In an industry where the default setting for change is stuck in neutral, it’s time to hit the gas pedal on a game-changing concept: gender balance in dealership sales and service teams. As it turns out, a balanced mix of men and women team members is the ultimate performance upgrade that turns tire kickers into loyal buyers faster than you can say, “Do you want the extended warranty with that?”
Yes, experts have discovered that gender diversity in sales and service teams could be the secret sauce to boosting profits.
Who knew that having a team that actually reflects the people buying the cars could be good for business? It turns out, when you’re not selling cars like it’s a boy’s-only poker night, everyone wins—especially your bottom line.
Gone are the days when buying a vehicle meant enduring a testosterone-fueled gauntlet of firm handshakes and impenetrable car jargon. Now, you’re just as likely to encounter a female salesperson or service advisor who can explain the intricacies of a transmission while also empathizing with your crippling fear of parallel parking.
Numerous studies show advantages to gender-balanced dealership sales and service teams.
- Companies in the top quartile for gender diversity are 21% more likely to experience above-average profitability. (McKinsey)
- A study by the Center for Talent Innovation found that companies with more women in leadership roles are more likely to have higher customer satisfaction scores.
- This Quota article about women missing from leadership roles, cites a 2021 Xactly study which found that women in sales roles often outperform their male counterparts due to their collaborative approach and ability to build strong customer relationships.
Slow adoption keeps the industry stuck.
The auto industry has repeatedly faced criticism for not adopting gender-balance throughout dealership operations. Several factors contribute to this:
- Cultural norms and stereotypes: Dealerships are male-dominated, with ingrained stereotypes about gender roles.
- Management practices: Conscious or unconscious biases or beliefs remain today that men are more likely to be hired or promoted within sales teams.
- Retention and advancement: Women continue to face challenges due to a lack of mentorship, professional development opportunities, and supportive work environments.
- Lack of representation: With fewer women in senior positions or visible roles within the industry, there are fewer role models and mentors for women considering careers in car sales, perpetuating a cycle of underrepresentation.
- Consumer misperceptions: The stereotype that male sales and service people are more knowledgeable about cars influences customer interactions.
- And there’s one more…
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Resistance to change is real.
You’re probably wondering now, with all signs pointing to gender balance being a net positive, why hasn’t the industry adapted?
The auto industry is resistant to change for the same reason your great-uncle refuses to upgrade his flip phone: they both believe that if something was good enough in 1999, it should be good enough forever.
In a world where innovation usually means progress, the auto industry seems to have taken a detour down Memory Lane, stubbornly clinging to outdated practices like a security blanket. Whether it’s an irrational fear of the unknown or a deep-seated belief that “new” is just a code word for “expensive,” the industry has perfected the art of doing nothing while hoping for everything to stay exactly the same.
There’s another reason the auto industry’s been resistant to change, and it’s less about nostalgia and more about an irrational belief that the presence of women might somehow disrupt the sacred rituals of salesmanship – rituals like wearing ill-fitting suits or explaining torque to someone who didn’t ask.
Women represent change. This fear is the industry’s best-kept secret, as if the sight of a competent female salesperson or tech might cause the wheels to fall off or the engines to seize up. Instead of embracing the obvious benefits of gender diversity, some have decided to treat women in the workplace like an exotic species—fascinating from a distance, but far too risky to invite into the showroom.
One of the ways to combat resistance to change is to illustrate how change will benefit all those involved. There are very positive outcomes with gender balance in dealership sales and service teams and a value in dealerships prioritizing recruiting and retaining female sales and service professionals.
Advantages of gender-balanced dealership sales and service teams
So, let’s pop the hood on this topic and see why having a mixed-gender pit crew might just be the tune-up the car industry needed!
1. Improved customer service and satisfaction
One of the most compelling reasons to create more gender balance in the team is the positive impact it has on customers. Female customers, who influence over 80% of car-buying decisions, often report feeling more comfortable working with female sales and service reps. Many women have experienced condescension or dismissive treatment from male salespeople in the past. Having female sales staff helps put female customers at ease and creates a more welcoming environment.
For male customers, female salespeople are often perceived as less aggressive and more focused on understanding customer needs rather than pushing for a quick sale. This consultative, low-pressure approach tends to result in higher customer satisfaction scores. Dealerships that have increased the number of women on their sales teams frequently see a measurable boost in CSI, online ratings and repeat business.
2. Expanded talent pool
In a sector starved for skilled workers, savvy dealers tap into the full talent pool, not just half of it.
By actively recruiting women into sales and service roles, dealers can be more selective and build higher-performing teams.
Many women who may not have previously considered car sales or service as a career bring valuable skills from other industries. By successfully attracting and retaining female talent, dealers often find they are able to build more well-rounded, capable sales teams.
Female salespeople in leadership positions can serve as role models and mentors for other women on the team. This cross-pollination of talent and mentorship creates dynamic, high-performing teams that challenge industry norms.
3. Improved financial performance
My sister Lisa once told me she wanted to buy a car, but dreaded dealing with the stereotypical shifty salesman. “Why can’t they hire more women?” she asked. Little did we know, Lisa’s offhand comment was actually backed by cold, hard stats.
- Higher Performance: Teams with an equal gender mix perform better in terms of sales and profits compared to male-dominated teams. Profits increase as the share of women in the team increases up to 50%.
- Better Deal Closure: Women tend to close deals at higher and faster rates than men. In a study by Gong, women’s win rates were found to be 11% higher than men’s.
Turns out, car dealerships with more female sales staff are like those annoyingly perfect families in Christmas cards – they just do better. It’s not just cars, either. Across the board, from tech startups to Fortune 500 companies, the ones with a healthy mix of men and women are raking in more dough than their boys’ club counterparts.
4. Enhanced reputation and brand image
Consumers, particularly people under 40, often prioritize equality in their purchase decisions. They prefer to do business with retailers that don’t seem to have missed the memo on equality. They want to see a balanced mix of faces when they’re dropping a year’s salary or more on a new vehicle.
A visibly diverse sales team signals that the dealership values different perspectives and is in touch with the needs of a broad customer base.
This positive brand association can extend beyond just attracting customers. It can also help with recruiting efforts, vendor partnerships, and manufacturer relationships. As diversity becomes a key performance metric for many companies, dealerships that lag behind will eventually find themselves at a competitive disadvantage.
5. Improved workplace culture
Male-dominated sales environments can sometimes foster an overly aggressive, competitive atmosphere that some find off-putting. Greater gender balance tends to result in a more collaborative, supportive team dynamic. This can boost morale, increase job satisfaction, and reduce turnover – a chronic issue for many dealerships.
Creating an inclusive workplace culture enhances a dealership’s appeal to employees. This benefits the business in two key ways:
- Improves recruitment of new talent.
- Increases retention of existing staff.
As the dealership’s reputation for diversity and positivity grows, it naturally attracts skilled candidates. Simultaneously, current employees are more likely to stay, resulting in a more experienced and stable sales team.
Breaking down stereotypes
Actively promoting women in car sales and service roles helps break down persistent stereotypes about gender roles. As more women succeed in these positions, it challenges outdated notions about who can excel in dealership operations. Encouraging more women to consider careers in automotive retail has a ripple effect in inspiring younger generations to pursue their interests regardless of gendered expectations.
Within the dealership itself, seeing women in visible sales roles can also help shift internal perceptions. It becomes easier to imagine women in leadership positions, potentially leading to more balanced representation in management ranks over time.
Challenges and implementation
While the benefits of gender balanced dealership sales and service teams are clear, realizing those benefits is not without its challenges.
It often requires examining and revising recruitment practices, workplace policies, and company culture to successfully attract and retain female sales and service professionals. This could involve addressing issues like pay equity, flexible scheduling options, mentorship programs, and clear paths for advancement.
It’s also crucial to approach diversity efforts thoughtfully and avoid tokenism. The goal should be to create a genuinely inclusive environment where all employees can thrive, not just to hit arbitrary quotas. This requires ongoing commitment from leadership and a willingness to listen to and address the concerns of employees from underrepresented groups.
The automotive sales and service landscape is evolving.
Organizations that embrace gender diversity in their sales teams are positioning themselves for success. From improved customer satisfaction to enhanced innovation and financial performance, the benefits of building more balanced sales and service teams are numerous and significant.
As the industry continues to face disruption and changing consumer expectations, those organizations that can draw upon diverse perspectives and talents will be best equipped to adapt and thrive. By making a concerted effort to recruit, retain, and advance women in sales and service roles, forward-thinking dealerships can gain a powerful competitive advantage while contributing to greater equality in the automotive sector as a whole.
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