Every dealership knows that profit isn’t just generated from vehicle sales – it also comes from the products offered by your F&I department. However, convincing a customer that they need F&I products during the vehicle purchase process can be difficult. According to NADA, 53% of buyers don’t buy a vehicle service contract from the dealership F&I department when purchasing a vehicle, and these are missed sales opportunities.
Traditionally, the Finance and Insurance (F&I) department has focused on appealing to a broad range of consumers with a one-size-fits-all approach. However, the rise of Generation Z shoppers demands a shift in the strategy of selling F&I products. Gen Z is coming of age and beginning to slide into the driver’s seat. While this generation follows those that precede them in prioritizing price as the biggest motivator for what vehicle to buy, they follow their own path when it comes to protecting this very large purchase.
Some of those automotive businesses are beneficial to both drivers and dealership. Tire shops, auto body shops, and even junkyards serve an important part in the vehicular ecosystem. However, some businesses on the fringes of the automotive world provide poor experiences to customers and dealerships like.
Third-party marketers are among those businesses that are harmful not just to the vehicle owners they target, but also to dealerships by causing harm directly to the automotive industry.
In today’s competitive automotive landscape, dealerships must constantly seek new ways to engage with customers and drive growth. One powerful tool that is often overlooked is a well-crafted blog tailored to your customers’ needs and interests.
The business social media platform LinkedIn was launched in 2003 and met with resounding success, and it has only continued to grow in popularity. It is the third fastest-growing social media platform and saw a 20% increase in users from May 2022 to January 2023. In the automotive field, it’s an invaluable tool for agents looking to connect with new business partners and dealership employees.
Marketing using consumer data can be valuable for dealerships. Following up with vehicle buyers on routine maintenance, notifying customers of finance specials, and post-sale benefits are all ways dealerships use consumer data. When done properly, marketing with consumer data leads to more sales and increased customer retention.
APC, the leading database marketer for Vehicle Services Contracts (VSC) in the Automotive Industry announced it has achieved SOC 2 Type II certification, the gold standard for data security and compliance.
With a whopping 78% of car shoppers turning to third-party online websites to begin their vehicle purchasing journey, dealerships need to try and combat this by attracting those buyers into their showrooms.
At Automotive Product Consultants we always emphasize the power of increasing revenue beyond vehicle sales. There are many overlooked revenue opportunities in dealerships, but taking the time to realize them is a great way to transform the bottom line. These are four methods that owners and general managers of dealerships can use to increase revenue.
The competition for customers between automotive dealerships is fierce. Consumers are more involved than ever before in purchasing processes and are easily able to compare dealerships to find the best fit. With access to the internet for online research, recommendations, dealership comparison, and even vehicle purchases, customers can change dealerships easily, and dealers are feeling the pressure of learning how to keep customers returning to their store.
