Lights, Camera, Action! Training with Technology Matt Nowicki, Director of IT, IAS.

Lights, Camera, Action!Training with Technology

Matt Nowicki, Director of IT, IAS

Credentials

• I have never worked F&I.• I have never worked at a dealership.• I have never been, nor worked for an agent.

• 12 years as Chief Software Architect for IAS’ SmartDealerProducts– Designed first ever transaction based F&I video

recording tool, SmartEye.

Overview

1. SmartEye/Video Recording Solutions2. Example: Before and After3. Keys to Success

a. Review and Training Planb. Utilization Plan

4. Case Studies5. Legal Concerns and Litigation History6. Q&A

SMARTEYE/VIDEO RECORDING SOLUTIONS

Lights, Camera, Action! Training with Technology

SmartEye Solution

• 1,000 dealerships installed• 1,000,000+ transactions recorded• 1,000,000+ lawsuits avoided

• $200,000,000 in additional profit for dealers*

SmartEye Solution

• Typical recording systems:– Record all day, every day– Must know exact date/time to locate a customer

• Transaction based recording:– Date/time stamped video with audio– F&I manager, customer, vehicle details

• Stored in a web-based searchable database

SmartEye Solution

SmartEye Solution

• Locate by customer:– Customer name– Stock number– Deal number– F&I Manager

• Locate by vehicle:– Year, make, or model

• Locate by key F&I metrics:– VSC sold?– GAP sold?– Tire/wheel?

• Locate by custom fields

EXAMPLE: BEFORE AND AFTERLights, Camera, Action! Training with Technology

Example: Before and After

• Video recorded within the first week of camera installation

• Intentionally chose an F&I manager that mostly does things right

• Sample video:– Base payment is $340– Preferred payment is $400 ($60 increase)– Hyundai vehicle with 10/100,000 powertrain


VSC critique:

1. Menu is “The next thing I have to go over”2. No distinction between package and products3. Air conditioning not covered by Hyundai?


GAP critique:

1. Tells customer they don’t need it!2. “After the first year you should be in pretty good

shape” – now tells the customer NOT to buy it


Windshield critique:

1. Never talks about road hazards and their frequency2. Can Hyundai windshield be replaced for $180?3. Doesn’t elaborate on unlimited nature of program4. Never asks how much insurance premium is


Menu Close Critique:

1. “Shows what your payment if you were to add them all up”

2. $60 increase x 48 months = $2,880 --- NOT $8,000!3. After customer declines coverage he never asks why4. Never handles objections because he never hears

objections5. Instead, he discloses that life/A&H are available too


Critiques from other recordings:

1. Too much time on menu pitch2. Pitches VSC refund during menu presentation3. No use of sales tools4. “The VSC is probably $30-$35 of that increase…”5. Throws out every product but one6. “Maybe a few of these smaller products?”7. Didn’t explain that menu payment includes vehicle


• Six months later his skills have changed drastically

• Sample video:– Base payment is $378– Preferred payment is $455 ($77 increase)– Hyundai vehicle with 10/100,000 powertrain


VSC critique:

1. Massive improvement in product knowledge2. Quickly describes a long list of covered, expensive

items3. Mentions “100,000” multiple times4. Handles objection in advance with “savings account”5. Spends less than two minutes


Menu close critique:

1. Talks about total car payment “including protections”

2. Reminds customer of what they forfeit by description, not just name

3. Asks them to choose, then shuts up!


Handling total package cost - critique:

1. Listens to customer and then interrupts before it becomes an objection

2. Corrects the customer’s math and gives the true package cost but offers nothing else


Handling “decide now?” objection:

1. In earlier videos, he would have said “if you can let me know within like 24 hours…”


Use of “budgeting” critique:

1. Handles the “wait and pay when it comes up” type objection

2. Turns that objection immediately into a positive with “budgeting” close


Subtle use of VSC refund critique:

1. Instead of trying to re-sell VSC he tells them about the VSC refund again but in a totally different way


Fuel savings critique:

1. Previously he would have immediately thrown out VSC or gone for just one “smaller” product

2. Customer sees value in the products and he immediately uses fuel savings to show them affordability


Payment matching critique:

1. Lowers price by $5 per month and again stresses fuel savings to close the deal

Customer purchased the full Platinum Plus package on this deal!


• Overall changes:

– Before: • $400 PRU• Frustrated customers/High cancellations

– After six months: • $1200 PRU• Satisfied customers/Reduced cancellations

KEYS TO SUCCESSLights, Camera, Action! Training with Technology

Keys to Success

1. Develop review/training plan – Who will review– What will they look for– How to follow up with the F&I manager

2. Develop a plan to ensure 100% utilization– Reward F&I managers for utilization?– Punish F&I managers for non-utilization?

KEYS TO SUCCESS:REVIEW AND TRAINING PLAN


Keys to Success: Review and Training Plan

Video recordings aren’t just for protecting the dealer…

They are the perfect training aid!

Keys to Success:Review and Training Plan

GAME FILM + TRAINING = RESULTS!

Keys to Success:Review and Training Plan

• Expectation examples: Established rapport with customer Utilized a menu to offer products Reviewed vehicle base payment and cost Reviewed factory warranty details Reviewed factory survey process Attempted to overcome objections on 1+ products Utilized physical tools and/or evidence manual Offered a term extension or “a la carte” products


• Set specific expectations then review based on these expectations

• Create a compliance report card that will give each reviewed video a compliance grade– Quantifiable measure– Non subjective


• Who should review transactions?– F&I managers

• Review themselves• Review each other

– F&I directors– General agents– Outside training entities (Ron Reahard, GVO, etc.)


• How often should videos be reviewed?– Pick a manageable number of reviews per F&I

manager per month– Each F&I manager should have the same number of

reviews each month

• How should results be delivered?– One on one coaching– Monthly/weekly F&I meetings

KEYS TO SUCCESS:UTILIZATION PLAN


Keys to Success: Utilization Plan

• Reward F&I managers for compliance:– Bonuses for top X managers at store/in group– Modified pay plan– Call out during monthly manager meetings

• Punish F&I managers for non-compliance:– No video, no pay– Three strikes and you’re out– Call out during monthly manager meetings

Keys to Success: Utilization Plan

• Monitoring usage:– Daily emails– Reports on

demand– Number of

recordings vs. number of deals

CASE STUDIES(PRU INCREASES & OTHER RESULTS)


Case Studies

• Texas dealer group – 15 stores, 10+ years– Reviews and training:

• External/internal audits• Heavy focus on identity verification• Sales expectations

– Utilization plan: Three strikes, you’re out– Results:

• PRU increases of $400+• Elimination of litigation and “he said, she said”• Fraud prevention

Case Studies

• Michigan dealer group – 30 stores, 5+ years– Reviews and training:

• Internal audits plus general agent audits (20 per week)• Unique 12 point scoring system

– Utilization plan: Warnings, then termination– Results:

• PRU increases of $200+• Apollo objection handling• Dependence phrases – “cool”, etc.

Case Studies

• Virginia dealer group – 15 stores, 8+ years– Reviews and training:

• External audits (10 per week) plus detailed trainer audits• Lowest compliance grades across group are called before

management monthly– Utilization plan: No video, no pay– Results:

• PRU increases of $350+

Case Studies

• California dealer group – 2 stores, 3+ years– Reviews and training:

• F&I managers review each others transactions• Each manager chooses best/worst transaction from their

counterparts each month• Best/worst are reviewed monthly

– Utilization plan: Component of pay plan– Results:

• PRU increases of $450+

LEGAL CONCERNS AND LITIGATION HISTORY


Legal Concerns and Litigation History

• Can you record?– State by state guidance– “One party” vs. “Two party”– Audio vs. video– Disclosures (required vs. recommended)

• Should you record?– Follow Keys to Success

Legal Concerns and Litigation History

• “Fishing Expeditions”– One occurrence in 10 years

(25 customer videos)– Dealer exonerated

• Litigation History:– ZERO lost lawsuits

• “Good” Subpoenas– F.B.I– State Police– Local Police

CONCLUSION AND Q&ALights, Camera, Action! Training with Technology

Lights, Camera, Action! Training with Technology Matt Nowicki, Director of IT, IAS.

Documents

Transcript of Lights, Camera, Action! Training with Technology Matt Nowicki, Director of IT, IAS.