Growing Your Customer Share: How Leadership and Strategy Sell the Backend of the Business
Troy Ottmer
Operational Excellence Expert | Strategic Growth | Revenue & Profit Optimization | Leadership Development | Public Sector Bidding & Procurement | Operations Consultant | Published Writer | Change Management
In today’s competitive dealership environment, profitability increasingly hinges on the backend—parts, service, and support operations. As evolving technologies reshape customer expectations, the ability to sell the backend is both a challenge and an opportunity. Selling this essential component requires a balance of art and science, combining data-driven processes with strong relationships and strategic leadership. This article explores how leadership shapes this endeavor, the key players involved, and why selling the backend is pivotal for long-term success.
The Art and Science of Selling the Backend
The Science: Metrics, Processes, and Technology
The science of selling the backend involves structured processes, leveraging data, and employing efficient systems. Metrics like service absorption rate, customer retention, and parts inventory turnover serve as critical benchmarks. Dealerships that embrace cutting-edge technology, such as AI-driven diagnostics and customer relationship management (CRM) tools, gain precision and efficiency in their operations. For instance, a CRM system can track customer interactions, ensuring timely follow-ups, while AI diagnostics minimize service downtimes and maximize uptime for customers.
The Art: Relationships and Loyalty
Success in selling the backend isn’t purely mechanical or technology-driven. The art lies in building and maintaining strong relationships with customers. A successful backend sale is not just transactional but consultative. It solves problems, anticipates needs, and fosters loyalty. Communication, empathy, and a human touch are indispensable. For example, a consultative approach might involve recommending solutions tailored to fleet management challenges or seasonal maintenance requirements.
The Role of Leadership
Leadership serves as the backbone of backend success, aligning the dealership’s mission with customer needs and fostering a customer-centric culture. Here’s how leadership contributes to backend excellence:
Vision and Strategy
Leaders define strategies that position the backend to meet market demands. By analyzing customer needs, evolving technologies, and competitive landscapes, they craft a roadmap for success. For example, a leader might identify opportunities to integrate advanced telematics into service offerings, enhancing value for customers.
Empowerment and Development
Investing in people is essential for long-term success. Leaders equip their teams with comprehensive training, cutting-edge tools, and the necessary resources to excel. Acknowledging achievements and creating clear pathways for career advancement inspires motivation, cultivates expertise, and strengthens teams’ commitment to delivering exceptional service.
Collaboration Across Teams
The backend operates as a collaborative ecosystem. Leaders bridge gaps between sales, parts, and service teams, ensuring seamless communication and operational efficiency. Unified efforts across these functions create a consistent customer experience. For instance, by aligning backend sales with new product sales, dealerships can offer bundled solutions, enhancing customer satisfaction and profitability.
Driving Innovation
As technology transforms service models, leaders champion innovation. From AI-driven diagnostics to advanced telematics, they ensure teams adopt and leverage new tools to enhance backend operations. By fostering a mindset of continuous improvement, leaders position their teams to stay ahead in a rapidly changing market.
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Customer Advocacy
Great leaders keep customers at the heart of every decision. By emphasizing service excellence and prioritizing satisfaction, they ensure the backend is both profitable and integral to fostering lifelong customer relationships.
The Role of the Backend Salesperson
The backend salesperson is a critical player in driving the success of parts and service operations. Their role blends technical knowledge with relationship-building skills to deliver value to customers. Here’s how backend salespeople contribute to the dealership:
A critical responsibility of the backend salesperson is creating a sales funnel or “loading the pipeline” with new opportunities. By consistently identifying and pursuing new prospects, they ensure a steady flow of business to sustain and grow the dealership’s operations.
The Key Players in the Dealer World
Critical roles in OEM backend sales connect customers to the dealership’s technical expertise. These key players hold various titles, reflecting the unique approaches of different manufacturers:
These roles act as trusted advisors, ensuring backend services consistently meet and exceed customer expectations. Their expertise fosters strong, lasting relationships that drive profitability and customer satisfaction.
Building a Culture of Excellence
Leadership must cultivate a culture that allows backend sales teams to thrive. This involves:
Collaboration between backend sales teams and new product sales teams is another critical factor. By working together, these groups can identify opportunities for bundling services with new equipment purchases, creating a seamless and value-added experience for customers.
Conclusion
Selling the backend of the business is both an art and a science, with leadership playing a critical role in its success. By setting a clear vision, empowering key players, and fostering collaboration, leaders ensure that the backend remains a profitable and indispensable part of the dealership. Ultimately, it’s about creating value for both the dealership and its customers, paving the way for long-term success in an ever-evolving market.