Tips for success in F&I sales
TIPS
FOR SUCCESS IN F&I SALES
CONTINUOUSLY INNOVATING AND FINDING NEW
AND BETTER WAYS TO ACHIEVE GREATER SUCCESS ARE
THE TRADEMARKS OF THE MOST SUCCESSFUL DEALERSHIPS.
Success in F&I is one component of your business that can have a significant impact on profit and your bottom line. But the difference between meeting your F&I objectives and exceeding them can come down to three key elements for finance managers: how well they understand your customer, their skill in customizing and delivering the sales presentation, and their ability to leverage strategies to help your dealership provide the best customer experience and achieve the most profit. Let’s take a deeper look at each element.
1. UNDERSTANDING THE CUSTOMER
It’s always been important to understand the customer, but now more than ever it’s also important to adapt and communicate in the manner the customer finds most comfortable. What worked yesterday may not be effective today. Today, the conversation may even take place virtually.
Because the customer interview is the cornerstone of the F&I sale, your F&I manager needs to be keenly dialed into the customer. That can be a challenge when you aren’t physically together. Kerry O’Sullivan, Regional F&I Executive for Zurich, says, “Nothing is more important than the customer interview.
If you prepare for and execute a really strong interview, it gives you everything you need to know customize an effective sales presentation.
“Tailoring the presentation to reflect the information gathered during the interview will more often lead to the customer seeing value in the products. Therefore, it’s critical to be proficient and comfortable with all scenarios for conducting the interview,” O’Sullivan notes. That means embracing all of the technology available for virtual meetings.
2. DELIVERING A CUSTOMIZED SALES PRESENTATION
It’s the skillful delivery of a customized sales presentation that sets the most successful finance managers apart from the rest. “Knowing the difference between pressure and persistence, and selling value in a manner that doesn’t make the customer feel uncomfortable, comes down to preparation and professionalism,” O’Sullivan explains. “Objection handling has to be value-based and budget-conscious.
A skilled business manager delivers the sales presentation and handles objections in a manner that supports the dealer’s commitment to a great customer experience.”
Your finance manager should spend time not only preparing the presentation based on the customer interview, but also practicing their delivery to ensure it strikes the right tone while building the compelling value proposition.
3.STRATEGIES TO PROVIDE THE BEST CUSTOMER EXPERIENCE AND DRIVE PROFIT
Experience and creativity are critical in this third element, as there are a number of strategies that may be leveraged to maximize opportunities for success. For example, effectively using the customer’s trade appraisal can reveal opportunities to build value in F&I products.
Understanding the customer’s ownership cycle is also important. Leasing has become more prevalent and profitable than ever, particularly for customers who trade vehicles every few years. Understanding how to sell the advantages associated with leasing a vehicle is an important strategy within the sales process. Conversely, a customer who keeps their vehicle for a longer period of time will more likely appreciate the benefits of extended service contract coverage.
Evaluating your product offering to ensure you have the right mix for every purchase option is critical and be sure not to overlook maintenance plans as a way to generate profit and as a retention tool.
Training and preparation in these key areas is essential to ensuring long-term success in F&I. This can be achieved through your commitment to ongoing professional development of your F&I team and adherence to best practices grounded in maximizing profit and delivering a superior customer experience.
10 DEALER PRINCIPAL