These are fast, changing times for dealerships. Profit margins in recent years have evolved from a model that generates a profit from selling cars to profitability from financing, incentives, F&I sales, and customer retention through the service drive. An industry that once roared with only steadfast brick-and-mortar stores has evolved to inclusion of innovative customer experiences, and streamlined, easy, minimal contact purchases.
Executing on F&I Products
One thing that remains consistent even in changing times is that dealerships that use resources efficiently and effectively and execute on sound F&I strategies always come out ahead. Dealerships that are focused on aftermarket product sales not only survive but prosper. An effective strategy is of paramount importance, as dealerships need to deliver value by way of the products they offer to customers, and a win-win situation is afforded by products that benefit the customer and help develop a relationship with the dealership and its service department. It is certainly the best way to make those customers ‘a customer for life’ by making their service visits delightful when something goes wrong and it’s covered by a small copay.
A dealership will always reap significant benefits by converting a car sale into new customers for their service department. A knowledgeable, skilled sales representative who presents quality aftermarket products through F&I to a customer is the single most important factor in gaining that conversion. Sales representatives needs to be able to start the F&I conversation earlier in the process. Further, they also need to have a good understanding of the products and have a flow for transference to the F&I specialist. It simply cannot be stressed enough that training is a vital part of successful sales. Knowledge truly is power and being prepared and able to educate today’s savvy consumers is essential.
Products that Actually Make a Difference
Dealerships need a portfolio of A-rated, exceptional service products to offer their customer base. Different customers will always have different service needs, and more importantly different ideas about what they need. Being able to offer customers products through an effective digital process is key and needs to be incorporated. Selling and presentation processes need to be perfected for an in-store or online experience. Today you absolutely need both options. Good F&I managers will establish a comfortable rapport with your customers in the store, and you need to make sure that the online experience also translates into an exceptional user experience.
Most often when you go to a dealership’s website you find a wealth of information about the cars, but very little or nothing about the F&I products. Customers need to be informed about these products and how they add significant value and peace of mind. People really do want to be taught about things that will protect their investment, and today’s automobiles are indeed a significant investment. Dealers also need to make certain they have an effective strategy that addresses the F&I products that provide for their target market. It’s important not to miss out on these opportunities to serve and sell. For example, certain parts of the country may do extremely well with windshield, tire and wheel products, wherein (for example) major cities may be particularly attuned to maintenance plans and vehicle service contracts. It cannot be stressed enough how important it is to know your customers, know your target market, know your products, and align an F&I sales strategy that benefits everyone because that will ultimately be in the best interests of the dealership.
Another important factor is earlier introduction of F&I benefits to customers. Sales and F&I need to work hand-in-hand to properly represent and address the needs of prospective customers. F&I should not be the afterthought but interwoven into the fabric of the sales presentation. The dealership sales professionals should be introducing available benefits before customers ever get to the F&I office. That can only happen with truly effective hands on training across the product lines for not only the F&I specialists, but also for the sales team in its entirety.
To learn more about maximizing profitability at your dealer, contact Neil Brennan today on LinkedIn or by email at nbrennan@ezds.com.
