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Converting Accountability into Revenue

Converting Accountability into Revenue

November 15, 2024

5 minute Read

Paint a comprehensive picture using lessons from top car washes.

By Kyle Doyle, Vice President, Rinsed

Like good health, accountability tends to be noticed only when it is missing. And like good health, it can be difficult to define and pin to an easy set of paint-by-number instructions. 
It’s a crucial part of the picture, though, as Rinsed has seen first-hand. When analyzing scores of car washes with high member counts and sales, a culture of accountability seems to be one of the most common elements among them. 

But how do we peel back its nuances, as well as its negative associations with fault-finding and blame? 

Accountability is not something you do; it is a by-product of a set of behaviors within your organization. In short, accountability means clearly defining what high performance looks like, being specific about the plan to achieve that, and regularly following up on results. 

In his book, “Sales Management Simplified,” Mike Weinburg points out a truth he has learned from working with hundreds of sales teams: “The level of the team rarely, if ever, exceeds the level of the leader.” That doesn’t mean you have to personally be the best frontline sales associate; it means you have to be the one defining what high performance looks like and shaping the plan to achieve it.

Let’s now get into four key behaviors that drive accountability and see what this looks like in the day-to-day life of a car wash.

1. Clearly Defining Goals and Agreeing to Them
When it comes to sales goals in the car wash industry, one of the best examples and the key statistic that we always start with at Rinsed is the conversion rate. Almost all high-performing car washes have a conversion goal and obsess over the conversion rate. And, yes, I mean “obsess.” It is not something viewed out of mere curiosity. Not hitting the target is like a conveyor chain that breaks — it needs to be fixed right away. 

A conversion rate target needs to be set for the company, for individual locations and, ideally, for each salesperson. At a minimum, the goal should be at least 10%. For higher-performing sites, this should be 15-20%. This target should also change based on promotion. The deeper the promotion, the higher the conversion rate should be.

2. Creating Constant Visibility to the Data that Defines Performance
Once expectations are set, it is pivotal that everyone knows what is happening in real life. At car washes, this can come into play at the pay stations. Traditionally, the challenge has been that there is no visibility into what is happening at the POS. But it is vital that you gather as much data as possible in order to make this “moment-of-sale” more transparent. 

This doesn’t mean giving everyone the P&L, but it does mean having daily retail car counts, member signups and conversion rates by salesperson. Anything else allows individuals to hide in the aggregate. Also, if these sales stats are lagging, such as something compiled at the end of the week or month, then it cannot be corrected fast enough and leaves the door open for excuses and faulty memory about why the target was missed.

Having audio recordings helps identify what is happening in reality versus expectations, as well. Rinsed offers Salespath, which has an audio recording functionality built in that can be enormously helpful.  Or, some operators use security cameras and even Ring doorbells to get this audio from the frontline. 

3. Clearly Defining Consequences
Let’s start with the good: hitting and surpassing the targets we defined. First, make sure that your compensation program represents solid motivation for sales associates to hit and exceed goals — and be generous. The research shows that the average member has a lifetime value of $200-$400. Even if we stay on the conservative end of that spectrum, it means that 1,000 members are worth $200,000 in revenue over time. So, if you consider paying another $1 in commission, or pool it as a reward or bonus, that is only a cost of $1,000 against the $200,000 in revenue. Again, there is a lot to this, but lean toward generosity. It pays dividends for you. And in addition to individual compensation, don’t forget the team rewards and pizza parties and other ways of celebrating wins.

On the flip side, how do you define the consequences when someone fails to hit the target? To start, it should not be punitive. Instead, it should be in the form of coaching. Very often, a low conversion rate is simply someone not giving the presentation as it was taught. This usually takes the form of someone reverting to, “What do you want today?” It might also stem from someone letting all the rejection affect them personally to the point they stop offering the membership. Or it might simply be skill issues like low volume, mumbling or an unfriendly approach. (This is where audio samples can be hugely helpful.) Either way, these are things that you should provide coaching for. 

4. Scheduling Reviews and Following Through 
Finally, schedule time to review the sales data as a team, compare that to the goals, and then follow through on the consequences. For this reason, it is critical to hold regular meetings where all sales associates are included. This meeting is another very common element among all high-performing car washes. Its absence is equally common among low performers. Many groups struggle to hold regular sales meetings because of the nature of shift work and not having everyone there at the same time. One solution is to hold the meeting via Zoom and to record it for those who are not working at that time.

In conclusion, accountability doesn’t have to be a topic that makes your team squirm and point fingers. Creating accountability is not about blame and fault finding. It is about clearly defining what high performance looks like and being equally clear on the plan to get there. It takes work, but it is more than worth the effort.

Rinsed is a Champion of International Carwash Association, inclusion in Champions Corner is an ICA Champion’s benefit at the Elevate level. Learn more about the Champions program.

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