In this installment of the Canadian auto dealer and Harris/Decima Research project, we asked Canadians about their experiences in the business office with finance and insurance products
Whether you call it the business office, F&I (or even still “the box”) the function in the dealership that formalizes and completes the sales process is a vital part of the operation.
We were curious about two things that involve the business office: do customers really separate that part of the sales process in their minds; and are there really regrets about signing on for unwanted items?
We asked more than 800 Canadians who had purchased a new vehicle in the past five years, what they particularly liked or disliked about their purchase experience, what they bought through the business office and whether or not they would purchase those items again if they were to repeat the purchase process.
First, what they liked or disliked. On the positive side, it seems that while the price or the deal is a key part of the experience, it’s the people factor that will carry the most lasting impression. Of those surveyed, 36 per cent mentioned the level of service and the friendly, helpful staff as the “best part” of their experience.
Another five per cent mentioned knowledgeable staff and four per cent mentioned the honesty of the staff. That means people factors accounted for 45 per cent of mentions.
The good price/deal garnered only 14 per cent — here today, gone tomorrow (although granted,the sale was made).
On the negative side, apart from having to part with all that money (22 per cent mentioned that as being the worst part), 15 per cent mentioned poor service or pushy and aggressive salespeople (especially among younger customers).
The length of the process was mentioned by six per cent and the actual price negotiation was mentioned by only five per cent of respondents.
NOT A SEPARATE ELEMENT
The bottom line is that the F&I process in itself is not singled out by the customer as a separate part of the experience. It is also not necessarily as negative as it is sometimes made out to be (the pushiness and aggressiveness could come from either the sales team or the F&I team).
What is true is that the impression — either negative or positive — that the customer carries away from the dealership is driven far more by the people than by the process.
I am reminded of a comment made by Sergio Marchionne of Chrysler/Fiat when addressing a packed audience of dealers in São Paulo, Brazil in 2010: “Good people are worth more than process.” It’s not that process is unimportant, but people can make or break that process.
Second, what did they sign up for in the F&I office and where are the “sticky” products – those that they would buy again?
The chart shows what penetration each item achieved (the blue bar) and what percentage of those customers who purchased each offering, would purchase again (the “stickiness” quotient).
Rust protection appears perennially strong, but other good opportunities are loan insurance, service maintenance packages and wear and tear packages. With the many profit opportunities available through the business office, it’s the people who will help the dealership make the most of those opportunities.
