As more and more car purchasing goes digital, Zurich Area F&I Manager Michael Naim says dealerships that offer "Why Buy Here" programs will retain more in-house and local sales.
“There is tremendous value for the dealership in offering a Why Buy Here program," Naim said. "First, the program differentiates you. Packaging products and wrapping them around a vehicle can create a much more compelling proposition for customers. Beyond that, these programs drive business back to your dealership for service."
Another benefit of the program is that "the premium dollars associated with the cost of the products become part of your reinsurance portfolio, generating additional profit," according to Naim. "It is often quite eye-opening for customers when they see how these programs can shift the cost of marketing and advertisement dollars to create income and become part of their reinsurance portfolio. These programs, when well-designed and executed, can drive so much value and profit to the bottom line.”
Digital automotive sales continue to grow due to its convenience, flexibility and experience, according to the Summer 2022 edition of Zurich's Dealer Principal.
According to Hedges and Company, it is projected that the global automotive industry will end 2022 with eCommerce sales of $38 billion. Out of that $38 billion, $19.8 billion is attributed to eCommerce websites/first-party sales and $18.3 billion to third-party marketplaces sales.
In the Summer 2022 edition of Zurich's Dealer Principal, Naim shared his insight on how dealerships can retain more sales offline by offering a Why Buy Here program. Naim states that dealerships need to offer something that makes them unique, gives them a competitive edge and offers a customer experience superior to that of online shopping.
“Dealers need to offer something that makes them unique and gives them a competitive advantage," Naim said. "Today’s consumer expects a superior experience and greater value, the dealer who can present a better overall buying experience, coupled with a value package that stands out, will sell more cars and generate more gross profit. Let’s be even more clear, you need to give customers a compelling reason to buy from you or you’ll become obsolete.”
According to the Zurich publication, a Why Buy Here program not only will set a dealership apart and drives business back into the dealership itself, but also allows for products in the packages to become a part of one's reinsurance program, helps with retention and shifts the costs of marketing and advertising back into the company as income.
Some suggested components of a Why Buy Here program includes a lifetime engine warranty, basic maintenance packages, a one-year environmental protection plan or a dealership limited warranty.
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