Comfort zone for customers

Jessie Sanchez charges her staff with conducting in-depth interviews with each customer in the finance and insurance office.

Sure, customers often form strong bonds with the salespeople at Findlay Honda in Las Vegas, but Sanchez, the finance director, wants the customers to feel just as comfortable with her staff. That not only allows Sanchez and her three team members to offer products best suited to the customers but lets the salespeople return to their primary duties.

"I don't want the salespeople to give us much information, beyond practical information," said Sanchez, who since joining the car business in 1996 has worked in every department except parts sales. "I'm not too concerned with the sales team's personality profiles of customers. I don't want to have a preconceived notion of a customer."

Finance directors have different ways of approaching customer interviews. Relying on the sales team works for some, while others, such as the F&I team at Findlay Honda, want more independence.

Dealerships typically view F&I profit per vehicle as the measurement of F&I success. Sanchez's way equates to about $1,200 in F&I gross income per vehicle retailed and few chargebacks.

Sanchez decided soon after she was named the dealership's finance director in 2010 that relying heavily on the salespeople for customer profiles was a disservice to everyone involved. It slows and unduly burdens the salesperson and doesn't allow the customer to explain nuances and preferences that might be relevant to F&I but not sales.

"We always go out and interview the customers ourselves," said Sanchez. "We use the basic information from the salesperson and tailor it to suit each customer. We keep everything very conversational. If you go out and start asking specific, pointed questions, people aren't as open."

Sanchez also reminds managers to watch their body language when approaching and working with clients. An open, welcoming persona will often relax even the edgiest of customers.

"We want them to think of us like a warm blanket," said Sanchez. "We want them to sit down, relax and discuss their wants and needs with us. Their lives are overloaded, and we want to do what we can to simplify things for them."

That approach is smart business, said author and consultant Max Zanan, president of Total Dealer Compliance, a dealership service consulting firm in New York.

"People buy from people, and F&I has very limited time to establish rapport," said Zanan. "It's too much to ask a salesperson to provide F&I with a lot of information. F&I staff have a completely different function. That's why it's important F&I managers gather the pertinent information themselves. That's the best way they can offer customers custom-tailored menus."

Of course, not everyone follows that path.

Marva Laws, business manager at Volvo Cars Annapolis, in Maryland, relies on dealership salespeople to fill her in on the customers she will meet. Gender, relationship status, age, personality type and other details help Laws prepare and quickly find commonality with customers.

That arms her to begin to develop a custom menu for each customer.

But she doesn't stop there. Laws' office is also conducive to relaxation. Customers who step inside hear soft music playing, enjoy a gentle scent misting through the air and sit across from her always clean desk as she focuses solely on them.

"It's important to give the customer as much personalized attention as possible," said Laws, who averages $1,500 in F&I gross income per vehicle retailed. "They shouldn't have to repeat themselves. The customer spent $60,000, $70,000 or more. They deserve all the respect and attention we can offer."

Sanchez agreed, noting that stereotypes can start conversations off on the wrong foot. Not every baby boomer is tech challenged, and not all millennials avoid one-on-one conversations, she said. Sanchez noted that many of her customers are members of the active military, and she and her staff are aware of their duties.

"We aren't formal for formality sake," said Sanchez. "We have a genuine appreciation for what they do."

One way to provide information to customers as F&I managers get to know them is to rely on as many props in the showroom as possible. A tire with a dented rim, a copy of a repair order to replace an air conditioner and demonstrations of paint and fabric protection engage customers and allow them to mull decisions and ask insightful questions, said Zanan.

Videos about the dealership, F&I products and even driving tips can be played in the showroom as another passive way to educate customers, he said.

Many savvy F&I managers also do research before meeting customers. They check the customers' address on the credit application to pinpoint their home and assess factors that could affect their purchase.

If there's nearby construction, for instance, they might be interested in tire and wheel coverage. Or if they live in an area with acid rain, paint protection may be an appropriate product. The F&I manager may also use the company database to find out if the customer has previously shopped at the dealership.

"Do some homework before you go out," said Zanan. "You can thank them for repeat business, talk to them about their trade-in and find out how their lives have changed since their earlier purchase."

Some F&I managers also contact customers a week or two after the sale to remind them they can still buy F&I services such as key replacement.

"A lot of times, customers say no because they read an article online that said they shouldn't buy anything in F&I or have had negative experiences," said Zanan. "It's up to us to erase that impression."