[vc_row][vc_column el_id=”pageHeadingBanner”][pt_banner uniq_id=”5ac31cdc87ddc” social_buttons=”off” particles=”” height=”470″][pt_banner_item uniq_id=”5ac31d2fa7096″ text_color=”white” text_vertical_align=”bottom” background_image=”956″ link=”url:%23|title:start%20now||” custom_text_color_hex=”#ffffff” custom_heading_size=”60px” heading=”RECRUITING” text=”Recruiting A Gen Y Staff For Your Gen Y Customers”][/pt_banner][/vc_column][/vc_row][vc_row][vc_column css=”.vc_custom_1533902529134{margin-top: 100px !important;margin-bottom: 100px !important;}” el_id=”pageCOLL”][vc_column_text]
Recruiting A Gen Y Staff For Your Gen Y Customers
Gen Y members are in there 20’s through early 30’s. They are buying more than 27% of new vehicles sold today. By 2020, Gen Y consumers will be purchasing 40% of new vehicles sold, making them the largest generation of auto purchasers. Social media and review sites are influential for Gen Y’ers in determining what cars they will buy and where they will buy them. They are “technologically” dependent, have short attention spans and are better educated than any previous generation. Gen Y prefers to purchase their products online and have strongly influenced every other generation to do so as well. They feel they are “unique and special” and expect a lot of attention and recognition from your management team. They are currently outspending the Baby Boom generation. It is estimated that 50% of your online shoppers are Gen Y as they often do the “heavy lifting” of research and dealership selection for their parents as well as themselves. Gen Y individuals relate best to members of their own generation and it is especially difficult for members of other generations to effectively communicate with this text-loving generation.
Hire A Gen Y Sales Staff Now:
You will need to make significant changes to your sales department policies and processes if you expect to recruit and retain Gen Y customers. It is imperative that you hire members of this generation, as the first rule of sale for Gen-Y’ers is to find common ground. You also need to develop a new generation of sales consultants who will develop their own “book of business” over a 4-5 year period and become your go to sales associates for 15-20 car sales a month.
Your “To Do” Checklist For A Gen Y Friendly Environment:
- Sales Process: Do you know any 25 year-olds who like and are skillful at negotiations? They aren’t. You will need to adapt either a One Price strategy or very limited negotiations. With limited negotiations, you’ll need to set up a business rule of how much you’ll negotiate, call it $250. Use a third party pricing guide like Edmunds or KBB as your first pencil. Don’t expect this generation to do the negotiations; only allow your sales manager the option to negotiate and make it only one “pencil/drop” to speed up the process and have similar pricing for the majority of your customers.
- Compensation: You’ll will be killing your chances of hiring this generation if you’re paying “straight commission” or an on front-end gross. Using incentives for this generation to try to make as much money as they can off of everyone they meet and greet will not work. Create a pay plan that has a salary component: at least $30,000 annually against a commission plan. Reward volume, F/I and 5 star reviews. You’ll need a training salary of at least $2,500 per month if you expect to attract a better educated, gender-balanced sales force.
- Hours: Do you believe you can attract a better quality Gen Y salesperson if you structured a 40-45 hour work week? If the answer is yes, do it!
- Management’s Role: If your manager’s primary skill set is deal management, you’ll either need to do more training with them or get new managers. In the new world of automotive retailing they need to be effective trainers, conduct daily one-on-ones and provide recognition by catching people “doing things right.” Desking deals takes a back seat to personal development.
- Internet Sales Gen Y with their short attention spans are not going to hang out on your showroom floor waiting for their next “Up” to appear. You should only give them incoming internet leads and phone calls. If you have a BDC get rid of it for sales and direct those leads to qualified Gen Y’ers. If you don’t, it is unlikely you’ll be able to recruit people who look and act like most of today’s customers.
These are the minimal components necessary for appealing to Gen-Y customers and recruiting a Gen Y sales staff. Real change takes real change so don’t expect to recruit a younger sales staff without committing to transforming your sales model. The Rikess Group is here to transition your dealership into a Gen-Y friendly environment. Contact us today.[/vc_column_text][/vc_column][/vc_row]