Automotive News - October 16, 2017 - Supplement - S5

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OCTOBER 16, 2017 | 5

BEST PRACTICES IN F&I

Post F&I materials and tools
for easy access by consumers

"What Garroni calls
'forward-thinking'
dealerships are
exploring online
transactions, set up
so the customer
doesn't need to set
foot in the
dealership."

ore than nine of 10 automotive
Internet shoppers visit at least
one automaker's site during the
shopping process. J.D. Power research shows those Internet users are spending more time shopping on their phones than
on a laptop or desktop computer, and they
head into the purchase process knowing
what specific model they want to buy. And
shoppers continue to visit fewer dealerships
in person before buying.
As more consumers research and shop for
cars online, dealerships should prioritize two
key digital F&I strategies, says Gabe Garroni,
vice president of sales at Ally Insurance. First,
dealerships should be creating a digital F&I experience for consumers shopping for a vehicle.
In its simplest terms, a
digital experience could
mean using the dealership
website as an information
hub, posting a host of F&I
materials and information,
such as preapproval applications, lists of financing
options and details on proGarroni: Prioritize tection products, including
vehicle service contracts,
two key digital
GAP coverage and ancilF&I strategies.
lary products. At the other
extreme, a digital experience involves offering
shoppers a complete end-to-end digital transaction.
What Garroni calls "forward-thinking" dealerships are exploring online transactions, set
up so the customer doesn't need to set foot in
the dealership. Some even advertise home
delivery of the vehicle after the purchase.
Companies, including Carvana, Vroom,
Costco, Walmart and Amazon, are exploring
different versions of an online car purchase
experience. To remain competitive, dealerships should first look at the traditional F&I
experience: Can a customer purchase experience be improved by conducting more of the
transaction online, by offering preapproval
online, virtual test drives or home delivery?
"We see dealers across the spectrum," says
Garroni. "And like any new technology, your
customer base will dictate what the best process is for your dealership. But if I was going
to recommend anything, it's to get involved in

some way - because sooner or later someone is going to figure out [online buying], and
dealerships should be prepared."
Garroni's second recommendation is that
dealers use digital tools to offer F&I protection products to car purchasers. Again, this
means making sure to post information
about vehicle service contracts, GAP coverage and ancillary products on the dealership
website.
"Consumers today are more comfortable
than ever with the idea of protection plans -
for their phones, computers, appliances," he
says. "But dealers need to think about these
products from a customer's perspective and
give that customer the information needed to
make a smart choice."
Offer details about what the products are,
how much they cost and what companies the
dealerships work with. Include that information online and in marketing materials and
point out the benefits of these protection programs to counter any marketplace misinformation, Garroni says.
"As a dealer I want to help educate my customers. Transparency builds trust. If you

have confidence in the products you offer -
if they are high-value products from quality
companies - then what is there to fear by offering customers information in advance?"
he says.
But successfully marketing these F&I products also means finding ways to communicate with those who already have purchased
a vehicle.
"One thing that doesn't get talked about
enough are the customers who already have
the car but don't have the F&I protections,"
he says. "When customers are buying vehicles in a booming economy, at the time of
sale the things that bring value to an aging
vehicle experience don't always matter. But
three years into owning that car, everything
changes. Service contracts become more important. How do we tap into that customer
base?"
He suggests working with partners, vendors
and agencies to find ways to maintain contact
with owners of aging vehicles - whether
those are loyalty programs, online offers,
email or other direct marketing programs, or
targeted ads delivered via social media.

Table of Contents for the Digital Edition of Automotive News - October 16, 2017 - Supplement