Follow-Up In F&I
After reviewing the production numbers from last year, it is clear that every F&-I department has an opportunity for additional income by using a follow-up plan.
How many service agreements has your department sold using a follow-up program? Some dealerships simply send out letters and forget it. For those dealerships, the returns are slim at best.
Effective follow-up plans use the telephone, email, and snail mail. For example, if someone calls a customer to advise them that an important email is coming from the dealership, hopefully the call will generate enough interest from the customer to open the email instead of deleting it.
The email should provide the customer with a Web-coupon, and an incentive to purchase the policy now using a special code. Remember, in Florida all service contract prices are filed with the State Department of Insurance and cannot be raised or lowered for any reason.
If the customer does not respond, then follow up with a postcard or another form of snail mail.
Example letter:
Dear Mrs. Customer,
Thank you for choosing Any Town Motors. We appreciate your confidence and your business.
We noticed at the time of delivery you did not choose to purchase a vehicle service contract. Many of our customers find this valuable coverage provides peace of mind and protects their budgets from costly repair bills.
We urge you to review the coverage on our Website and contact us at your earliest convenience to participate in this valuable plan.
Best regards,
John Q. Dealer
Sales Business Manager
Any Town Motors
Customers are often confused when they make such large purchases, and with longer factory warranties, the sense of urgency is removed. No means later would be better, not never. Provide a method of follow-up. You should provide every opportunity for each customer to enjoy the protection of a service agreement.
Dealer Marketing Magazine, February 2008, P. 47