Research Shows Dealers Looking to Change Sales Processes to Combat Turnover, Boost Profits & Improve Customer Satisfaction

March 22, 2018

CHICAGO — March 22, 2018 — MAXDigital, a premium end-to-end software provider for automotive dealers, released new dealer research on the subject of turnover and sales processes. In conjunction with Erickson Research, MAXDigital surveyed nearly 400 dealers across the United States in January 2018.

Key findings from the research include:

  • Turnover remains a problem for dealers. Nearly 80 percent of dealers in the study said turnover is an issue affecting their business, with 23 percent saying it’s a major issue.
  • Poor training and hiring processes contribute to turnover. According to dealers in the survey, inadequate or lack of training, and ineffective hiring processes were the biggest factors leading to turnover. Seven in 10 dealers said their salespeople have told them they don’t have enough training or information.
  • Hiring (good) salespeople is hard. Nine out of 10 in the survey said hiring good salespeople is difficult.
  • Dealers hire people with no experience. Seventy-six percent of dealers said they’ve hired people without automotive experience. And, 62 percent said they’ve hired people without sales experience of any kind.
  • High commission compensation still widespread. Ninety percent of dealers surveyed use high commission compensation, with 42 percent offering no fixed salary at all.
  • Dealers are looking to change their sales process.
  • Four in 10 dealers said they’re considering changes to their sales process in the next 12 months.
  • Moving to a more consultative sales process was the top change considered, followed by adding technology. Seventy percent of dealers in the study believe technology makes salespeople more successful and builds trust and confidence with customers.
  • The top drivers for a new sales process are higher close rates and increased customer satisfaction index (CSI) scores. Employee turnover is also a driving factor with more than 50 percent saying a change in sales process would help retain staff.
  • Many dealers are looking to adopt a low/no haggle pricing strategy. Four out of 10 in the survey said they are looking to adopt a low/no haggle pricing strategy.

“This study shows how dealers are re-examining their sales processes in order to align with the way customers want to buy,” said MAXDigital CEO Steve Fitzgerald. “Adopting a process that provides a streamlined car shopping experience will help dealers increase sales and profits and improve employee satisfaction and retention.”

Fitzgerald continued, “When salespeople are trained and equipped with product information, they’re more confident and able to do their job well. They’ll feel good and be more likely to stay long term.”

Nearly 400 U.S. dealers completed the survey in January 2018. Six 30-minute phone interviews were also conducted in February 2018. Respondents included General Managers, Dealer Principals, Used Car Managers, Owners, and Internet Managers.

Access the full report findings, including an infographic, here:

About MAXDigital
MAXDigital provides cloud-based software and mobile applications to the automotive industry. As the industry’s premium end-to-end software solution for automotive dealers, MAXDigital empowers thousands of dealerships across the U.S. to manage inventory, increase gross profits and sell more cars through digital retailing. Founded in 2001 with the FIRSTLOOK inventory management product, the MAXDigital suite of products includes the innovative MAX Ad®, a content generation and distribution system, MAX for Website®, a vehicle value and content creator for dealer websites, MAX Digital Showroom®, a real-time inventory and pricing tool for desktop and mobile that builds trust and transparency with customers, and MAX Path to Purchase™, an innovative software that removes hassle for customers and provides a streamlined car shopping process. For more information visit