Case Study: A Major Automotive Manufacturer

High turnover in independent dealerships was impacting sales and customer satisfaction

Situation
Vehicle sales for this major automobile manufacturer depended on 3,000 sales consultants, working for independently owned dealerships across the U.S. The Client was concerned with high levels of turnover in the sales force and the resulting negative impact on customer satisfaction. While they had an incentive program in place to motivate dealer principals and sales managers, they needed to help their dealerships minimize the costs of hiring and training new sales reps. They wanted a program designed to recognize and retain the best sales consultants.

Solution
Maritz began with an analysis of the dealers’ existing data, to validate that top achievers were differentiated from other participants in sales, product knowledge, and sales satisfaction measures. The new program was designed to increase dealers’ support and recognition of top achievers. Dealers were encouraged to enhance longevity for top achievers by matching the program awards, thus doubling their value. Steps were taken to increase awareness of the recognition program internally, and with dealers. Maritz also recommended a more robust program-rewards website eliminating much of the paperwork required with the previous vendor’s process. Maritz Call Center employees were trained to provide better assistance to participants and guide them to the Client’s Intranet site for their future questions. A web-based survey was implemented to gather participant feedback.

Maritz provided in-depth analysis of performance data and survey responses, which led to recommendations that increased the reward payouts and ultimately increased the value of the program from the participants’ perspective.

Results

• The consultants who earned recognition averaged 129 new vehicle sales (NVS) while non-earners averaged only 76 NVS.
• Earners average length of service was 21.4 percent higher than non-earners.
• Maritz was able to validate the effectiveness of the dealer-matching process, in terms of improved tenure and sales satisfaction among matching dealerships. The average non co-funding dealerships had a much lower average length of service and percent of sales consultants qualifying for customer satisfaction criteria than did cofunding dealerships.