Pub. 14 2015-2016 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 9 new jersey auto retailer W W W . N J C A R . O R G customer who demands the process serve them, NOT the dealership. So here we are today with the guiding principles established from the prior eras and now we must develop a timely process where the customer is our focus. What do you see as one of the big- gest challenges in the F&I office today and how do we overcome it? In one word - Time! Customers have consistently identified the time they spend waiting to get into the F&I office as the most frustrating part of the car buying process. And now we know from a recent study conducted by J.D. Power that once the customer is over the 30-minute time frame inside the F&I office satisfaction drops significantly. Every minute they’re waiting on an F&I manager to prepare their paperwork, they’re shopping rates and products. They’re texting friends and family mem- bers to ask whether they should buy a ser- vice contract, GAP protection and what- ever other F&I products your dealership happens to offer. If they’re not texting, they are likely pondering, “Do I NEED tire and wheel road hazard protection?” Several steps should be implemented to navigate every customer through the F&I process in a timelymanner. First, we must engage the customer online with informa- tion about F&I products and pricing. A recent study by Cox Automotive revealed that 83% of customers would like to learn about F&I products before they come to the dealership; and 63% of those that do would be more likely to buy those prod- ucts. This builds trust where most engage us for the first time, online. When trust goes up, the speed of the process naturally goes up and so do profits. Second, we must develop a strategy that moves non-essential paperwork to the salesperson and utilize an integrated technology that eliminates duplicate data entry once the customers’ infor- mation reaches the F&I office. And third, we must have a process to elimi- nate the wait time before entering the F&I office and never leave the customer alone after the car is sold. It must be an ‘all hands on deck’ strategy once the car is sold and Sales and F&I must both work together to utilize the customer’s time ef fectively. Some dealerships have introduced “Welcome Packs” that contain all the forms needed for a complete delivery in a shrink wrapped packaged. The initial form is a welcome letter from the dealer that is handed to the customer and the remainder is what is needed by the salesperson. A simple packet, coupled with integrated technology, can go a long way to elimi- nate the wasted time of chasing missing forms/information and shorten the time waiting to get into the F&I office. I have seen many dealerships where the customers’ information must be entered up to three times by the F&I manager. That must be eliminated. What does F&I of the future look like to you? The pace of change in the F&I office is at warp speed. We know technology will continue to grow in significance and will impact how we navigate each customer through the entire sales pro- cess. However, there are two things we must have to assure the technology we use is effective and not just a costly high tech mirror of a current fragmented process. We must have a strategy for our technology use so it saves time and provides information in a format most customers are accustomed to. The tech- nology must be integrated so it moves customers through the buying process in a timely manner. Second, we must put this technology in the hands of well- trained F&I professionals who will uti- lize it effectively. Providing technology doesn’t assure amazing results. We still need a well-trained and forward-looking F&I manager to make this ever-evolving process work for both the customer and the dealership. We will continue to see increased implementation of regulations. Train- ing must be an integral part of every F&I department, so every F&I manager is up-to-date on all compliance issues and best practices for providing an ef- ficient and transparent process. More scrutiny on product pricing is around the corner. Providing self-imposed price caps on products to assure con- sistent pricing will lead F&I managers to further develop their ability to help customers buy multiple products more consistently to meet dealership goals. In the end, everyone wins. The future for F&I will be exciting and we will rise to the challenge as we always do. The most pro-active and for- ward-thinking dealerships will arrive at the destination of higher profits and customer satisfaction first. Our best days are ahead of us and the promise of F&I has never been brighter! The future will be exciting and we will rise to the challenge as we always do. The most pro-active and forward-thinking dealerships will arrive at the destination of higher profits and customer satisfaction first. Rick McCormick is the National Account De- velopment Manager for Reahard & Associates Inc. He can be reached at 866.732.4273 or via email at rick@go-reahard.com .