How Emotional Intelligence Impacts Sales Performance and Employee Retention in a Dealership
One of the mysteries from the auto dealership world is the reason why general managers and general sales managers assume that low productivity and the resulting high turnover are inevitable using their sales teams. Research has revealed it is appropriate to apply the Pareto principle to salespeople whereby 20 % of all salespeople now make 80 % of all sales. That means 80 percent of the sales force fights over the remaining 20 % of the business not made by the top sales pros.
With so many salespeople competing for shares of these a small pie, the turnover rate in sales is actually very high. But many auto dealer executives are prepared to accept, as a price of doing business, the unending expenses of recruiting, selecting, and training the continuing flow of newcomers into the sales rank. They should, instead, recognize that poor people sales productivity and high turnover rampant in the market are the result of faulty hiring practices.
Research indicates that 80 percent from the essential competencies required for success in the workplace are emotional intelligence, which is far greater than IQ or personality traits. Emotional intelligence (EI) is a buzzword in the business world going back several years. By definition, EI is an individuals ability to recognize and regulate emotions in themselves and others. In practical application it is ones ability to know how our emotions and also the emotions of others impact action and gratifaction.
EI has no greater application than in a sales position. Research conducted recently by the Hay/McBer firm in Boston of Fortune 500 companies including AT&T, IBM, and PepsiCo found that the top 10 percent of the sales forces within the companies surveyed totaled nearly $6.7 million in sales as the norm was only $3 millionmore than 2 times the average or additional sales totaling 88 times the average salary of $42,000. The top 10 percent of those sales forces were quite strong in EI competencies as the average salesperson wasn’t.
In an objective study of more than 2,000 auto dealer salespeople designed to measure the EI competencies among those salespeople that were successful vs. those that were unsuccessful, the following five competencies were the most critical to predicting sales success and retention in the industry.
Intuition & Empathy. This is the salespersons awareness of the prospects feelings, needs, and concerns. This competency is important in a sales role for an additional reasons.
Attitude toward others: ones capability to look positively and objectively upon others
Understanding others: an intuitive sense of a prospects and/or customers feelings and perspectives and showing an active interest in their needs
Customer service orientation: the ability to anticipate, recognize, and meet customers needs
Results Orientation & Decisiveness. This is the salespersons adeptness at inducing desirable responses from the customer or prospect. This competency is important in a sales role for the following reasons.
Communication: sending clear and convincing messages which are understood by the customer or prospect
Influencing: using effective tactics and techniques for persuasion and desired results
Gaining commitment: ones ability to develop a motivation act
Self View. This is actually the salespersons level of courage and self-esteem providing you with thick enough skin to persevere through various obstacles they encounter through the sales cycle. This competency is important in a sales role for an additional reasons.
Handling rejection: ones ability to handle a no or a nonsale and to not take it personally and be able to recover and restart quickly to test again
Self-esteem: the higher the self-esteem the more passion and courage the salesperson may have in the social arena
Self Awareness. This really is knowing ones internal states, preferences, resources, strengths, and limitations. This competency is important in a sales role for an additional reasons.
Self-confidence: ones ability to have confidence in their own abilities and strengths to personally take control in achieving and exceeding their goals
Persuasiveness: ones capability to stand their ground in negotiations as well as in handling sales objections to exude to the customer or prospect that their product or service meets their needs
Competitiveness: ones need to win and be regarded as competent in the eyes of others, in addition to desire to be personally recognized for their accomplishments
Self Expectations. This is the salespersons emotional tendencies that guide or facilitate reaching goals as well as their sense of personal resolve for responsibilities. This competency is important in a sales role for an additional reasons.
Achievement drive: striving to improve or meet a standard of excellence we impose on ourselves
Initiative: readiness to do something on opportunities without getting told
Optimism: persistence in pursuing goals despite obstacles and setbacks
These are essential competencies in selling within the auto dealership industry. The salesperson who knows the product or service inside out will not succeed in the long term without possessing these essential competencies.
Since we implemented a difficult intelligence pre-employment profile to help in our sales buying process, our retention has jumped from 10 % to 77 percent. And not only do the employees stay longer, but they’re more productive, become popular more quickly, and require a shorter period in training, says Regina Roat, HR Director of Sterling-McCall Auto Group in Houston, Texas, that is part of Group 1 Automotive.
Auto dealers who’re forward thinking and realize they’re competing for top talent with other companies in their market are now implementing emotional intelligence into their selection process. Additionally, they are also providing emotional intelligence management development programs to assist their managers in leadership development, which has a major impact on increasing the manager/employee relationship and is a critical piece to improving employee retention.
With so many salespeople competing for shares of these a small pie, the turnover rate in sales is actually very high. But many auto dealer executives are prepared to accept, as a price of doing business, the unending expenses of recruiting, selecting, and training the continuing flow of newcomers into the sales rank. They should, instead, recognize that poor people sales productivity and high turnover rampant in the market are the result of faulty hiring practices.
Research indicates that 80 percent from the essential competencies required for success in the workplace are emotional intelligence, which is far greater than IQ or personality traits. Emotional intelligence (EI) is a buzzword in the business world going back several years. By definition, EI is an individuals ability to recognize and regulate emotions in themselves and others. In practical application it is ones ability to know how our emotions and also the emotions of others impact action and gratifaction.
EI has no greater application than in a sales position. Research conducted recently by the Hay/McBer firm in Boston of Fortune 500 companies including AT&T, IBM, and PepsiCo found that the top 10 percent of the sales forces within the companies surveyed totaled nearly $6.7 million in sales as the norm was only $3 millionmore than 2 times the average or additional sales totaling 88 times the average salary of $42,000. The top 10 percent of those sales forces were quite strong in EI competencies as the average salesperson wasn’t.
In an objective study of more than 2,000 auto dealer salespeople designed to measure the EI competencies among those salespeople that were successful vs. those that were unsuccessful, the following five competencies were the most critical to predicting sales success and retention in the industry.
Intuition & Empathy. This is the salespersons awareness of the prospects feelings, needs, and concerns. This competency is important in a sales role for an additional reasons.
Attitude toward others: ones capability to look positively and objectively upon others
Understanding others: an intuitive sense of a prospects and/or customers feelings and perspectives and showing an active interest in their needs
Customer service orientation: the ability to anticipate, recognize, and meet customers needs
Results Orientation & Decisiveness. This is the salespersons adeptness at inducing desirable responses from the customer or prospect. This competency is important in a sales role for the following reasons.
Communication: sending clear and convincing messages which are understood by the customer or prospect
Influencing: using effective tactics and techniques for persuasion and desired results
Gaining commitment: ones ability to develop a motivation act
Self View. This is actually the salespersons level of courage and self-esteem providing you with thick enough skin to persevere through various obstacles they encounter through the sales cycle. This competency is important in a sales role for an additional reasons.
Handling rejection: ones ability to handle a no or a nonsale and to not take it personally and be able to recover and restart quickly to test again
Self-esteem: the higher the self-esteem the more passion and courage the salesperson may have in the social arena
Self Awareness. This really is knowing ones internal states, preferences, resources, strengths, and limitations. This competency is important in a sales role for an additional reasons.
Self-confidence: ones ability to have confidence in their own abilities and strengths to personally take control in achieving and exceeding their goals
Persuasiveness: ones capability to stand their ground in negotiations as well as in handling sales objections to exude to the customer or prospect that their product or service meets their needs
Competitiveness: ones need to win and be regarded as competent in the eyes of others, in addition to desire to be personally recognized for their accomplishments
Self Expectations. This is the salespersons emotional tendencies that guide or facilitate reaching goals as well as their sense of personal resolve for responsibilities. This competency is important in a sales role for an additional reasons.
Achievement drive: striving to improve or meet a standard of excellence we impose on ourselves
Initiative: readiness to do something on opportunities without getting told
Optimism: persistence in pursuing goals despite obstacles and setbacks
These are essential competencies in selling within the auto dealership industry. The salesperson who knows the product or service inside out will not succeed in the long term without possessing these essential competencies.
Since we implemented a difficult intelligence pre-employment profile to help in our sales buying process, our retention has jumped from 10 % to 77 percent. And not only do the employees stay longer, but they’re more productive, become popular more quickly, and require a shorter period in training, says Regina Roat, HR Director of Sterling-McCall Auto Group in Houston, Texas, that is part of Group 1 Automotive.
Auto dealers who’re forward thinking and realize they’re competing for top talent with other companies in their market are now implementing emotional intelligence into their selection process. Additionally, they are also providing emotional intelligence management development programs to assist their managers in leadership development, which has a major impact on increasing the manager/employee relationship and is a critical piece to improving employee retention.
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