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Reprints6 ways to engage customers in F&I
You've streamlined your product menu. But for customers eager to get into a new vehicle, the F&I process can still seem too long.
The Hendrick Automotive Group, the nation's seventh-largest dealership group in new retail unit sales, makes the process more customer-friendly with some simple transitions and a short needs assessment.
In 2010, the 66-store group retailed 107,202 new and used units and grossed $148,465,532 in its F&I departments, yielding $1,385 per vehicle retailed.
Hendrick averages 1.23 products per sale and sells 37 percent of customers service contracts, 20 percent prepaid maintenance plans and 20 percent oil change plans.
"We involve the customer in the process," says Randy Watkins, Hendrick's director of financial services. "We don't sell what we want, we sell based on the customer's needs."
Here are Watkins' tips for engaging customers in the F&I process:
1. Educate the customer on what to expect. When the customer arrives at the F&I office, the finance manager should say: "I'm going to review the titling information and settlement portion of your transaction. I am going to go over a great program we have been working on here at the dealership."
2. Respect their time. Tell them: "Most important, I am going to get you out of here as soon as possible. How does that sound?"
3. Ask four quick questions to assess the customer needs. Those questions are: How long do you plan on keeping your vehicle? How many miles do you drive each year? Are you going to visit our service department to have your vehicle serviced? Is it important to take care of your vehicle so it will be worth more when you get ready to sell or trade it?
4. Offer the chance to save money. Watkins suggests saying: "We have spent a great deal of time putting together a program that will provide you the opportunity to potentially save a great deal of money during your ownership period."
5. Emphasize their choices. Watkins says to refer to products on the menu as "options." For example: "Our program consists of four options: preferred, value, basic or economy."
6. Sell the chance to customize. After presenting the product menu, Watkins suggests saying: "The great thing is that you can choose all of these options, none of these options, or we can mix or match them, customizing the program to fit your driving habits."
