As the start of the customer’s purchasing journey moves more online, vehicle retail prices become pressurised, focussing greater profit margin requirements to F&I activity. Now more than ever, it is vital to ensure that customer needs and wishes are met – by offering a range of products and services at a lower margin and increased penetration.
The structure of a balanced sell should help to maintain or increase insurance profit whilst ensuring customers receive products and services they need. Customers want to be offered products that meet their needs and give the greatest protection, they want to be treated fairly, and this includes paying a fair price.
Key to achieving a balanced sell is having an efficient sales process supported by your add on product provider. When assessing the policy registration process, ask yourself: “Does it help me to achieve the greatest efficiencies, allowing time and opportunity to properly evaluate a customer’s needs, explain products clearly and allow the customer to make an informed decision?”
Look to appoint a product provider that is best in class, provides the best product, and supports efficient distribution. Does your product provider fit with your sales process and overall F&I strategy? Change in automotive retail is happening, so look for the innovators and asses how well they support a balanced sell strategy.
Simplify the process of evaluating a customer’s needs for a product, allowing more time to explain the product clearly.
Connect to product providers that support efficient distribution and product innovation.
Enhance consumer outcomes, increasing value for money with a wider range of products that offer greater protection.
By working within the FCA’s general insurance regulations, better consumer outcomes can be achieved whilst supporting what have become vital F&I profit centres. Many large franchised dealer groups have adopted a balanced sell strategy by utilising platforms such as DealTrak that support their sales and F&I process, driving better consumer outcomes and creating customer loyalty.
This article was written by Christian Ingrey – Head of Insurance at DealTrak.