Virtual F&I

Written by: Martin Lewis and Retha Lewis (F&I Solutions Directors)

The Covid-19 pandemic has changed the world. No single event in history has driven the uptake of digital solutions, like Covid-19 – for businesses and individuals alike.

Technologies influencing not only Finance and Insurance (F&I) practices, but also motor sales, has never been as relevant and profound as it is now. For many South Africans post-lockdown, behaviours surrounding entering public spaces, including dealerships, will change. Customers will dictate how and where they will make their vehicle purchases. The days of grand car dealerships will no longer be relevant, as the way in which people browse, interact and transact will change, with more customers demanding digital solutions and seamless and convenient user experience.

For many South African motor dealerships, the traditional way of operating – specifically in the sales and F&I space – will most likely have to change,” says F&I Solutions Director, Retha Lewis.

F&I Solutions Directors, Martin Lewis and Retha Lewis, saw the ‘writing on the wall’ a few years ago – whereby, for many dealerships, the traditional F&I operating model would become unsustainable and eventually obsolete owing to changes in the way that customers want to purchase. In response to this, the team embarked on developing a concept and precursors for the establishment of what is called an F&I call centre.

The first port of call is the creation of a robust virtual space strategy. The strategy must take into account that the success of the call centre will be defined by the combination of lead generation, structure and processing. It is of utmost importance that the customer sees the execution of delivery as seamless. The second precursor is access to a digital platform what will enable the F&I to process every document online (contract, ROA, VAPS etc.), as well as the ability to sign all documentation electronically.

Once the precursors had been defined, the team successful implemented its first F&I call centre in 2017. This particular call centre, which does 95% of its business online, is unique in that when a lead comes through to the call centre, the customer deals with just one point of contact – an individual that is trained in both sales and F&I.   

“Each F&I within this call centre environment is fully qualified on the features and benefits of each vehicle, and is trained to process finance applications and to seek finance approvals. In addition, each and every F&I is comprehensively trained in the practice of selling Value Added Products and Services (VAPS),  getting contracts signed up electronically and ensuring that all FAIS documentation is compliant. The real value add lies in the fact that all of the F&Is within this call centre, come from a call centre environment whereby sales was their main objective. Each staff member is highly skilled in sales, enabling a new way forward for F&I, whereby the F&I is also the salesperson,” explains Martin.

Retha adds that each F&I within the call centre is targeted around total profit, and not just first or second gross. The customer is sold VAPS that are applicable to his or her needs by means of a scripted needs analysis – ensuring that the customer is treated fairly at all times.

“This particular call centre has enjoyed marked success. Since its implementation, the number of approved deals has increased and customer satisfaction levels have improved. We believe, in part, this is owing to that fact that the customer has one point of contact, whereby the F&I handles all aspects of both the sales and finance/insurance processes from beginning to end – a methodology whereby rapport is easily created and the customer feels like their best interests are at heart,” Martin explains.

Retha expands by saying that the new world of F&I is also focused on upskilling staff within the call centre environment. In the call centre mentioned above, majority of the staff do not come from a dealership environment. “This allows us to train each staff member on the new way of doing business – a way in which the customers’ needs are being met in a more convenient, seamless and transparent manner. Ongoing training and constructive supervision by senior team members has seen the staff members develop new skillsets and take ownership and pride in every deal.”

In contrast to the F&I call centre environment, the traditional set-up of having a separate sales department and F&I department often results in a very disjointed and disruptive experience for customers. The divide between sales and F&I often only sees 5% of the handover process (from sales to F&I) actually working. “The traditional set-up has been the norm for so many years that somewhere along the line the industry stopped listening to what the customer wants – a trusted and convenient digital user experience for car buying,” concludes Retha.  

“Customers have less time on their hands. Gone are the days when customers drive from dealership to dealership, looking for a vehicle – so too are the days whereby a customer has to sit in an F&I office for hours navigating their way through paperwork. Consumer demand (post-lockdown) will continue to drive the need for a convenient and seamless online user experience, making now a good time to evaluate how traditional F&I practices and processes may cost your dealership valuable opportunities,” concludes Martin.