Digital e-menu technology is a competitive equalizer
When sports teams take the field, commentators review their attributes, experience, and records. And although all players are unique, one cannot help but to compare their stats against their competition. How well does your finance and insurance department stack up against its F&I competition?
Although different dealerships deal with particular limitations, the public dealership groups’ results can provide a useful comparison. New-car per vehicle retailed (PVR) for late 2015 ranged from $1,189 to $1,556.
More heavily resourced enterprises can more easily fund F&I training and technology to improve results. And those enterprises also are likely to examine F&I results in depth, analyzing the data to discover where lost opportunities are eroding PVR and product penetration.
As for product penetration, NADA reports its members’ service contract penetration is about 40% of new-car sales. How is your dealership doing against that metric?
Last year, our company pulled data from 270 Fiat Chrysler Automobiles dealers using leading e-menu software. Digital menus engaged customers using interactive devices such as tablets, touchscreens, and televisions to give them a customized product presentation. The presentations were done transparently, quickly, and thoroughly. The right digital menu platforms should also provide dealership management with details about everything between the buyer and F&I presenter to ensure compliance and consistency.
The most advanced systems have a customer survey built in to help inform F&I managers of the driving habits of customers they are serving. The best-of-breed systems actually synthesize critical data points (like deal info, available products, cost of repair, customer lifestyle, driving behaviors, risk factors, and more) to create product recommendations and allow for maximum customer control. All this leads to a better buying experience for the customer, which translates into more sales for the dealer.
When we looked at the key performance indicator (KPI) data on these dealers’ use or non-use of an e-menu in their transactions, we learned these differences:
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Dealer Marketing Magazine
Author: Digital Dealer
Digital Dealer exists to help dealers and their managers sell more vehicles more profitably by creating the best live events and media in the industry.