How to Maximise Your Dealership’s Add-On Product Revenue

With less than three months left of 2018, car dealers may be feeling the pressure to meet financial goals. Value-added products could be an important focus for improving takings.

The key to selling add-on products like GAP insurance, paint protection service plans and warranty packages is actually understanding how much they can benefit consumers.

GAP Insurance

After a 2014 study revealing that people were paying too much for GAP insurance, the FCA encouraged buyers to shop around more, aiming to create more competition between car dealers selling it as an add-on and direct sellers offering it as a standalone product.

More recently, the FCA’s evaluation of the intervention contradicted the results that the body was expecting, with add-on sales still proving far more popular, accounting for 92% of the market. This just goes to show what a great opportunity dealers have to introduce GAP cover to customers and convince them of its benefits.

Insurance Distribution Directive

Now we are in October, the Insurance Distribution Directive (IDD) has taken effect, requiring dealers to review their insurance products and staff training processes and ensure the way in which they are operating is compliant with IDD regulations.

GAP providers should be offering high quality products, which are good value for money, as well as giving retailers the latest product support. The change should help you to deliver a better, more transparent service to your customers, making it easier to identify the need for the cover and helping to improve your sales performance.

Make sure your insurance products are competitively priced and that you are confident in the benefits that they bring to buyers. Your sales processes should be well-thought out and implemented consistently by your team too. This will ensure that your dealership is in the best position to maximise add-on sales.

Add-On Sales Performance Management with Click Dealer

If you want to improve your add-on sales revenue, ClickDMS can help you keep track of performance so that you have visibility of the impact of your efforts. Simply enter the costs of all of the products you offer into our system once, and when you make a sale, you’ll just need to click to add them to the deal.

When you want to know the profit that you’ve made on these products at the end of the month, our system will do the calculation automatically, saving you the time and effort of working it out manually.

Add-On Product Promotion with Click Dealer

Another way in which Click Dealer can help with add-on sales is by making changes to your website. Insurance providers should be able to equip you with IDD-compliant materials and Click Dealer will be able to upload guides and videos to your site to help promote the products you offer.

ClickEngage™, will always take customers through the value-added products on offer and you can also opt to have promotional material featured if you are using this software to help users understand and see the benefits of them.

For further information about how Click Dealer can help you improve your add-on sales performance, get in touch today via marketing@clickdealer.co.uk, 01782 478220 or through our contact page!