6 Hot Trends at NADA Show 2020 that Dealers Should Watch

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Start packing your bags: NADA Show 2020 is just around the corner. This is one of our favorite events because we get to talk to our customers and prospects about industry and consumer trends that are impacting their success. This year we expect these hot topics to be part of those discussions: 


Increasing PVR through Partnerships with Sales and Training Experts

The retail market continues to evolve due to new sales channels, digital-savvy shoppers, and ongoing margin compression. As a result, F&I is becoming an even more important profit center.

To increase PVR and profit margins, work with an F&I partner who offers not only quality products, but also sales process and training support to help your sales teams establish formal objectives, better represent your brand and close more sales.

Assurant Checkpoint:
Assurant can help you align your sales processes so they’re optimized for your dealership and sales goals. For example, with the help of Assurant Resource Automotive, the Normandin dealership increased PVR by 140% by adjusting its processes, establishing formal goals, and recruiting and training top talent.

 

Aligning F&I Participation Models to Growth Opportunities

Overall vehicle sales are generally healthy, but dealers need to stay on top of change to capture the dollars they need to keep their businesses healthy. A good place to start is to evaluate reinsurance participation to make sure you are reinsured on all F&I products and the participation structure is aligned to your goals—whether that’s a long-term investment strategy or generating cash flow.

There’s also opportunity based on changes in the market: More technology in cars is opening the door for increased protection sales, while a strong used car market means certified pre-owned sales are poised to rise.

Assurant Checkpoint:
We can show you how our dealer insights and participation strategies can help you measure performance in real time and reach your total revenue potential. Our F&I specialists have all worked in F&I and understand the culture and the market.

 

Increasing Focus on Positive Customer Experience (CX)

The customer experience is replacing price and product as the primary brand differentiator for your dealership, something that is happening across all types of consumer transactions.1

With this in mind, smart dealers are analyzing every aspect of their dealerships to identify areas where improvement will deliver a more positive CX. This includes everything from customer survey feedback to your compensation models, team performance data, and knowledge gaps.

Assurant Checkpoint:
Talk to us about how we can help you adapt to changing customer expectations as you go, using the knowledge and processes you have in place to build a flexible foundation for your dealership.

 

Taking Advantage of Digital Retailing

The start of the sales process doesn’t always happen when a customer drives up to your lot. It’s the cumulation of hours of online research, browsing social media, emailing your sales team, and shopping your website. Research has found that the vast majority of vehicle sales today start online, but 39% of customers feel overwhelmed by all of the information available to them.

One way to differentiate yourself is to make it easier for customers to make informed decisions by providing educational information about F&I products on your website  This allows financial service managers to spend less time introducing the products, and more time asking questions about lifestyle and driving behavior to better match products to customers’ needs and budget.

Assurant Checkpoint:
We’ll be demonstrating our Digital Engagement Toolkit to show how we can help you provide F&I content at every digital touchpoint.                                                             

 

Building An All-Star Team

Your sales and F&I teams are the lifeblood of your dealership, but your employees come from a variety of backgrounds. Some have been in the industry for years, while others are new to the unique challenges of auto sales. That’s why training is key.

Training shouldn’t be a one-time event but a long-term game plan. Ongoing professional development and support can help team members of all backgrounds stay current with industry best practices, deliver a strong customer experience and reach their highest potential.

Assurant Checkpoint:
Come talk to us about how our flexible F&I training services, from formal classroom and in-dealership to online courses and virtual training programs, can help your FSMs improve their sales and leadership skills and boost overall performance.

 

Using Innovation To Gain an Edge

Dealers across the country are using new technologies to solve their biggest problems, sell more, and gain an edge on competitors. Research shows that your customers want modern, app-based solutions that help them manage maintenance or service alerts and provide access to premium auto tech support. Technology that modernizes the way you can communicate with customers will play a critical role in meeting customer needs moving forward.

And, when it comes to innovation in vehicles themselves, C.A.S.E., or Connectivity, Autonomous, Sharing/Subscription and Electrification, will continue to revolutionize the future of the auto industry, requiring you to modernize the way you work. More details on how these innovations are impacting the industry can be found in our article, “C.A.S.E., The Acronym Taking Over the Auto Industry.”

Assurant Checkpoint:
The Assurant Resource Automotive team is dedicated to staying ahead of customer demands and helping dealers take advantage of industry innovations to gain an edge. Come talk to us about some of the new products and services we’re working on.

 

See Further with Assurant at NADA Show 2020
Assurant has the solutions and technology you need to help you tackle these trends and build your foundation for success in 2020. Come visit us at NADA Show 2020 Booth 2354 to learn more about our insights into these topics and to discuss our dealer services program, reinsurance strategies, F&I training services and products and support like Digital Engagement Toolkit and PocketGeek Auto‚Ą†. Plus, we’ll be supporting the NADA Foundation’s Workforce Initiative by contributing $100 for every dealer who stops by our booth at the event. Take a look at how Assurant and the NADA Foundation’s Workforce Initiative are partnering to develop the next generation of auto professionals.

 

1 https://www.forbes.com/sites/forbestechcouncil/2018/02/21/the-new-cx-economy-emotions-rule-tech-saves-the-day/#5ae036a1135f