Back in the day, we didn't have the luxury or frill that today’s technology provides us. Back in the day, we utilized handwritten daily planners to manage and stay on top of our prospects, sales and follow-up. Back in the day at the sales tower, we relied on the calculator, Sharpie marker, Bic pen and four-square to construct deals.
In finance we peeled them off the ceiling with high-pressure sales tactics and step-selling madness. We trusted the Wang machine to spit out the deals details until the computer modified our approach, giving us access to a dealer management system, customer relationship management and F&I menu process.
During the shift many of us in the car business felt the latest advances were a distraction. We justified our resistance to new and innovated processes by saying, “That’s the way it’s done in the car business,” or worse, “That’s the way we have always done it.”
Though many in the business have adjusted to the changes, many among us still depend on those old and outdated resources. I call that the comfort zone, and for whatever reason they won’t step outside it, though they may seem comfortable, content and cozy in their comfort zone.
The fact is nothing ever grows there. It’s time you stepped outside your comfort zone and started to cultivate new, updated and innovative tactics and techniques. You must take the leap to grow, update your mental software, and reinvent yourself. Put a new twist on those old techniques, trade in your Sharpie for a nicely printed and uniform sales worksheet. The days of the smiley face, “YOU WIN!” are long gone. Stop the step-selling and develop F&I presentations that are engaging and keep your customer interested. Utilize the CRM tool to cultivate and generate more robust sales. Establish new methods, advance the old-school techniques and put a modern twist on them. Utilize the latest technologies to their full potential. Doing so will put you in tune with today’s car shopper. You’ll be in a better position to influence potential customers to do business with you.
The CRM Tool
Finance manager access to the dealership’s CRM tool is indispensable for managing and maximizing opportunities in today’s digitally charged environment. The CRM tool is the pulse of the dealership. Therefore, all management, from the general manager to the F&I manager, should have full access to it. In my travels and on-site visits, I find many F&I departments don’t have the type of access to the CRM that the sales team has. Giving access to the F& managers will have a positive effect on shaping a deal. The F&I managers who utilize their CRM access will be more in touch with the deals being worked, a deals structure, and the customers’ intentions, allowing for them to be proactive rather than reactive. Maximizing F&I potential and profit today is determined by the F&I manager’s willingness to modify his or her approach and implement a process that grabs and holds the customer’s interest throughout the sales process. That’s where access to the CRM comes in. It promotes better collaboration and teamwork, as well.
Differentiation
When your customers feel comfortable with you, their hesitancy decreases, and they become more receptive and communicate in an open and honest manner. To win over a prospect, you need an edge, an advantage or reason that differentiates you from the competition. Create an advantage when speaking with customers over the phone or corresponding through text or email. Make a 15- to 30-second introduction video of yourself, telling who you are, what you do, and what you can do for them. Send it in an email or text, saying it’s nothing more than putting the face with the name. When contacting customers to follow up or follow through, choose video conferencing. If you can’t see physical or emotional reactions and they can’t see your enthusiasm, confidence and passion, you’re at a disadvantage. Video conferencing, simply put, puts you in the moment. It’s as if the customer were sitting in front of you. Speaking with customers through video software platforms may feel awkward at first, but the same selling strategies used in your dealership are just as effective online. The personal connection that is made is indispensable! Before you can expect your customers to consider what you have to offer, they must feel comfortable with you.
Digital Evidence Manual
Fact or fiction? A fact is a piece of information that is true and can be proven through evidence. Fiction, on the other hand, refers to any type of story or narrative that is not based on reality. Hence, utilize an evidence manual to prove your claims. You can create awareness by placing a digital picture frame on your desk displaying a variety of images showing vehicle technologies, sensors, modules and semiconductors, pictures of tire damage, dings and dents to various repair orders. Point out the digital frame when the customer is hesitant to purchase. Give the customer something to occupy him or her while you’re printing the paperwork. Remember, a picture says a thousand words.
Digital F&I Presentation
The era of high-pressure sales tactics is over. Today's top F&I managers know that a successful menu presentation is about telling, not selling. It's about speed, efficiency and relevance. Customers have a limited attention span—roughly 190 seconds before they become resistant to new information. Therefore, your presentation must be concise, focusing on the features and benefits of each product without overwhelming the customer. A digital F&I menu can offer a more intuitive, interactive and engaging experience for your customers, whether on-site or on-line. Consider the three buying scenarios dealerships encounter today:
1) The Traditional Customer
Customers prefer to do everything in the dealership, from viewing vehicles and taking test drives to reviewing payment options and completing paperwork.
2) The Digital Customer
Customers who have no desire to come into the dealership prefer to complete the entire transaction online, from viewing vehicles and taking virtual test drives to deciding on payment or lease options and filling out paperwork.
3) The Hybrid Customer
Customers who like the best of both worlds are happy to do the traditional steps they love in person but would prefer to take the steps they hate online.
A streamlined F&I process benefits both your dealership and your customers – certainly! Utilizing a digital F&I menu offers an advantage for your dealership and the customer, regardless of the scenario. While deals are being manufactured on the premises, phone or online, take the opportunity to introduce yourself to customers before the F&I turn. Early F&I introductions diminish the apprehensions customers often have affecting the F&I part of the transaction.
Innovative Closing Techniques
Remember fact or fiction. Back up your claims with evidence. Show and tell by utilizing props and illustrations. Stop the “verbal vomit.” How about the old-school “maximize the benefit, minimize the cost” by saying, “It’s only a Starbucks coffee a day.” Try bringing your customer to what I call reality by having them calculate the current monthly payment by 30, which represents the average days in a month, then have them calculate the monthly cost of the product they’re most interested in or the difference in payment to make a deal by the same 30 days, and BOOM! Man, that’s only a couple of dollars difference a day! Avoid telling them why they should buy and start asking questions that enlighten them to the reasons they should buy. Questions like:
"What's your understanding of the manufacturer’s warranty?”
“What’s your understanding of the cost to replace the tires and wheels?”
“What’s your understanding of the cost involved in maintaining the vehicle?”
“What’s your understanding of the cost to repair or replace the keys?”
“What’s your understanding of the effect your vehicle’s appearance has at trade-in time?”
“What’s your understanding of your insurance company’s responsibility if the vehicle is totaled?”
“What’s your understanding of your responsibility at lease-end?”
You will be pleasantly surprised at the customer’s response to those questions.
I’ll leave you with this one; “It doesn’t matter how many miles you drive anymore. It’s the number of cycles your vehicle goes through each day.”
Each time you press the key fob, each time you press the start button, hundreds of lines of code are turning on and off the many modules, semiconductors and sensors that dictate what your vehicle should do next. The more cycles, the greater chance of a malfunction. Now that’s thinking outside the lot.
Gerry Gould is president of Gerry Gould & Associates, an automotive front-end sales associate, sales, and finance manager training and coaching platform, as well as director of training for ProdPrep, an online training resource for auto dealership departments.
