In 2002 Oakland A’s General Manager turned the world of baseball upside down by applying “SaberMetrics” to the squad selection process.
For those who’ve yet to see Moneyball, it’s the true story of how Billy Beane, (played by Brad Pitt in the movie), transformed “average” players and “benchwarmers” into what became one of the most winning teams in baseball history.
If Mr. Beane were putting together an Internet sales team today, I wonder which metrics he would consider most important ?
I’m sure he’d want to know the “sales stats” of all potential team members. Not just their deliveries but rather their contribution to the entire operation.
Note: In the example below, I’m assuming most stores today know precisely how much they’re spending to generate each Internet lead. (Without this information, you will not be able to make the ROI calculations).
I bet he’d also want to know the answers to questions like these;
1) What percentage of their deals have trades?
2) What’s the finance penetration?
3) Extended warranty penetration?
4) Life and Disability Insurance penetration?
5) Protection Package penetration?
6) Average accessory sale per delivery?
7) CSI Score?
I wonder how he might create a pay plan that rewarded those who consistently generate the highest ROI rather than just those who put up the most stickers? (Or perhaps some combination of the two?)
Would he also apply the ROI formula above to sales calls and ups?
What about tracking the number of deals each salesperson delivers for the dealership that do not originate from ups, sales calls, or Internet leads? Like referrals, repeat business, and new customers generated from the salesperson’s own “Social Media Marketing” activities. (For example; blogging, Facebook, Twitter, Google Plus, YouTube, Direct Mail, Email Marketing, Newsletters, and Online Forums)
In 2002 the Oakland A’s disrupted more than a century of conventional wisdom about how to build a winning baseball team.
Is it possible to build a winning Sales Team at your dealership using a system similar to SaberMetrics?
You bet it is.
I see it happening in many stores today.
When you take a hard look at the performance of your entire team, you may discover you have one or two potential “Eagles” who, because of their low sales volume, are warming a bench in the sales department.
[I am referring to salespeople who consistently generate an exceptionally high ROI using a calculation like the one in the example above.]
What do you do with such a person once you find them?
How many leads should you give them?
Keep feeding them until they reach the point where their ROI starts to decline. For some this will be might be 10 cars a month. For others 15, 20, 25 or more.
The days of evenly dividing up leads and sales calls, (or having an up rotation), are long gone.
Leads, sales calls, and ups need to go to those who YOU KNOW will generate the highest return on your marketing investment.
If you want to break all-time net profit records for your store in 2012, this in one way you can help make that happen. (Without spending any money).
Identify your Eagles
…and have an “Evangelist” feed them.
Oh… One more thing.
Feeding your Eagles can be very disruptive when first implemented.
If you’ve seen Moneyball, no further explanation is needed. (You get it).
If you haven’t seen it, I’d urge you to do so this weekend.
It might turn out to be one of the best Automotive HR seminars ever.