Customers expect a great experience.
In F&I, products are only 25 percent of what you sell. The remainder is an intangible feeling tied to that product. That requires helping the customer experience the benefit of each product on a personal level.
Multiple product presentations are no longer a satisfactory sales process for customers. Instead, customers today are looking to reduce or eliminate unexpected and unforeseen risks. In the F&I office, they want to know why a particular product is important in their unique situation.
While online shopping offers more convenience, it eliminates the personal interaction necessary to make an informed purchase. Customers have made it clear the impersonal efforts of the past will no longer be rewarded with their participation.
When an F&I professional makes a genuine effort to understand their concerns, it results in an open discussion that focuses on product benefits vs. payment and price. When that happens, both the customer and the dealership win. Positive customer experiences are shared on social media, but negative F&I experiences leave a lasting stain on a dealership’s reputation.
Many dealerships now offer remote buying options and online transactions to create ease in the buying process. Giving customers options is certainly the right approach. However, attempting to steer customers into these new delivery formats will only be met with resistance. The key is to offer options and allow the customer to select the one that works best for them. Other industries offer everything from curbside pickup and self-checkout to full-service delivery. Adopting similar practices in the F&I process provides customers an experience that serves them, not us.
Waiting to get into the F&I office has always been a major pain point for customers. A valuable response has been to schedule a convenient time for the customer to return and complete the paperwork. This option has been extremely well received by customers. Plus, it provides a more professional and timelier F&I process. A J.D. Power survey found 45 percent of customers with recent auto loans researched financing online. Dealerships that offer the ability to begin the F&I process online and choose the time, place and level of in-dealership interaction have seen higher satisfaction levels and profits.
Dealership success is dependent on proactive planning and preparation for the changing dynamics of our business. In the past, customers typically selected their car from scores of vehicles available on the lot. F&I managers forced customers to endure a showroom interview and then wait while they created a “custom” menu based on a generic list of questions, such as “How long do you plan on keeping this vehicle?” and “How many miles a year do you drive?”
It’s time to pivot.
Reduced inventory levels, inflation and an uncertain economy have customer interest for protection products at an all-time high. Many dealerships have seen the largest increase in F&I profits on record. Moving from selling customers to helping them, and eliminating worn-out word tracks in favor of educating and informing consumers, makes the F&I process a valuable part of their purchase experience.
Never underestimate the power of the personal touch. It’s time to embrace the digital revolution, serve it up with a variety of options and ensure every part of the sales and F&I process adds real value to the customer’s purchase experience. The past couple of years have taught us all to expect the unexpected. Building on the lessons learned will lead to an even more profitable 2022.