Motivating the Sales Force at Express Auto

Express Auto, an automobile mega-dealership with more than 600 employees that represents 22
brands, has received a very discouraging set of survey results. Customer satisfaction scores have
fallen for the ninth straight quarter. Customer complaints include:
 It was hard to get prompt feedback from mechanics by phone.
 Salespeople often did not return phone calls.
 The finance people seemed “pushy”.
 New cars were often not properly cleaned or had minor items that needed immediate
repair or adjustment.
 Cars often had to retuned to have repair work redone.

Express Auto’s current Compensation System

Express Auto Team Responsibility of Team
1. Sales Force Persuade buyer to purchase a
car
2. Finance office Help close the sale; persuade
customer to use company
finance plan.
3. Detailing Inspect cars delivered from
factory, clean, and make
minor adjustments.
4. Mechanics Provide factory warranty
service, maintenance and
repair.
5. Receptionists/Phone Primary liaison between
service personnel customer and sales force,
finance and mechanics
Current Compensation
Method
Very small salary (minimum
wage) with commissions.
Commission rate increases with
every 20 cars sold per month.
Salary, plus bonus for each
Rs.5,00,000.00 financed with
company.
Piecework paid on the number
of cars detailed per day.
Small hourly wage, plus bonus
based on (1) number of cars
completed per day and (2)
finishing each car faster than the
standard estimated time to
repair.
Minimum wage.

Group Exercise:
1. Assess the current compensation plan of each Team, that are potentially related to
the customer service problems?
2. Offer your recommendation/suggestion to improve the compensation system in a
way that would likely improve customer satisfaction?