[fazayal]

You enter a car/bike showroom and you are welcomed by a Sales Consultant/Sales Executive/Sales Advisor/Sales Officer. Well, person doing same job but known aby different titles depending upon which OEM showroom you visited. I would stick with the terminology of Sales Consultant for this piece.

It is a job which needs a good amount of skill. Grooming, communication skills, product knowledge, brand awareness, negotiation skills, competition handling, closing skills, telephonic skills and even a bit of technical knowledge is required to be a good Sales Consultant.

People are off course not born with these skills. These skills are acquired by experience and training.

Training for Automobile Dealerships has evolved a lot in the past 15-20 years. Technology also plays a big role nowadays. Let us see how training works.

OEM Training Department : All OEMs have a department which is responsible for managing training of the dealership showroom employees. There would be a training head and under him/her there would be Regional or Area Training Managers. The numbers would depend on the OEM dealership footprint. For an OEM like Maruti there would be multiple training managers even for one state while for smaller OEMs there could be one training manager handling complete South India. These people are responsible for developing the sales force in the dealership. Many times they are also responsible for hiring of good manpower in the dealership. They prepare the training calendar and do regular manpower audits at the dealerships.

Training Agencies : Most of the training provided to the dealership manpower is by dedicated training agencies. These agencies mostly have tie ups with multiple OEMs. However, some dedicated manpower is given to an OEM to manage their training operations. There would be project managers, content developers, training administrator, trainers etc. on-rolls of training agencies working for an OEM. Usually based out of OEM office.

Now, different OEMs have different models. For companies having smaller volumes, they usually work with only one agency.

For companies having larger volumes they work with multiple agencies. Regional Training Managers can take a call they want to work with which agency for their region.

The project manager and his team coordinates with the OEM Head Office, OEM Regional Office, Trainers and even with the dealerships.

Some OEMs insist on having dedicated trainers from the agency i.e the trainer would not work for any other OEM till the time contract expires. While some OEMs are flexible. They don't care if the trainer works for some other OEMs as well. If OEMs ask for dedicated trainer then agency usually asks for minimum billing commitment. Which I feel is fair.

Trainers can be working on- roll of the training agency, on retainership (project basis) or as free lancers and paid on basis of number of days trained.

Before being allowed to train the dealership team, the trainer is certified by the regional training manager. Some OEMs have a very strict and systematic criteria which includes written tests, interviews and mock presentations. While some OEMs don't have a strict process. Regional training manager speaks with the trainer, asks him/her to present a few slides from training module and then certifies if they are satisfied. Usually regional training manager would prefer if trainers are local. So if a trainer handles West region taking care of Maharashtra, Gujarat and MPCG, they would prefer to have a trainer in Mumbai, Ahmedabad, Pune, Nagpur and Bhopal/Indore. This way trainer can train in regional language and even travel and boarding/lodging cost is on lower side.

Some of the well known automobile training agencies in India are SLS, Sewells, TTI Global, NIIT, Centum etc.

Different types of training There are different types of training programs that are conducted by the training agencies depending upon need of the OEM. There is usually very high attrition at dealerships among sales staff. Hence, there is always some new staff. Induction training is required to be completed for these new guys.

Induction program usually is of 2-3 days and consists of following topics:

1. About the OEM and brand
2. Grooming
3. Opening the call
4. Need analysis of customer/Probing
5. Demo of the car (All OEMs have their versions of a 6 step demo)
6. Test Drive
7. Close the call
8. Follow up
9. Delivery
10. Post Sales Follow Up
11. Basics of Automotive Technology
12. Basics of Insurance
13. Basics of Finance
14. Warranty and Extended Warranty
15. Product knowledge about the cars sold by OEM
16. Competition Handling etc.

The training is usually done in a hotel. At times it can also be done at dealership or OEM office if they have the infrastructure available. Advantages of conducting training at dealership is that trainer can teach how to give demo on the real car displayed at showroom. Sales Consultants can also be asked to give demo on the car and their skills checked. Disadvantage is that when in showroom, Sales Consultants can be called by the Manager for any work or when one of their customer walks in. So, they are not in proper focus.

Training is given through PPTs, Videos, Roleplays, Case Studies etc. They are even given study material. After the training there is usually a roleplay done and trainer evaluates if their skill level is enough. There is also a test done to check their knowledge level. Basis of their performance in Role Play and Test, the Sales Consultant are certified. Some OEMs also do a check a few days after the training to observe if the learning is still there or not.

Most OEMs give targets to dealerships of having a particular percentage of certified Sales Consultants. Some OEMs are very strict that only certified Sales Consultants can attend the customer.

Other than this induction training there are more training programs like Sales Expert Training, Premium Customer Handling Training, Team Leader Training, Refresher Training, New Product Launch Training etc.

There is lots of work to be done whenever a new product is launched as ideally each and every Sales Consultant has to be trained before the launch of the product. New product launch training is the most sought after training as Sales Consultants get to see a car before the launch!

Internal Trainer : The above mentioned classroom training don't happen very regularly but skills need to be regularly polished. Hence, many OEMs now mandate that every showroom should have an Internal Trainer. These internal trainers are on rolls of the dealerships and must have usually worked as senior Sales Consultant or Team Leader and have good knowledge about product and processes. They should off course have good presentation skills as well. Many OEMs also certify these Internal Trainers and could have a training program and certification process for them. These Internal Trainers usually take 30-60 mins training every day during morning meeting and cover the topics which are hot. It could be a new offer, new product launch by competition, etc.

They also train and coach new Sales Consultants. They could also shadow new Sales Consultants or poor performing Sales Consultants and coach them. They also coordinate with training agency and regional training manager for training nomination and training needs of the dealership manpower.

Digital Training : With mobile internet becoming faster and cheaper in the past few years, there has been lots of usage of technology in training. Almost all OEMs have a Learning Management System (LMS) for their dealership staff. Every dealership employee has a login and password and can use LMS to complete E-Learning modules. Many E-learning modules are also made mandatory by the OEM. There is also mobile app version of the LMS in most cases and it is mandatory for every Sales Consultant to have this app in their phone. There are lots of advantages of having a good LMS.

1. Savings on travel, boarding, lodging cost of trainers and dealership manpower.
2. In a class room training everyone have to be present at a particular place at a particular time. E Learning is flexible. Person can do it as per their convenience.
3. Learning can be done off office hours. Sales Consultants complete their learning while traveling in Metro or on holidays. (Something loved by dealerships!)
4. Information can be given to everyone in a short period by just uploading the module on the LMS.
5. Assessments and Feedbacks can also be taken through LMS.
6. Better analytics

During this time of pandemic with travel not possible, digital training has taken huge strides.

With classroom training not possible most of the trainer based training is done through Google Meet, Microsoft Team, Zoom, Cisco Webex etc. nowadays.

I have tried to give a broad idea of how things work. There can be some variations depending on OEM to OEM.

[GTO]

Thanks for sharing, man! Very informative. Linking to 2 threads that will be of interest to those reading up on car dealerships:

Life as a car salesman (Behind the Scenes: A salesman's life in a car dealership)

Behind the scenes (Behind the scenes at a car dealership)

Life as a customer care exec (Life as a customer care executive at a car dealership)

[saikarthik]

Originally Posted by fazayal

OEM Training Department : All OEMs have a department which is responsible for managing training of the dealership showroom employees.

Training Agencies : Most of the training provided to the dealership manpower is by dedicated training agencies.

Advantages of conducting training at dealership is that trainer can teach how can also be asked to give demo on the car and their skills checked.

Digital Training : With mobile internet becoming faster and cheaper in the past few years, there has been lots of usage of technology in training.

Superb compilation. Thank you for very informative post.

Here are my 2 cents,

Depending on the OEM, the trainings are handled and organized by a particular department, but the training during launch of a new product is a very focused activity which is for a couple of days in different batches or online classrooms.

The organizer will pull in all the trainers from different departments like

• Marketing & Product planning - for price and positioning related topics.
  
• Brand managers - for emphasis on differentiation and increasing brand perception/value.
  
• R&D - for technical presentations on key marketable features. They come from all areas (Powertrain, Electrical and Electronics, Interior and exterior trims).
  
• Designers - To detail out the design language on how to translate the design features to customers in understandable language and to put some objective value to looks.
  

Though it is a elaborative process of training the sales executive, it depends on the person. There are few who excel on their own interest, will offer a pleasant & fulfilled buying experience to customers.

With more knowledge on cars, features , finance and general awareness in customers. It really comes down to the executive to hone his skills and be up to date.

[Maverick Avi]

This is good to know. And like most of the processes laid down by companies it looks good to showcase to your parent organisations through a PowerPoint presentation. Unfortunately my recent dealership experiences do not instill much confidence in me to believe that these are getting implemented successfully at ground level.

[fazayal]

Originally Posted by Maverick Avi

This is good to know. And like most of the processes laid down by companies it looks good to showcase to your parent organisations through a PowerPoint presentation. Unfortunately my recent dealership experiences do not instill much confidence in me to believe that these are getting implemented successfully at ground level.

I agree. Even after spending crores of rupees on training, lots of staff of the dealership doesn't even gets basics right!

[Jeroen]

Thanks, very informative.

What kind of formal education is there, if any, on becoming a car sales person? Are there are colleges / courses that would help? E.g.here in the Netherlands we have various automotive courses, from college to bachelor and evenmaster degrees. Most sales people would have at least a 2-3 year college degree.

What about technicians. Any insight into their formal educationa NDO subsequent training and education takes place?

Thanks,
Jeroen

[fazayal]

Originally Posted by saikarthik

Depending on the OEM, the trainings are handled and organized by a particular department, but the training during launch of a new product is a very focused activity which is for a couple of days in different batches or online classrooms.

The organizer will pull in all the trainers from different departments like

• Marketing & Product planning - for price and positioning related topics.
  
• Brand managers - for emphasis on differentiation and increasing brand perception/value.
  
• R&D - for technical presentations on key marketable features. They come from all areas (Powertrain, Electrical and Electronics, Interior and exterior trims).
  
• Designers - To detail out the design language on how to translate the design features to customers in understandable language and to put some objective value to looks.
  

Dealership sales staff of a OEMs is in thousands all over the country. All these people would not have time or bandwidth to do training for Sales Consultants during new product launch. I have handled many new product launches. The training to Sales Consultants is given by training agency trainers. Regional Training Manager might attend the pilot session or so.

OEMs might have a session for dealer owners or dealer Sales Heads before launch of the product where all these people might present the strategy, but not for Sales Consultants for sure.

[Raghu M]

Problem is, after working so hard on getting a draft and SOP for L&D, most of the top companies fail miserably in even handing out a customer the basic specs of a car/bike. I have not met any salesman who had the knowledge and answers to basic questions yet.

[Maverick Avi]

Originally Posted by Jeroen

What about technicians. Any insight into their formal educationa NDO subsequent training and education takes place?

Thanks,
Jeroen

From what I know lot of technicians gets recruited from ITIs(Industrial Training Institute). These are government institutes having specialisations in various fields such as print technologies, automobiles, electronic repair etc. Aspirants can directly apply after 12th class and there is no need for graduation.

[fazayal]

Originally Posted by Jeroen

Thanks, very informative.

What kind of formal education is there, if any, on becoming a car sales person? Are there are colleges / courses that would help? E.g.here in the Netherlands we have various automotive courses, from college to bachelor and evenmaster degrees. Most sales people would have at least a 2-3 year college degree.

What about technicians. Any insight into their formal educationa NDO subsequent training and education takes place?

Thanks,
Jeroen

Hi Joroen. An ideal candidate as an automobile Sales Consultant is someone who is a graduate, has good communication skills and 2-3 years experience in same industry. However, its always good to have a mix of varied manpower on basis of experience, industry and education. At times, its good to get a fresher or candidate from another industry as they don't come with any baggage and can be trained. I knew a dealership which actively hired women who were full time home makers for a long time and were looking for a job after years of break from formal employment. Most of these ladies used to be dedicated and good performers.

With so many engineering and management colleges mushroomed in India in last decade or two, it is not uncommon to see engineers and MBAs from low tier colleges working as Sales Consultants in car dealerships.

ASDC was formed a few years ago and they conduct a few courses. I haven't personally experienced anyone trained by ASDC so can't comment on their quality.

https://www.asdc.org.in/

For technicians good old ITIs (Industrial Training Institute) are best. ITIs
conduct many courses for automotive technicians (mechanical, body shop, electrical, air conditioning etc.). Many OEMs do tie ups with ITIs and sponsor labs, equipment and even manpower at times. They get the passed students placed in their dealerships. I had visited an ITI in Ahmedabad which had courses in collaboration with Eicher and Toyota. I was mighty impressed by their labs and equipment. This was around 10 years back though.

[Stribog]

Originally Posted by fazayal

Dealership sales staff of a OEMs is in thousands all over the country. All these people would not have time or bandwidth to do training for Sales Consultants during new product launch. I have handled many new product launches.

.

Could you from your perspective explain this phenomenon of some OEM's having consistently poor pre sales experiences and a few providing top notch for the Majority of the time.

Tata I would take as a stellar example of the former, albeit based on my anecdotal experience. Been to Tata showrooms many times (for my own TD's, enquiries or along with friends and family) and most of the time the experience is underwhelming. I simply believe that the Tata SA's lack the fire a Maruti, Hyundai / Kia or even VW SA's bring to the table.

[fazayal]

Originally Posted by Stribog

Could you from your perspective explain this phenomenon of some OEM's having consistently poor pre sales experiences and a few providing top notch for the Majority of the time.

Tata I would take as a stellar example of the former, albeit based on my anecdotal experience. Been to Tata showrooms many times (for my own TD's, enquiries or along with friends and family) and most of the time the experience is underwhelming. I simply believe that the Tata SA's lack the fire a Maruti, Hyundai / Kia or even VW SA's bring to the table.

Dealerships which would pay well would get good manpower. It's as simple as that in my opinion. If dealership won't pay good salaries and incentives, a good Sales Consultant would switch. If you won't pay well you would either get poor manpower or good freshers who would leave once they have learnt tricks of the trade.