Contributing Author: Brien Joyce, Vice President, Specialty Channels, EFG Companies
2014 marked another record year for auto sales, and subsequently more lenders expanded their portfolios into the subprime realm. With dealerships having an average of 10 lenders with which to place loans (according to Dealertrack technologies), lenders are now concerned with sustaining 2014 results and staying ahead of the pack. Smart lenders have taken the opportunity to increase loan volume by tapping into a rising dealer need and providing complimentary consumer protection products on their loans. Examples include vehicle return, limited powertrain, tire and wheel coverage, etc. with an option to sell upgrades. However, this also means that lenders need to be extremely selective as to whom they choose as their F&I product administrator. That company’s customer service will ultimately directly affect dealership, and therefore lender, profitability.
With 2015 just ramping up, now is the time to pay attention to what makes a product administration partner reputable and dependable. Those proof points can help overcome consumer concern in the F&I office, as well as increase customer retention for both your institution and your dealership partners.
Proof points to pay attention to include the company’s investment in customer service training and technologies, customer service awards and recognitions, and professional certifications like the National ASE Blue Seal of Excellence. However, what really sets a product administrator apart is transparency. When evaluating whether your product administration partner is holding you back, consider whether they provide information on:
- the number of claims processed quarterly and annually;
- the percentage of claims paid;
- how quickly claims are paid;
- the average call time;
- the call abandon rate;
- the average availability of a service provider or claims adjuster; and,
- the amount of good will provided.
With this information in hand, you have a better picture of whether their processes reflect positively back on you. Remember that if your loan provides complimentary F&I products, your dealership partners’ customers will associate their claims service experience with your client. A good experience could cement their loyalty and cultivate return business; whereas, a bad experience could send the customer elsewhere when shopping for their next vehicle and send that dealership looking for a different lender.
Also, consider your personal dealings with your product administration partner. Do they make themselves available to you on your schedule? It’s a good bet that if the administrator is a strong business partner and is actively engaged with you and your field representatives, then they will provide a similar customer experience level to the end consumers. The hallmarks of client service for a good product administrator include:
- working with you to determine which products best match your market and competitive set;
- being nimble in developing products that can accomplish business goals by meeting dealer needs;
- being available by phone or email at any given time;
- providing training and one-on-one coaching with your field representatives and/or dealership partners on the benefits of the products, how to sell them, and how to overcome objections; and,
- staying up to date on compliance and providing training, audits and strategies for your institution to stay in compliance with both current and new regulations with a client services team that is 100% AFIP certified.
EFG has long recognized the importance of providing the highest level of client engagement to empower our business development team to truly learn the ins and outs of your business, including the unique challenges you face. For close to 40 years, EFG has striven to innovate and administer quality consumer protection products that benefit its clients, as well as the end-consumer. The company prides itself on being a claims-honoring organization, and is constantly monitoring and adapting its efforts to serve customers. Our high-integrity claims administration model combines efficiency, responsiveness and reliability, resulting in:
- superior customer service with a team of claims adjusters that are ASE certified and have an average of 15 years of experience;
- 95.88% of claims calls answered within 90 seconds;
- A claims call handle time benchmark at 5:30 minutes, while the industry average is 10 minutes;
- 96% of all claims paid by corporate credit card within one hour of receipt of invoice.
Instill confidence within your dealership partners and drive loan volume today! Contact EFG to unleash our profit potential.