When it comes to selling cars, creating a memorable customer experience is essential in increasing referrals, driving repeat business, and boosting retention for ongoing services.
For many auto dealers, the topic of customer service might evoke thoughts of elegant showrooms and engaging staff. While these are important, what’s often overlooked is the impact that F&I software can have on the car buying process. From cutting the post-sale waiting time to reducing employee burnout, adopting the right tech can transform your customer experience.
The Role of Customer Experience in Auto Sales
Delivering an excellent customer experience is essential to the success of any business, and that’s not lost on the auto industry. According to a report conducted in partnership with NADA, 77% of dealers reported that improving customer experience was their top priority for 2023, making it the #1 strategic initiative across the industry.
Fortunately, those efforts seem to have paid off. According to the 2023 Cox Automotive Car Buyer Journey Study, shopping experience satisfaction rates increased significantly that year, from 61% in 2022 to 69% in 2023. This jump was disproportionately propped up by the used vehicle sector, which increased from 58% to 68% over that same period.
Moving the needle on customer experience isn’t just good for long-term branding– it can have real, tangible results. According to InMoment data, the average dealership sees an increase of $147,348 in annual average revenue by raising its customer satisfaction score by one point. In other words, it’s no longer a matter of whether customer experience matters in the industry, but how to use it to grow your business.
Automating F&I Auto Sales and Financing
The need for F&I automation has become increasingly relevant, especially with the steep cost of department staffing. In the previously mentioned NADA report, the average F&I headcount rose to 4.4 employees in 2022, up from 3.1 before COVID. As many dealerships are finding, automating lengthy and repetitive steps can help businesses save on overtime and additional hiring.
Traditionally, finance teams can get bogged down by administrative responsibilities like customer screening and paperwork processing. While these tasks are necessary for business operations, they don’t generate any revenue on their own. That means that additional time spent completing these steps can cut into profit-generating activities.
That’s why many dealerships are adopting solutions to manage their routine F&I tasks. From ID scanning to automating insurance verification, upgrading your tech stack can go a long way toward freeing up bandwidth for your team.
How F&I Technology Improves the Customer Experience
Decreased wait times
Expectations for speed are on the rise as consumers become increasingly accustomed to digitally-enabled processes. In fact, a recent customer experience report found that two-thirds of consumers say that speed is as important as price. Even in auto sales, data shows that shortening F&I wait times by just 15 minutes can increase your NPS score by 19 points.
Equipping your finance department with modern tech is a critical step in streamlining customer interactions. For instance, CheckMy Driver cuts the insurance verification process from more than 30 minutes on average to roughly two minutes. With its AI-powered adequacy engine, it automates everything from document retrieval to analysis, providing actionable insights and recommendations, not data and more work.
Reduced employee burnout
Additional steps in the car buying journey aren’t just a burden on your customers– they can also take a toll on your team. Scientists have found that monotonous tasks can have a negative impact on mental health. In a dealership setting, this stress can end up trickling down to the customer, resulting in a negative buying experience.
That’s why dealerships are increasingly adopting software to handle this type of work. Many modern solutions can digitize traditionally manual tasks like document analysis, paperwork processing, and data entry. With the time employees save, they can focus on more energizing work like research or networking.
Enhanced personalization in each transaction
As businesses strive to differentiate from competitors, personalization is a key method in getting customers’ attention. According to Deloitte research, brands that excel at personalization are 48% more likely to have exceeded their revenue goal.
Incorporating tech into your processes can further this goal in more ways than one. To start, by freeing up time spent on administrative tasks, your team can dedicate more resources to calling prospects, conducting research, and building connections. This can go a long way in managing more complex customer needs that can’t be handled with automation.
On top of that, in some cases, software can even have a direct impact on personalization. For instance, CheckMy Driver offers an insights feature that provides you with enhanced information on your leads as early as pre-qualification or test drive. With this advantage, dealerships can take a strategic approach to how they market and sell to their customers.
Start Investing in Customer Experience
Ready to upgrade your dealership experience? CheckMy Driver can help you automate insurance verification, set up coverage monitoring, and gain enhanced insights for a streamlined buying process. Talk to our team to learn more.