In the last decade, the roles and responsibilities of business managers have evolved exponentially. This growth is because of technological advancements, legislation, and changing customer expectations. Business managers should not only change with the times, but it's imperative that they harness this growth for better performance.
To thrive in a rapidly changing environment, there are certain drivers and key performance indexes that have to be improved on by dealership business managers. These drivers when applied correctly, will produce F&I best practices. Productivity is the reason for these best practices, and as managers develop and understand these drivers, it is important to note that not all departments are cut from the same cloth.
F&I best practices for a dealerships's growth
The overall goal of identifying a dealerships best practices is to improve customers sales experience and the dealership's credibility. For a lot of customers, the experience is less than pleasant. So the main question that managers ask today is how to improve F&I departments, because achieving this will improve customer satisfaction and increase retention. What processes or procedures will lead to improved performance?
Normally, organizations use bench-marking as the main metrics in measuring performance against a data set — like a department — or against a better performing organization. Even though F&I experts are not in agreement about any specific best practices, there are some useful steps that dealerships follow.
A step in the right F&I direction!
Using Menus - A menu will help customers make better-informed decisions about a dealership’s products and services. Menus are usually rich with data, giving the customers varied choices. Although many experts warn against too much information on the menu. Keeping it simple and clear is the key to using this as a best practice.
Using Evidence Manuals - Visual Aids and other captivating tools are used to showcase reports, customer testimonials, case studies and more. The benefits of different F&I products are displayed to customers and this is one method that has been known to increase conversions.
Using Checklists - F&I checklist are an integral element of an F&I review. They help keep data in line and presented in a way that offers a clear-cut path for business managers.
Frequent Training - In every dealership there is a need for more F&I training. Developing and implementing effective training programs will help keep staff members abreast of current F&I standards and best practices.
There are so many processes that can be added to this list. The rule of thumb is utilize a partner that has a proven track record that will support your area of opportunities. Vanguard Dealer Services can help your dealership create effective F&I best practices for sustainable business growth.