Did you know there are more than 276 million registered cars in the US? If you are a car dealership, the statistics mean something to you. It shows the potential of the American market in selling F&I products.
Each car will need insurance policies, a vehicle warranty, and auto parts. If your sales team is competent, your business has the potential for growth.
How do you win clients? How do you convince them your finance and insurance products are the best?
The American auto industry is highly competitive. You need an agile sales strategy to stay ahead. Keep reading to learn how to sell F&I products in the competitive market.
Tips for Selling F&I Products
Selling F&I products requires serious commitment and competence. You need to stand out from your competitors. Try the following tips to boost your sales.
Identifying the Target Market
The target market for a business is the group of people to which you try to sell products and services. You can segment your target into smaller groups. This allows the business to focus on a specific group. Segmentation is an incentive to attract more customers. Understanding each group’s needs helps target the clients in the right way.
In researching the target market, identify the demographics, needs, and wants. Methods such as customer surveys, focus groups, and questionnaires can be helpful.
Once you have your target market, you need to generate leads. A car dealership’s success in generating leads can make or break the firm. Eighty percent of businesses will fail within five years if they cannot generate enough leads. 1 in 4 marketing executives sees lead generation as their biggest challenge.
There are two ways to generate leads: physically and online. You can physically meet people and speak to them. Alternatively, you can do it online through social media, emails, or websites. Email marketing is considered the most effective way of generating leads.
Building Trust by Providing Value
You need to establish a unique selling and value proposition. Inform the clients of the value and benefits your product provides. A Unique Selling Proposition (USP) makes your product different from competitors. In the auto insurance industry, competition is fierce. It is difficult to differentiate your brand from another.
Your USP goal is to make your business more appealing to potential customers. The USP has to be unique and engaging.
Make Your Presentation Easy and Fast
Whether you are selling online or physically, you need a presentation. The sales presentation must be short and not exceed 10 minutes. Make the short time worthwhile for the client.
In the 10 minutes, make customers feel comfortable with you. You have to build trust and interest. Most online sellers know how to sell, but they don’t know how to sell fast. Most sellers have too many products in their inventory. It makes it hard to sell fast.
In your presentation, have a limited number of products. It will help to be concise and focus on the client’s needs. If you sell vehicle add-ons on your website, you’ll want to know a few tips. Optimize for e-commerce to avoid losing potential clients. If your car dealership’s e-commerce is operational, make it user-friendly:
- Reduce the number of clicks it takes to check out
- Show multiple payment options upfront
- Offer free shipping (at least on larger orders)
- Offer an instant discount for registering or signing in
A complex check-out process will make the clients abandon the cart and never return.
Communicating Your Message Clearly and Simply
Marketing is broken. It’s too complicated. The average consumer is inundated with hundreds of marketing messages per day. Customers don’t have time to sift through all the noise.
You need marketing strategies that connect with your customers. This involves asking yourself the right questions. The goal is to get a clear picture of what your customers want. Your communication approach should build awareness, attraction, action, and affinity. Inform the clients of the finance and insurance products. Build their interest to buy and get them into action by buying.
Closing the Deal Quickly and Effortlessly
You may get a lot of leads. It doesn’t mean you will close them. You need to do your homework before getting into an actual conversation with your lead. This is where most people make their mistakes. Closing a deal is the most critical process in selling F&I products. Many people have difficulty closing a deal and never move to the next step.
There are two ways to close a deal: soft close and hard close. A soft close involves presenting your product or service. You don’t force the client to make a decision. You want to build trust with the customer before asking for money. Hard closing a deal is the best way to get results. It lets your prospect know you are looking for an answer and not just trying to “sell” them on something. This helps you build a better relationship with your prospect.
As a salesperson, you need to set yourself apart from the rest.
Use Technology to Market your Finance and Insurance Products
With technology evolving rapidly, it’s the perfect time to be in finance and insurance. Mobile apps and social media channels are significant technological advancements to explore. Social media extends your reach and ability to connect with customers. It allows you to meet the target market remotely and build relationships.
Mobile apps will help you provide useful services and information. Both the tools increase brand awareness and customer loyalty. They also create new sales leads and enhance your current marketing strategy.
Maximize Your F&I Sales Today
F&I products make a large contribution to dealership gross profits. Effective communication as well as meeting and exceeding clients’ expectations are key to creating a lasting, mutually beneficial relationship. Selling F&I products can be challenging. The market is flooded with dealers selling similar products at similar or lower prices. The above sales tips can make a difference.
CareGard Warranty Services has more than 26 years in delivering superior alternatives to mainstream F&I products. Contact us today for F&I solutions for your company.