September 10, 2015

Presented By

Rick McCormick

___________________________________ Name

Copyright © 2015 Reahard & Associates, Inc. P a g e | 1

Growing F&I From The Inside Out

By Rick McCormick

The foundational truth of growth: Healthy things grow, unhealthy things die. Low production, disappointing product acceptance levels and high chargebacks are outside symptoms of an inside problem. A healthy process will produce more profits – ! Higher production levels are driven by a correct mindset – ! An ongoing effort of training and practice will ensure consistent growth – ! F&I departments will rise to the level of the expectations placed on them – !

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The Greatest Enemy Facing the F&I Profession Today is the Acceptance of Mediocrity!

Latin definition of mediocre:

Medial – Ocris –

Mediocre is “To settle halfway up the summit of a difficult mountain!” Mediocre Symptoms Healthy Symptoms

• Step Selling • Menu Selling • High Pressure • Customer Focused • Hiding Products • Full Disclosure • Customer Listens • Customer Talks • Customer Watches • Customer Involved

The challenges have never been greater. Customers are in constant contact with the internet.

Demands to move customers in and out of F&I in less time.

Forward thinking caps on finance reserve.

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The Core Principle of a Healthy F&I Process is a Customer-Centric Mindset The F&I mindset must always be to help customers not sell customers. If customers get what they want we are more likely to get what we want! F&I Managers that focus on the customer’s perspective, who truly want to make a difference in the customer’s ownership experience, will consistently outsell those who are focused on sales goals and money. Money follows service everywhere it goes!

Keys to GROW with a Customer-Centric Mindset

1. - The goal is to provide a USP with every customer interaction. Top performers sell the unique reasons each customer needs the products offered.

USP will lead to a product spread that is driven by the ,

not our choice of products. 2. replace making

presentations. Word tracks and memorized sales pitches create customer resistance and the lack of genuine concern tells the customer we are only working toward what is best for us.

3. replace offering opinions. When needs

based questions are used the advice that emerges is solicited advice; which is more likely to lead a customer to buy.

4. replaces attempting to sell customers. Customers

expect to be pushed, manipulated and pressured into buying things they do not feel they want or need. When they encounter someone that is helping them fill a need or solve a problem, the customer feels that person is working for them. That is empowering a customer!

5. makes a powerful connection of what a product will do for them that transcends the product itself.

To be genuine, helping customers must become a mindset. If you are not genuine, you are generic and easily dismissed as irrelevant.

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Top performing F&I Managers connect with two emotions:

1. They build a high level with each customer.

2. They discover how each customer about the car they have bought and how they

will about future issues that may arise during their ownership experience.

The typical F&I process is filled with .

A customer-centric process focuses on questions that target how the customer .

With a customer-centric process, the customer the benefit and

linked to the product, they buy.

Once the customer feels rather than just thinks that the product will meet a need, and/or solve a problem then they are more likely to be driven by the need to have it.

“A great brand taps into emotions…. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that

transcends the products.” -Scott Bedbury Nike and Starbucks

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A Visual and Interactive Process Makes Invisible Products Come Alive! Making Sense of the Senses in the F&I Office How We Learn Tell Them = Show Them = Involve Them =

Every customer deserves a visual and interactive presentation. Growing F&I Managers embrace the interactive effort to build value in their products. When customers can touch, feel and interact with a product they are much more likely to buy it and buy it from you! Customer’s mantra “ !” A current Repair Order placed in the hands of a customer enables you to say: “A customer, who perhaps sat in the same chair you are, was recently handed this bill. The customer’s response changes depending on who is paying for the repairs noted on the bill.” coverage on parts is a tough sell… let them see and touch a covered part! A customer came to the service department with the following complaint: “my clicker doesn’t work”. A failed keyless remote module, smaller than a hotel key card, was the diagnosis. The final bill was $853.00. A visual and interactive process provides the three things that must happen with every customer to ensure maximum success levels:

1. Learn something

2. Feel something

3. Motivated to do something

Anything less leads to missed opportunities!

Hotel Key Card Keyless Remote Module

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Growing Communication Skills The most important part of communication is ! You cannot and at the same time.

Use the rule. Listening is a and force. We move toward those that listen to us and to their ideas! To Grow in F&I Production Focus on Four Listening & Relationship Building Skills Focus on what is to the customer not what is important to you. Customers don’t buy when they understand; they buy when they feel they have been understood. Ask questions and allow them . Customers do not come into the F&I office expecting to talk about themselves. When given the opportunity it is amazing what we can learn about them and how to help them. Collecting while the customer is talking is the most effective manner to provide a targeted presentation as to why that particular customer needs a product. Trust is the most important factor in the F&I process. An F&I Professional that listens to the customer is someone they can trust. Customers buy at higher levels from someone they can trust is doing what is right for them and their situation.

The only way to deliver a personal solution to each customer is to have an honest understanding of what they want. You cannot do that without practicing

.

You must listen to understand and refuse to plot the while they’re are talking.

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Ongoing and Consistent Grows the Healthiest F&I Departments Working to improve skill sets must be a daily process not an occasional commitment. Training to stay informed, sharp and increase skill levels is too important not to track and hold everyone . To Grow Your Business You Must Grow Your People. Training is the vehicle to get you there. Training develops in abilities and about the products.

Knowledge + Confidence + Passion =

An Effective Training Process That Drives Results Should Include 3 Components 1. Calendar – Training must be with the expectation that every month, every

week, and every day something should be done to focus and improve skills.

2. Accountability – Effort must be and rewarded. If it is important, it is in the compensation plan. Include it!

3. Role-play – Professionals anticipated customer objections before they encounter them. Practicing before the “real game” is a process that professionals of every profession adhere to. F&I should not be an exception!

The Rule of Five! Hit a tree with an axe 5 times every day and eventually the tree will fall. Progress! Hit the same tree with a ball bat 5 times a day and it will be frustrating and make you sore! Right activities will ensure consistent improvement and establish and maintain top performance levels.

“Know yourself well enough to know what you need to do to play better. Some pitchers are willing to pay that price, and some aren’t. The game will eventually weed those guys out.”

–Rick Honeycutt, the LA Dodgers

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Success is the sum of small efforts repeated day in and day out.

1. to something motivational to set a positive attitude.

2. Review – Know where you are currently in relation to your goals.

3. Practice a skill – 15 minutes to stay sharp!

4. Read blog/article to expand your knowledge and perspective.

5. Send an email and/or speak to another team member whom you witnessed doing something “right” to help build your team!

Accidental Growth Intentional Growth

• Plans to start tomorrow • Insists on starting today

• Waits for growth to come • Takes complete responsibility to grow

• Learns only from mistakes • Focuses on learning before mistakes

• Hopes for good luck • Relies on hard work

• Quits early and often • Perseveres long and hard

• Believes bad habits are good habits • Develops and maintains good habits

• Plays it safe – Care Taker • Try new techniques – Risk-Taker

• Blames circumstances-others • Looks to address new challenges

• Relies on sales abilities alone • Relies on doing what is best for customer!

5 Steps To Ensure Healthy F&I Production

Vision – If you focus on growing people not profits, you get both!

Breathing – Create. Maintaining and monitoring a consistent training effort will turn reactive F&I Managers into pro-active top producers!

Appetite – Track and reward effort as well as effectiveness. The appetite for consistent growth is the fuel for success. How hungry is your Team?

Pulse – Clearly and regularly communicate expectations. Top producers rise to the level of what is expected of them.

Growth – Celebrate winning! When growth occurs, acknowledge it, highlight it and celebrate it! Top producers list this as one of the top reasons they love their job!

Changing environments and challenges in the F&I office is assured – Growth is optional!