technology

Build Your F&I Revenue Through Video

Dealers are increasingly adopting video in order to engage customers and win sales. Well, how about adopting this strategy in the F&I department as well?

As front-end margins decrease, many dealerships are placing more emphasis on F&I to make revenue. With digital retailing on the rise and customers shopping from home rather than in the showroom, how does a finance department sell F&I products in the absence of the dealer?

Going under the assumption that home delivery means that the entire deal has already been done as the paperwork must be printed in advance, dealerships are probably finding it difficult to present finance products in the most convincing way.

And that is where video comes in.

Most companies that offer various F&I products have product videos available for your use. The first step to increasing your F&I profit is to package these videos along with your dealership’s value proposition (Why Buy) videos, testimonial videos, and other finance FAQ videos on your website where they are easy for the consumer to find. Consumers know these “upsell” product offers are coming. Provide them with the opportunity to educate themselves on the various products higher in the buying cycle. 

The next step is to strategically re-introduce these videos to the consumer as they continue through the buying cycle. After you have used “video messages” when following up with inquiries (leads) and setting appointments, include these F&I videos in the “video experience” that you send to your leads to confirm appointments.

This provides the shopper with another opportunity to view the various F&I videos, and, with the right software, you can enjoy real-time reporting on the exact video content they view. When your shopper shows up for their appointment, you have insight into all the F&I videos they have watched (or haven’t watched). You know if they watched videos about purchasing with bad credit, lease vs. purchase, the impact of a divorce or bankruptcy, and all the extended warranty and other F&I product videos that you offer. Armed with this information, your team can provide a significantly better experience for each consumer, while helping them with any questions they may be afraid to ask. Both your profits and CSI Scores go up. 

For the best results, I would suggest having the finance manager make multiple videos of products on an individual basis. This personalization will increase the informational and emotional value of your videos and reward you with an even larger success ratio.

For example, your finance manager could create a video explaining why paint & fabric protection is a worthwhile investment for the consumer. Then another video explaining wheel and tire protection. Then continue to create short videos “selling” products as if the customer is sitting right in front of them. In addition, you could also create a short video with the finance manager summarizing all of the finance products.

Regardless of if you use stock product videos, or your own personalized videos, be certain to include some testimonial videos for each product.  Consumers constantly hear how they don’t need the various “upsell” products. Let them hear a few success stories from other consumers who found the product valuable. 

As the finance manager is the correct person to explain and adjust payments based on product and accessory choices, it is important for them to have that engagement and to have these product videos handy should the customer prefer to do everything online. The finance manager can then engage the customer with video via email or even live over a “one-click” video call, whatever the customer’s communication preference may be, while the vehicle paperwork is being created and sent to the customer.

Video can be used in every department to increase brand loyalty, vehicle sales, F&I product sales and service revenue. It is a highly effective tool that should be added to your marketing toolbox. However, to truly maximize the benefit of your videos, utilize your video content across multiple touchpoints as an end-to-end video marketing strategy that combines video content with video data. Then you will realize the true value of video.

Who You Gonna Video Call?

By Tim James

According to Stanford economist Nicholas Bloom, the “working-from-home” economy is likely to exist far beyond the pandemic. Employers are enjoying decreased expense in office space and increased employee productivity, while employees have more freedom with the luxury of no longer having to commute. A whopping 42 percent of U.S. employees are now working from home.

How are they able to do that? Via Video, of course.

Statistics increasingly show video as the preferred choice for consumers when it comes to media due to its viability and multiple benefits across all platforms and channels. And, during the pandemic, video has become the most used method of communication on all fronts.

Almost every company outside of essential workers is utilizing video services to efficiently continue their operations and stay in business. Video conference calls have become the norm, rather than the exception and video conferences or person-to-person video calls have exploded out of necessity.

According to Forbes, this digital pivot may become permanent – in all walks of life. Many students are having to do in-home learning and the only way some employees can continue professional development is via video. Trade shows and conferences are opting to hold virtual events First, because it is safer during a pandemic, second because it is much less expensive than in-person events, and third because viewers can choose to watch an event live, or later at a more convenient time.

Video is not going away and is certainly not losing any ground. Its popularity has exploded faster than was expected! When this pandemic eventually goes away, consumers and businesses alike will be fundamentally transformed.

As a marketing and sales tool, video will allow your team to inspire more emotion from a consumer than a text, email, or chat could ever get close to accomplishing. Think about this — when are your sales associates at their best? When they are face-to-face with a consumer, of course. An effective video marketing strategy embraces that understanding and puts your sales associates face-to-face with the consumer, even when the consumer is still at home.

Your dealership would be wise to have a video-first marketing strategy to place you in a position of dominance over your competition who may only use video as a stopgap out of necessity.

Be sure to embrace video now more than ever to take advantage of this extreme acceleration in video adoption by consumers. This will put your dealership ahead of the game and build a sound foundation from which your dealership will benefit for decades to come.

Three Tips for Great Live Video Conversations with Customers

By: Tim James

During these times, consumers are becoming more comfortable with online transactions and are much savvier about how they chose to communicate with businesses. As a result, dealers are having to utilize technologies they may not have previously embraced

Video, in and of itself, has proven to be a necessity for successful marketing for dealers. In today’s world, live video is even more important. But not everybody does it as well as they could!

A great article on Business2Community lays out some simple best practices dealerships can use while performing a live video for a prospective car buyer. These tips are great for salespeople or BDC agents who communicate with your customers.

Here are three of the top tips:

Pause! –  When you are having a conversation with someone and they do all the talking – that quickly gets old, right? A one-sided conversation is not something many people enjoy which leads to the first tip in the article, Pause!

You have the customer’s attention. You have them on a live stream and, just like selling a car in person, you need to listen to their needs and wants. You have to listen to tailor that walkaround and your conversation to supply the information they requested. Listening is also how you find out what is important to them so that you can tailor your conversation to that specific customer.

It is much more effective to listen to your customers, answer their questions, and proceed to the sale than to dominate the conversation. Take a breath. Don’t worry about the uncomfortable pause. As long as the customer is still with you, you don’t need to fill the gap with conversation. They may be digesting what you have already told them and considering their next questions. If they don’t ask any questions, you can easily prompt them by saying something along the lines of, “Should I proceed with the other features I was going to show you or did you have specific things you would like to see?” — just like you would if they were physically on your lot.

Engage – The customer didn’t agree to a live video engagement because they weren’t interested in the vehicle. The very reason that they are on a live video call with you is that they are VERY low funnel and in the market RIGHT NOW! Think about all the Internet leads your dealership gets and how hard it is to contact the majority of these opportunities. Here you not only have a customer that engaged with you but one that agreed (or requested) to do a live video call about a specific vehicle.

Perhaps something about the vehicle which they inquired about doesn’t suit their needs. Since you have them live, you can easily ask them if you could show them similar vehicles you have in stock and, essentially, show them multiple vehicles.

What’s the other option? The customer doesn’t like the one you showed them and disengages simply to move on to the next dealership. Don’t waste the opportunity to show them more inventory. You only need to ask them — just like you would if they were physically on your lot.

Eye Contact – While you may not be able to see the customer, the customer can see you. If you aren’t looking into the camera while engaging, you lose the opportunity to build rapport. Most of our communication is physical. We typically read expressions and interpret answers by how someone is looking and/or physically gesturing. In a live video, the customer can see you. By making eye contact with them, it is much more personal.

How do you do that? By looking into the camera, itself. Not just at the phone. You can practice with another salesperson beforehand to get the hang of it. When you are talking to the customer, look directly into the camera. To them, it will seem as if you are talking to them rather than seeing your eyes focused elsewhere.  — just like you would if they were physically on your lot.

Bonus Tip:

Smile – There’s magic in your smile and smiling while engaging in a video call can be one of the most important strategies for success. Smiling while on the video call will not only help you relax and improve your mood and energy, it will also help the consumer relax.  Remember, it’s not only “what you say,” but “how you say it” that matters. The video call is your opportunity to build a personal relationship with the consumer and get them to truly like you. We all know that people buy from people they like, and a simple smile while engaging the consumer is scientifically proven to improve your chances of being liked — just like you would if they were physically on your lot.  

Live video has never been more important in the sales world. Buying a car is a big decision for most customers, typically the second-largest purchase any consumer makes. Regardless of whether you are open for business completely, or only online, consumers are getting more comfortable with online shopping. If you are a veteran in the automotive industry, think about how different your communication strategy was in 2010 versus 2020.  Now imagine how different it will be in 2030. Trust me, the next ten years are going to fly by, so make sure you stay ahead of the competition and are prepared for the acceleration and adoption of this technology by consumers. Great conversations certainly lead to more sales. And live video is a highly effective way to have great conversations with your customers.

Seeing is Believing!

By Tim James

Some dealers miss opportunities to gain acceptance of service recommendations or upsells simply because consumers do not know why they are needed or important. Many advisors share the “canned” description. However, if the customer is not right in front of you it can be hard for them to understand what you are going on about and so they decline the recommendations.

Well, there is an easy solution to better communicate with your customers so they can see why the recommendations are necessary. That solution is video.

Since COVID-19 arrived on the scene video communications have dramatically increased as a way to engage with customers. Think about how norms have changed. A majority of employees are still working at home using video platforms to communicate with colleagues, such as Zoom. And, in those states where the only way to sell a car is remotely, video is a great tool to help build that relationship and sell the car. Video has become a necessary item in any dealership’s arsenal for both sales and service.

When it comes to service recommendations, using either recorded or live video, you can easily show the customer the issue and clearly describe it to them. The customer can then see what the problem is and better understand why it needs to be repaired. Also, they will feel more confident about accepting those repairs and approve the recommendations. Recommended service acceptance rates can increase by as much as three times from an average of 20% to 40% and sometimes even as high as 60%. Recorded or live video recommendations can also help prevent your customers from shopping the competition and ending up at an independent shop.

Use video technology to communicate with customers – whether that be now during the pandemic or afterward once it passes. You will see an uptick in service recommendations as well as increased customer loyalty and improved CSI scores.

Nobody knows how long we, as a nation, will be home-bound. Some people say it will be months, some are saying years.

No matter how long it is, the results of video are timeless and well-proven. Communicating with your customers via video can help you weather this storm and help boost profitability.

Why Face-to-Face Conversations are More Important than Ever

By Timmy James

 

By nature, humans are social creatures. Need more proof? One of the worst punishments our legal system has come up with is solitary confinement. Not only is this dreaded by inmates, but it can also affect their mental health. Whether an introvert or an extrovert, we all crave personal interaction.

Like many of you, I am currently working from home. And, at the end of one day last week I had an impromptu meeting with one of my customers. The meeting started on the phone but, after 15-20 minutes of the call, we decided to switch to a live-stream one-on-one video call. While we continued talking about the business matter, the conversation quickly changed into a personal chat. Just two people who have been working from home for many days now. While we both interact with people throughout the day, most interaction is via the phone or text. When we switched to the live-streaming video call, emotions changed into joy and excitement that we were having a personal, live, face-to-face interaction with an individual outside of our homes.

Even before this health crisis, people wanted to have live interaction. That’s exactly why sales managers are renowned for telling salespeople to “Just get them in.” Of course, at the moment, we have a quandary. Many salespeople are out of work, CRMs are still spitting out the same messages and consumers are still shopping for vehicles… but nobody is answering them.

We’re dealing with a situation unlike anything seen since the measles or polio breakouts decades ago. The entire country is hunkered down, sitting at home with their families. And many are very bored. What do people do when they are bored? They tend to accomplish tasks they’ve been meaning to but have not yet found the time for. And guess what? This could very easily include researching a vehicle purchase. 33 states have either halted or limited vehicle sales forcing salespeople to stay at home. However, in many cases, their CRMs are still receiving leads. OEMs are offering aggressive incentives and interest rates are low.

Car sales are all about emotions. That’s why the standard has always been to get the customer to test drive, kick tires, breathe in that “new car” smell and take mental ownership. However, before any of that can happen, a salesperson or BDC agent needs to create rapport to get that specific customer to choose their dealership.

Customers currently don’t have the luxury of visiting the dealership. But you can approach that level of face-to-face contact with live video chat. It builds the rapport needed for the customer to decide who to buy from and what to buy. Your dealership can interact with these customers in a personal way while building that emotional relationship with the salesperson, the dealership AND the vehicle. And what do those interactions produce when doing this via live-streaming video calls? The same as it produced for me and my customer — Joy and excitement. It helps move that customer down the line to the sale.

Many dealerships are experimenting with virtual test drives and video calling to provide that in-store face-to-face experience right now and having amazing success. But like all sales processes, it must be done right to have the most effective impact. Many of the popular video calling platforms out there require both users to install plugins or download the same apps to assure cross-platform and cross-operating system compatibility. These platforms are great for organized meetings, entertainment, or educational purposes. But when you need to engage a customer or a lead from your website, or for email/texting communications, the best video calling technology to utilize is one that allows a “one-click” audio and video communication to work inside web pages through direct peer-to-peer communication. This eliminates the necessity to install plugins or download apps and ensures an instant video connection; no matter what device or platform the customer or lead is utilizing.  This could alter the entire experience completely and make the difference between a GREAT video experience, and no communication or experience at all (another lost lead).

So, consider using live video chat to have that face-to-face interaction with your customers that is very much desired, especially right now. Combined with good storytelling through strategic vehicle and dealership marketing videos, it could easily slingshot your dealership into a consumer’s first choice. Not just in these times when it is even more crucial to communicate this way, but also when everything goes back to normal. And now is the time to start planning for the future. You don’t want your competition to beat you and take your customers away!  Get that competitive edge and create those loyal customers now!

How to Take Advantage of the Rising Popularity of Video Marketing, right NOW!

by Tim James, COO, Flick Fusion

You don’t have to look very far to see that Video Marketing is the future of digital marketing. Not only is it cost effective, easy to create and use video online, but consumers favor video on almost every platform.

If you are a dealer, video is too important to overlook. While it is popular now with marketers and consumers, that popularity will be even larger over the next few years.

Here are three things fueling the growth of video marketing over the next five years and beyond. Along with some simple tips you can use to stay ahead of the trends in 2020.

  1. 5G is coming…

The world is on the edge of a communication revolution. 5G networks will be rolling out in the US by the end of 2019. Since most mobile devices are already designed for viewing video and downloading large files, the real innovation for video in a 5G world will be Augmented Reality.

For example, Panera Bread recently launched an AR ad unit for mobile devices. Consumers can project and rotate menu items and share the content across popular social media channels. The idea is to add transparency and increase engagement. For your dealership to be competitive, it makes sense to incorporate AR advertising and image overlays into your 2020 marketing strategy. A consumer can’t really “see” a car by reading a monroney sticker. They can, however, kick its virtual tires online and cruise through and around it via video. Imagine car shoppers interacting with a vehicle walk-around video right in their own homes.

Some other major national brands and games have found success with AR applications. Snapchat filters are wildly popular among younger generations and are a great example of how simple overlaid images can enhance the user experience and help spread brand awareness.

  1. 70% of the workforce will be millennial or younger over the next 5 years

Speaking of younger generations, 70% of the workforce will be millennial or younger over the next 5 years and their purchasing power will continue to rise. Millennials, Gen Y and Gen Z consume video for more than just entertainment. They use it to guide them in everything from fixing their own washing machines, to learning about brands and products. This then influences their purchasing decisions.

According to a consumer study by Animoto, 8 out of 10 millennials find video helpful when researching a product or service. In fact, they are 85% more likely than baby boomers to purchase if they can watch a video explaining it first.

How can your dealership take advantage of this? Include demo videos on product pages as consumers prefer product demo videos over still images. Placing video on your website increases conversion by 80%. Also, having video on a website makes it 53 times more likely to make it on Googles 1st page. In addition, email open rates increase by 7% when the word “video” is in the title. So, it make sense to include video as part of your lead follow up process.

  1. By 2020, most content will be video

In 2016, Facebook predicted that almost all of its content would be video. Since then video consumption has increased by 100% per year. By 2020, 80% of all digital content will be video. 6 out of 10 consumers prefer video over television. Not only is video the consumer’s preference, it can also reinforce your brand because viewers retain 95 percent of a message that they watch through video.

Video continues to dominate every form of content delivery, and somehow manages to break its own records year after year. Video content is here to stay. Not only is it here to stay, but marketers that fail to use it – and fail to have a robust mobile and video strategy – will quickly find themselves left behind eating their competitors’ dust. And, more importantly, left behind by their potential customers.

Decide now to increase your video content production efforts so you are ahead of the competition in 2020. Include video on your website, use it for more effective customer follow up and make it a core part of your overall marketing strategy. It is what consumers want, and your profit margins will probably agree.