There are a variety of software programs and software providers, in the market, that offer profit-making solutions for Agents to help their dealer-clients manage their business successfully. But what is the best menu systems comprised of, how can an Agent ensure that his or her dealer-client is going to use the program?
Around 2002, the concept called Menu Selling caught my attention. It was clear to me, from my F&I Sales and Compliance training experience, that the concept of closing F&I products on a menu could only be effectively done with the ability to change and adjust for customer preferences and choices on the fly. It had to be electronic.
Yes, menu selling is gaining traction in dealerships but what should an agent or dealer look for “most” in an electronic solution. Simplicity in design should be something that every software designer should keep in mind because the normal user does not have the technical background or know-how to act as a programmer. Simplicity in design requires that the user can easily function within the software, and that the software will give the user the ability to capitalize on profit opportunities
It’s important that the F&I manager can promote their products in the most positive light. Having also been a general agent myself, it has provided me with the insight of what an agent really looks for in a product and with the knowledge of what the dealers are looking for. Agents are very busy, and with business being so highly competitive, they need software that they and their dealer-clients can count on. They need products to do what they are supposed to do, and from a company that is responsive to their needs, as well as those of their dealers.
Where have menus been and where are they going?
It’s very interesting how far menu programs have come. The first menu systems were excel programs. Along came the internet. The internet made the menu business possible as a third-party web-based solution. Then .net solutions enabled menu to be managed at a centralized location and be distributed anywhere in the world. Once web solutions were available, integration to the Dealer Management Systems (DMS) had to happen. The integration to the DMS was at first hostile in nature and that didn’t allow for a seamless process. Today most DMSs are making it possible to integrate much easier. Integration will continue to become friendlier in the near future. Friendly integration will give menu companies the ability to focus on making their sales solution more efficient and flexible.
The next big challenge and greatest area of growth for technology in our industry is belonging to the concept of E-rating and E-Contracting. It may not have been so clear in prior years, but this is an area in which Menus can play a very important role. This is because menus are becoming the hub between the DMS and vendor when it comes to rating and processing product contracts. As rating becomes more efficient, menus will make it easier to sell products and process them. Then everyone wins! Sure every menu company says they E-rate and E-Contract but why isn’t everyone using it? They aren’t, because for the most part it isn’t very efficient to rate and enroll all of the F&I products. Stay tuned, I think we are going to see significant improvements.
Reporting Tools are a Great Enhancement to Your Menu
Reporting tools are another product that is very important to agents and dealers, and they are often sold hand-in-hand with menu software. Reports evaluate a dealer’s front and back-end profits and do so in a unique way. Independent agents should be the dealers’ primary consultant when it comes to F&I profitability. Therefore, the agent needs to know daily where the dealer’s profit picture stands. When they walk in the dealership they should not have to ask how many F&I products have been sold. They should already know. Web-based F&I reports give the agent the ability to check their iPad, via 4G, before they walk in the door, so they have this information.
The best reporting software package designs will allow the users the ability to create a page of widgets that include ranking charts, reports and other personal controls. It is also important for an agent to provide their dealers with customized reports. Anyone can add up numbers and compare data, but what makes a reporting company different is their ability to see the data in a way that wasn’t quite evident. The focus should be on drawing comparisons from all the data, so an agent may deliver something to their dealer that sets them aside from their competitors yet gives our dealers the information they need to motivate their employees.
What’s the Agent’s Role?
Can an agent just have Menu and Reporting installed in a dealership and then walk away? Not if they want to get the most out of it. The agent’s primary goal to begin with is to get dealership personnel comfortable and confident enough to use the software on a consistent basis.
What can the agent do to help the dealer in this process? After a dealership has incorporated a menu, reporting and possibly other tools into its F&I process, there are a few additional ways an agent can stay involved so that the dealer is successful in learning and using the software programs.
The first thing they can do is make sure the tools are installed and kicked off properly. That starts with preparation. If necessary, make sure the reporting company gets the sales and F&I logs so it’s certain that all fields are mapped over correctly. The important thing is for the agent to stay active in the process. They should expect the menu/reporting company to do the heavy lifting, but if the agent is not involved, the dealer doesn’t always fully comply with what’s necessary for accurate menus and reports.
The agent needs to make sure the dealer starts using the tools from the very beginning. If the company has the right reporting in place, such as a menu usage report, it’s easy for the agent to stay on top of it from their office. If they aren’t using the products, find out why and fix the problem.
It’s very important that the agent has a company working with them as a software partner in their accounts. They need to trust that they will always do what’s in the agent’s best interest and be highly responsible to their agency and dealer’s needs. If the company they are doing menu/reporting with is uninterested or doesn’t answer the phone or return calls, its time to get a new partner.
