We recently performed two studies in partnership with a 30+ location auto group on the east coast. Here are the encouraging results of those studies, which shows why the most successful dealers view training as an investment that pays for itself many times over rather than an expense.
Study #1: Return on Investment
We tracked store-level performance for all rooftops in the group, including:
- Inbound Phone Leads
- Appointment Set & Appointment Show Rates
- Units Sold & Gross
- Investment in Applied Concepts Training
ROI on Investing in Training
The 20 stores that trained with Applied Concepts invested an average of $1,253 per month to train heir team. They achieved a 5% increase in Appointment Set and a 15% increase in Appointment Show. The net result was 10 more units sold per rooftop. That equates to an additional $15,000 of gross from an $1,253 training investment.
That is a 10.9x ROI on their training investment (they spend $1,253 and gained $15,000 of gross, for a net gain of $13,747; if you divide $13,747 by $1,253 = 10.9x ROI).
Control Group - No Investment in Training
The 10 stores that did not complete training did not see improved performance. This means that the 10.9x result was not a result of improved market conditions or other factors unrelated to training. In fact, all of their performance metrics declined.
The auto group we partnered with concluded that the training was achieving significant ROI, and as a result Applied Concepts became a required training partner for every single store in the group. We've been working with them for the past 2+ years.
Study #2: Skill Development
In addition to measuring the ROI of their training investment, we also partnered with the group to measure the skill development of their team members.
Core Skills
We graded calls from the 20 rooftops that completed 3+ months of training with Applied Concepts. We looked at their improvement on what we consider "Core Skills" — i.e., the skills that every single sales rep must master in order to succeed in their role.
We graded 5 criteria — "Did the sales rep . . .
- Identify their department?
- Provide their name and contact information?
- Ask for the customer's name?
- Ask for the customer's contact information?
- Ask for an appointment?
Every single store saw significant improvements on these metrics. Below is a quick summary of the average results:
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Advanced Skills
For the 11 rooftops that completed 6+ months of training with Applied Concepts, we also looked at "Advanced Skills"—i.e., skills that are central to developing meaningful relationships with customers. These are the skills necessary for a sales rep to take the next step in their professional development.
We graded 5 criteria — "Did the sales rep . . .
- Actually answer the question posed by the customer or try to deflect?
- Ask good discovery questions?
- Introduce personalization into the conversation to drive customer engagement?
- Act professional in speech, cadence, tone, and other criterion?
- Appear as a subject matter expert?
- Use a call-to-action appropriate to the customer?
On these advanced skills, the results were equally concrete. Below is a quick summary of the average results:
How can we help?
These results are not unique to only one customer. You can see similar improvements in your performance and your team's skillset. Learn more HERE or connect with us HERE for a free assessment.
