Video F&I Presentations: Use 'Em or Lose 'Em?

"Dealers and F&I managers are always looking for a magic bullet - that new product, sales technique, word track or close that will easily get customers to buy F&I products. The latest magic bullet is the video F&I product presentation."

 

Video F&I Product Presentations… Use ‘Em Or Lose ‘Em?

By Ronald J. Reahard

Dealers, F&I managers, product vendors, (and F&I trainers!) are always looking for a magic bullet… that new product, sales technique, word track or “close” that will magically get customers to buy F&I products with little or no effort.  Whether it’s menu selling software, a new closing technique, or a video product presentation where dad slowly fades out of the family picture when he dies, hope springs eternal that someone has found a quick, easy, and foolproof way for an F&I manager to sell more F&I products in less time with less work. 

The latest magic bullet is the video F&I product presentation, shown to a customer either prior to, or once inside, the F&I office.  While video F&I product presentations have been around for several years, today there are literally dozens of companies that offer them in various formats and permutations.  Some video F&I product presentations are shown by the salesperson in their office using a portable DVD player, others on a TV in the customer waiting lounge, while most are shown in the F&I office on a separate computer monitor.  All are advertised as a surefire way to increase F&I product sales.  The question is… should you use ‘em, or lose ‘em? 

The typical video product presentation is four to eight minutes in length, and highlights the various F&I products the dealership offers.  Some are animated presentations with music and cartoon characters, some use computer graphics, while others use a professional spokesmodel to inform the consumer of the products available in connection with their purchase.  The best videos are low-key with no sales pitch whatsoever, and often begin with a brief introduction by the dealer thanking the customer for their purchase.  The worst are obnoxious infomercials that spew forth product benefit after benefit.  The idea being, customers will buy anything if you just pile on enough benefits. 

If your dealership is considering using an F&I video product presentation, there are some things to keep in mind.  First it needs to be a low-key, high quality production with the intention of informing the customer of the options available in connection with their purchase.  It must be professional, informative, and educational.  It CANNOT be a sales pitch.  The litmus test should be... would you want your best friend or a family member to sit through it?  The last thing we want to do force a customer to endure an obvious sales pitch, creating sales resistance before we even have a chance to discuss why a particular product may be of benefit to them and their family.  A video presentation that attempts to sell products, as opposed to educate and inform the consumer, is a disservice to them, your F&I manager, and the dealership. 

One benefit of a video presentation is that it does provide a consistent process.  In the F&I office, it is absolutely critical that you have a consistent F&I process.  When a process becomes consistent, it becomes sustainable.  Only after a process becomes sustainable does continuous improvement become possible.  Consistent performance and along with continuous improvement is what every dealer should expect from their F&I department.

A consistent process will help improve performance, ensure compliance, and can also improve CSI.  One of the major benefits of a video presentation is that it gives a consistent presentation of every product to every customer.  A video presentation is never in a bad mood.  It never calls in sick, has a bad day, or gives an abbreviated presentation because it’s late and it’s time to go home.  Plus it delivers the same message to every customer... every time.  Customers will buy products you would never expect them to buy, simply because that product was offered and explained to them. 

When used consistently, a video F&I product presentation delivers a clear and concise message about every F&I product that every customer needs to hear, and does it in a relatively short period of time.  Reducing the time customers spend waiting to come into the F&I office, as well as the time they spend in the F&I office, is critical to improving CSI.  The more time it takes to complete the F&I process, the lower the CSI. 

A video presentation can also play an important role in improving compliance.  Every customer is entitled to know all the options available (Not just the ones we want them to buy, or the ones we make the most money on!) in connection with their purchase, and have a professional answer their questions and help them make an informed decision about those options.  When a video presentation is used consistently, it ensures every customer was offered every product every time. 

Randy Seeker, F&I Director at Scott Honda of West Chester, PA, says they have been using a video product presentation for about three or four months.  He feels its greatest benefit is that it helps keep the dealership compliant, and it has reduced the time some customers spend in the F&I office.  According to Randy, “It has also helped us sell a few additional products.”  At Scott Honda, the sales person picks up a portable DVD player from the F&I manager when they sell a car, and the salesperson shows the customer the video presentation before the customer comes into the F&I office. 

While the video has received mixed reviews from some salespeople, according to Randy, “It has made it easier to open up a conversation about the products with some customers.”  This allows F&I managers to immediately focus on those products the customer feels are valuable to them, close on those products, and then offer the customer an option package that makes sense for the customer.

Another benefit of a well made video presentation is that it can help occupy the customer’s time in the event there is a wait before they can go into F&I.  Let’s face it, purchasing a new vehicle is an emotional, anxiety filled experience for a lot of consumers.  The video can help slow a customer down, reduce that anxiety, put them at ease, and allow them additional time to consider their repayment, risk management, and vehicle protection options prior to coming into the F&I office.  Just as important, when the F&I manager reviews the menu with the customer, the customer already understands the product, and may have already made a decision as to which product(s) make sense for them.
 
Unfortunately, the problem with any F&I “presentation,” whether by a video, or by an F&I manager, is that many customers immediately recognize someone is about to try and sell them these products.  So they turn off, tune out, and stop watching.  Today’s consumer doesn’t want to be sold anything.  They want a knowledgeable professional capable of reviewing their options, answering their questions, who can help them to make informed decisions about those options, based upon their unique needs, with no pressure to buy anything. 

Jeff Henry, F&I Manager at Kelly Cadillac-Saab-Subaru-Hummer in Chattanooga, TN has been using a video product presentation with the majority of customers in the F&I office for about a month.  According to Jeff, “We are considering moving it out of the F&I office, to allow the customer to view it just prior to coming into F&I.”  While it’s still too early to tell how effective it really is, Jeff feels “it has probably helped increase our sales of tire and wheel road hazard and environmental protection.”  With the other products, he hasn’t seen much of an impact.  “With most customers, it keeps their attention for about half of the video,” he says.  “Then they just ignore it.” 

The reality is, a video F&I product presentation is not a magic bullet.  There is no magic bullet.  Selling F&I products is like building a house.  Just as the most important part of a house is its foundation, the most important part of selling F&I products is the needs discovery process.  If you don’t discover any customer needs, you have no foundation on which to build the sale of your products.  You can only learn customer needs when they’re talking and you’re listening, not when they’re watching a video. 

Every customer is unique, and every customer has unique needs.  To ensure every customer receives a thorough explanation of their options in a minimum amount of time with a maximum chance of F&I product sales, the financial services process must follow an organized, consistent format.  While a video F&I product presentation does help ensure a consistent process, each product presentation must still be tailored to the customer’s unique needs.  An F&I professional must discover a need the product will fill or a problem it will solve, so there is a basis for a discussion of that product with the customer. 

Customers are entitled to know what their options are, and they deserve a knowledgeable, enthusiastic product presentation.  The value of your products is equal to the value of your presentation.  If a video product presentation provides customers with a more consistent, knowledgeable and enthusiastic presentation of F&I products than your F&I manager, your dealership will no doubt see an increase in F&I product sales and profits with a video product presentation.  However, if your F&I manager is giving every customer an enthusiastic, needs based presentation of every product every time using a menu, the impact of implementing a video product presentation will probably be minimal. 

The best way to determine if you should use a video F&I product presentation is to first examine your current performance.  If you feel there is significant room for improvement, evaluate several video F&I product presentations.  Try one for 30 days, and ask your customers if they liked watching the video.  If they enjoyed it, if they felt it helped them understand their options so they could make an informed decision, then it should be part of your dealership’s sales and F&I process.  On the other hand, if they felt it was a waste of time, they resented being asked to watch it, or felt it was a six minute sales pitch, it should not be part of your sales process.  The key- listen to your customers!  Watch their reaction before, during and after they watch the video.  Then, and only then, can you decide whether you should use it… or lose it.