppers out of 10, while less than half of Suzuki, Honda or Kawasaki salespeople offered a brochure. BMW, Triumph and Harley-Davidson salespeople were more than twice as likely to offer a demo ride as the salespeople at Ducati, Suzuki, Honda and Yamaha dealerships, the study found. Victory salespeople were most likely to suggest arranging a demo ride in the future.

Harley-Davidson dealers outscored dealers from other brands to take the top spot in the Pied Piper Prospect Satisfaction Index U.S. Motorcycle Industry Study for the second consecutive year.

The annual study measures the effectiveness of motorcycle dealerships, rating them on how they perform in different categories, such as inviting customers to sit on a floor model, offering demo rides and asking for a customer's contact information. The study was conducted from July 2012 to April 2013 with data collected by 2,503 hired “mystery shoppers”.

We've included the full scores below as well as the scores from past years. One caveat however: Pied Piper PSI has rejigged its study questions and adjusted the weighting and scoring for the 2013 study to achieve an average score of 100. This resulted in a significant scoring changes compared to last year's study and a wider range between the highest and the lowest scores.

Harley-Davidson dealers ranking highest score of 111 while KTM dealers ranking last at 73. Last year's study had Harley-Davidson leading the way with 108 while KTM again ranked last but with a score of 92.

Harley-Davidson dealers outperformed all other manufacturers in 18 different activities including encouraging customers to sit on motorcycles, asking for contact information and helping overcome obstacles to a purchase.

Second place in the 2013 Pied Piper study was Ducati with a score of 107. Ducati dealers offered customers a brochure nine out of 10 times to lead all manufacturers. By comparison, less than half of Suzuki, Kawasaki and Honda salespeople offered brochures. Ducati dealers however were less than half as likely to offer a demo ride as BMW, Triumph and Harley-Davidson dealers.

MONTEREY, CALIFORNIA – March 11, 2013 – Porsche and Nissan dealerships ranked highest in the 2013 Pied Piper PSI(R) Internet Lead Effectiveness™(ILE™) Study, which measured how auto dealerships respond to customer inquiries received over the internet. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to actual industry sales success.

Industry-wide performance continued to improve, with 30 of 33 brands scoring above the industry average from two years ago; and 24 of 33 brands scoring above last year's industry average. The study showed that salespeople responded to customer internet inquiries within 30 minutes nearly half the time (48%). In contrast, two years ago it took a full hour to receive the same percentage of salesperson responses. However, there remains plenty of room for improvement. Nearly one-in-four of today's customer internet inquiries remain unanswered after 24 hours; unchanged from last year.

Turning all those lookers and shoppers into buyers is, in retail, the “holy grail” of topics. We send our managers and sales folks to workshops and seminars looking for answers. We test the waters, view the landscape, and hope that just over the horizon is the Promised Land, the mother lode.

Retail gurus who enlighten the sales process in ways that ensure success are far and few between, if they exist at all. That's not to say there's no one out there who can guide and direct, teach and mentor, in ways that can be beneficial. There are plenty of us walking around doing just that. But here's the rub: There's a lot more to it than just processes and procedures.

It's more than all the social media you can throw out to folks or how many craigslist listings you all can do in a day. It's more than door swings or what you have or don't have, and it's not about the potential we all have.

It's about making sure that what needs to be done is really being done. That's the missing link and it's more important than ever. Lookers and shoppers are a commodity too important to waste.

The big news from this year's Long Beach motorcycle show is not what happened, but what might happen. First though, remember the Honda motorcycle ad, “You Meet the Nicest People on a Honda?” Believe it or not, 2013 marks fifty years since that ad helped mainstream America notice — and buy — motorcycles in the 1960s.

Back to the Long Beach show … At last year's show, Honda released the CBR250, a sub-$4,000 model aimed at driving new buyers into dealerships. At this year's show, Honda introduced a lineup of three 500cc motorcycles, starting under $6,000. Like the CBR250, these new 500s will appeal to new riders, but the solid designs look much better than we might expect of “beginner bikes.” It is not just Honda either. Kawasaki's new Ninja 300 is a similarly attractive product with a price that will not scare away new riders.

Think about these products … Five or six years ago — during the time of $10,000 600cc sport bikes — manufacturers and dealers would have paid little attention to a $6,000 500cc motorcycle. After all, the profit margin to the manufacturer for these “beginner bikes” pales in comparison to that of a $10,000 motorcycle, and the same is true for dealers. Last week while visiting a Honda dealership, I heard complaints about the low gross available on the new CRF250L. “Hardly worth the effort to sell it.”

But let's think back to 1963, and what might happen today. We can complain about selling less expensive motorcycles, or we can turn 2013 into 1963 all over again. The gross from today's CB500 or Ninja 300 sales may be lower than we like, but those customers are likely the key to the industry's success. They may not remember that 1960s Honda ad, but these new customers will go on to buy multiple bikes and accessories over the years and will also attract their friends—a whole new generation of riders—into your showroom.

I count myself as one pretty lucky fellow. I have the great fortune to be able to meet and talk to a lot of wonderful people. I get to interact with dealers from all over the country, share information and ideas and pass it all on to others that can use it. Sharing ideas and mentoring others is something to embrace, and I relish the responsibility.

I was really struck by this during a couple of impromptu dealer visits a few weeks ago. These visits were just about looking at two dealerships that were totally different in look and feel. Both made me remember why I got into this industry, along with why I've stayed in it.

The first was a multi-line dealership that took my image of what powersports dealerships should be to a whole other level. This has nothing to do about practices. This is about the visual experience, the presentation. This is a statement about where we can go if our desires push us to believe in dreams.

I was blown away at the scale of what had been created, with the dealership anchoring it: A museum that was visually stunning. A restaurant, Zagat rating of 22! The restaurant walls were adorned with vintage pieces of different motorcycles that long ago stopped being part of something we would ride. Throw in a high-end hotel for good measure and you have your 21st century motorcycle dealership. It was so cool.

As I left, there was this overwhelming sense of pride in the industry that chose me to be a part of it so many years ago.

Next, in complete contrast but equally perfect, was a dealership that's been around since time began. I walked through the doors, and I could feel the history. I closed my eyes and could smell the past. This dealership also had a museum, and as I walked through it I was taken back to days of Gary Nixon and Kenny Roberts. Motorcycles ridden by the greats of our past were all there.

This was “old school,” and what a great old school it was. I was like a kid in the candy store as I was shown around. I was told stories that took me way back. And I was reminded that many of the ways we used to do things still work today, and that the past is still part of our future.

It's our charge, generation to generation, parents to children, teachers to students, to impart what we've learned. Wisdom guides knowledge, and we empower others' abilities and desires for growth. We then pass on the responsibility of carrying that torch to the next generation. It's amazing how much information we all have tucked away, and just as amazing as what we can do with it.

To look backward for a while is to refresh the eye, to restore it, and to render it more fit for its prime function of looking forward. ~- Margaret Fairless Barber

I was in a dealership the other day conversing with a few of the team leaders. The discussion was centered on what was (and what was not!) happening in their sales department.

“Let's focus on which policies and procedures are being used in the department,” I said. “Great,” was the answer back from most everybody — except I did notice a “Why are you wasting my time?” look from one of the team leaders.

“Let's start with some of the basics,” I said, “like introducing yourself and asking someone's name.” The why-are-you-wasting-my-time fellow gave me a sour look that said, “I know that.”

“Great,” I said, “Let's talk about the importance of the write-up process and of making sure we always get contact information.”

“I know all about that, too” sneered you-know-who.

“That's even better,” I said. “And I bet you know the importance of always asking for the sale, or finding out what is preventing the purchase today, right?”

His indignant answer was, “You bet! After all, this is pretty basic stuff.” I agreed with him that it was.

Basic stuff: Asking for someone's name, introducing yourself, building rapport, a little fact-finding, getting contact information.

Basic stuff: Giving that prospective client a reason to want to buy from your dealership and from you.

Basic stuff: Explaining all the options you offer to make their purchase a memorable one — all the great reasons they will want to tell all their friends about and all the people they will recommend you to — because you did all the BASIC STUFF!

My know-it-all puffed his chest out and repeated, “I know all this.”

“Yes, we all know all this. But do you do ‘all this basic stuff' with every sale, with every opportunity?” I asked. There was silence. Mr. Why-are-you-wasting-my-time was pretty quiet, too.

You can know it all, but it is worth absolutely nothing if it's not implemented — implemented always, implemented without fail. This is after all, just basic stuff.

Every sale has five basic obstacles: No need, no money, no hurry, no desire, and no trust.

~ Zig Ziglar