05 Apr Don’t Give Up on Lost VSC Sales…
We live in a data-driven world. It has its reach into nearly everything we do. Search engines know what we look up, social media knows what we like, and every purchase we make has our email attached to it.
Dealers leverage this kind of information to reach out to buyers for pricing specials, service reminders, and parts coupons.
Here’s an interesting way for F&I to benefit from all this data…to sell vehicle service contracts AFTER the customer takes delivery.
No, it’s not crazy to think that a dealership could actively reach out to buyers who did not buy a VSC in the F&I office at delivery. It actually could be a better way to sell it.
VSC’s are a high-margin product and arguably a tough sell. It takes a good bit of convincing especially on new cars. And it can be deflating when the customer leaves the office without it. Many F&I managers feel that customers will not call back to add it after the fact, either.
But all is not lost. There may be a way to leverage the data your store already captures to help close a few VSC’s after delivery. Let’s see what that looks like…
- Leverage the Email Addresses You Already Get – As dealerships collect email addresses to stay in touch with buyers after the sale, utilize that information to market a dedicated landing page/link that offers a VSC at a discounted price. Using a compelling message that has a strong call-to-action without being too pushy will help sell more VSC’s after the fact.
- No High-Pressure Calls/Hard Sell – Nothing will sink your CSI more than harassing your customers for after-sale products and services. They should be allowed to enjoy their new purchase without all that. But offering a simple email linking to the opportunity to buy a VSC at a cheaper price than what they were offered in F&I is not exactly the same. It’s better for them and better for your store’s reputation.
- Price It Right – In a perfect world, your F&I staff got the sale at delivery but if they didn’t, it should be offered at a discounted price. If it’s too expensive, customers will ignore it and not give it another thought.
Offer a monthly payment program at 0% interest and it’s an even better deal for buyers who may have had cold feet the day they purchased but now may have rethought it.
- A Better Alternative – There are several companies in the market that offer a call center program to sell VSC’s after delivery and while some may be successful at that business model, that is not the best approach.
Customers are not going to respond well to those tactics and the fast-talking, scripted presentation. With the inherent suspicion about extended warranties, your store can choose a better path to getting a few more policies sold each month. Many of those companies are jacking the price of the warranties to levels that will be out of reach of most buyers.
Even if your store only sold an extra 10-15 warranties a month, it’s solid profit to add to the bottom line. The dealership looks good for offering it at a good price and the customer feels like they got a good deal for protection they don’t have to pay interest on. Win-win.
Of course, it’s important to work with an administrator who can provide not only the policies themselves but also the capabilities to help make a program like this happen.
TruFollowup, powered by TruWarranty, offers a complete turnkey system to reach out and close those lost VSC buyers with a transparent and affordable payment plan. Your buyers get the peace of mind they need and your store hits your profit and penetration goals easier and quicker.