Start packing your bags: NADA Show 2020 is just around the corner. This is one of our favorite events because we get to talk to our customers and prospects about industry and consumer trends that are impacting their success. This year we expect these hot topics to be part of those discussions:
Increasing PVR through Partnerships with Sales and Training Experts
The retail market continues to evolve due to new sales channels, digital-savvy shoppers, and ongoing margin compression. As a result, F&I is becoming an even more important profit center.
To increase PVR and profit margins, work with an F&I partner who offers not only quality products, but also sales process and training support to help your sales teams establish formal objectives, better represent your brand and close more sales.
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Aligning F&I Participation Models to Growth Opportunities
Overall vehicle sales are generally healthy, but dealers need to stay on top of change to capture the dollars they need to keep their businesses healthy. A good place to start is to evaluate reinsurance participation to make sure you are reinsured on all F&I products and the participation structure is aligned to your goals—whether that’s a long-term investment strategy or generating cash flow.
There’s also opportunity based on changes in the market: More technology in cars is opening the door for increased protection sales, while a strong used car market means certified pre-owned sales are poised to rise.
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Increasing Focus on Positive Customer Experience (CX)
The customer experience is replacing price and product as the primary brand differentiator for your dealership, something that is happening across all types of consumer transactions.1
With this in mind, smart dealers are analyzing every aspect of their dealerships to identify areas where improvement will deliver a more positive CX. This includes everything from customer survey feedback to your compensation models, team performance data, and knowledge gaps.
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Taking Advantage of Digital Retailing
The start of the sales process doesn’t always happen when a customer drives up to your lot. It’s the cumulation of hours of online research, browsing social media, emailing your sales team, and shopping your website. Research has found that the vast majority of vehicle sales today start online, but 39% of customers feel overwhelmed by all of the information available to them.
One way to differentiate yourself is to make it easier for customers to make informed decisions by providing educational information about F&I products on your website This allows financial service managers to spend less time introducing the products, and more time asking questions about lifestyle and driving behavior to better match products to customers’ needs and budget.
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Building An All-Star Team
Your sales and F&I teams are the lifeblood of your dealership, but your employees come from a variety of backgrounds. Some have been in the industry for years, while others are new to the unique challenges of auto sales. That’s why training is key.
Training shouldn’t be a one-time event but a long-term game plan. Ongoing professional development and support can help team members of all backgrounds stay current with industry best practices, deliver a strong customer experience and reach their highest potential.
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Using Innovation To Gain an Edge
Dealers across the country are using new technologies to solve their biggest problems, sell more, and gain an edge on competitors. Research shows that your customers want modern, app-based solutions that help them manage maintenance or service alerts and provide access to premium auto tech support. Technology that modernizes the way you can communicate with customers will play a critical role in meeting customer needs moving forward.
And, when it comes to innovation in vehicles themselves, C.A.S.E., or Connectivity, Autonomous, Sharing/Subscription and Electrification, will continue to revolutionize the future of the auto industry, requiring you to modernize the way you work. More details on how these innovations are impacting the industry can be found in our article, “C.A.S.E., The Acronym Taking Over the Auto Industry.”
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See Further with Assurant at NADA Show 2020
Assurant has the
solutions and technology you need to help you tackle these trends and build
your foundation for success in 2020. Come visit us at NADA Show 2020 Booth
2354 to learn more about our insights into these topics and to discuss our
dealer services program,
reinsurance strategies,
F&I training services
and products and support like
Digital Engagement Toolkit
and PocketGeek Auto℠. Plus, we’ll be supporting the NADA
Foundation’s Workforce Initiative by contributing $100 for every dealer
who stops by our booth at the event. Take a look at
how Assurant and the NADA Foundation’s Workforce Initiative are
partnering
to develop the next generation of auto professionals.