Monday, September 22, 2008
Building Value in the Sale
I often get asked about building value in a conversion technique
Quite often when running a training course, delegates tell me that ‘in the real world’ it is almost impossible to get customers to convert from using their preferred funding source to using the dealer's funding source.
The reason I'm often given first is the simple fact that the customer's bank or personal lending source is usually cheaper than the dealer funding option.
So let's be brutal about this, in this particular situation, your customers have an expectation that your funding option is going to be more expensive. They know that you're in selling mode, they are expecting you to sell them something and they may feel that ancillary sales may be more expensive from you them from others, and funding options are no different.
So service that expectation, make them understand that you have additional features and benefits on the product and service you are offering that far outweigh any additional cost that your product, funding or otherwise, may attract
A clearer illustration of this is if you're selling somebody a high range model. Don't be afraid of telling them that they could save themselves a fair few pounds on the cost of acquiring the vehicle. If they are happy to lose some of the features and benefits, CD player, sat nav, air con, etc.
Conversely, if they want to retain the additional features of the model chosen, they must understand that there is a premium price, chargeable over and above that of the base model. This is exactly the illustration that you need to use when talking to them about converting their funding route or preferred method of funding from direct lenders, personal lenders and their bank to your dealer funding option.
Your dealer funding option has clear additional features over and above those offered by direct lenders and Banks, which in turn have their own substantial personal benefits to your customers: For example, protection under the consumer credit act, termination and repossession rights (halves and thirds), and of course the eponymous early settlement calculation. Your funding option also comes with the additional feature of protection under the data protection act. A safety feature, that does not and will not apply to any personal lending.
It is vital that you understand that the banks & personal lenders will quite often advertise lead rates, which some customers may qualify for, but the majority don’t. Critically those banks and direct lenders have an additional and very substantial revenue stream from the sale of personal information, which is neither regulated by the data protection act, nor controlled by the information Commissioner's office in which customers electing to use a personal lending facility opened themselves up for.
Get your customers to ask themselves this question. Where did your junk mail come from?. Today, junk mail lists will be driven by the financial transactions that that customer undertakes. Every time your customer renews or refreshes their personal financial information with their lender of choice, that lender has a substantial commercial advantage and opportunity to trade, sell or share that information with other commercial organisations, which may want to sell products or services to your clients in future.
Consider this summary: 'Our funding option may be a little more expensive than your funding option Mr(s) Customer, but we believe that your financial information should remain confidential, and if you’re no longer borrowing the money, why should you pay interest on it ? This is why we will never sell or trade your private details to anyone, and if you want to settle off the loan early, we will secure you a rebate of the remaining interest on the loan. Your bank will not do either of these things'.
Make this is your opportunity to ask your customers when the privacy and data integrity are important to them. This is a substantial feature that your customers may pay a little more for in their monthly payments. But you can guarantee them that no junk mail will come from your lender, that your lender will not share information with any other commercial third parties, and that their confidential information remains exactly that, confidential. Your option gives your customer Privacy, Security and Protection that a direct lender or Bank will not, and many customers believe that’s a benefit worth paying a little extra for.
Quite often when running a training course, delegates tell me that ‘in the real world’ it is almost impossible to get customers to convert from using their preferred funding source to using the dealer's funding source.
The reason I'm often given first is the simple fact that the customer's bank or personal lending source is usually cheaper than the dealer funding option.
So let's be brutal about this, in this particular situation, your customers have an expectation that your funding option is going to be more expensive. They know that you're in selling mode, they are expecting you to sell them something and they may feel that ancillary sales may be more expensive from you them from others, and funding options are no different.
So service that expectation, make them understand that you have additional features and benefits on the product and service you are offering that far outweigh any additional cost that your product, funding or otherwise, may attract
A clearer illustration of this is if you're selling somebody a high range model. Don't be afraid of telling them that they could save themselves a fair few pounds on the cost of acquiring the vehicle. If they are happy to lose some of the features and benefits, CD player, sat nav, air con, etc.
Conversely, if they want to retain the additional features of the model chosen, they must understand that there is a premium price, chargeable over and above that of the base model. This is exactly the illustration that you need to use when talking to them about converting their funding route or preferred method of funding from direct lenders, personal lenders and their bank to your dealer funding option.
Your dealer funding option has clear additional features over and above those offered by direct lenders and Banks, which in turn have their own substantial personal benefits to your customers: For example, protection under the consumer credit act, termination and repossession rights (halves and thirds), and of course the eponymous early settlement calculation. Your funding option also comes with the additional feature of protection under the data protection act. A safety feature, that does not and will not apply to any personal lending.
It is vital that you understand that the banks & personal lenders will quite often advertise lead rates, which some customers may qualify for, but the majority don’t. Critically those banks and direct lenders have an additional and very substantial revenue stream from the sale of personal information, which is neither regulated by the data protection act, nor controlled by the information Commissioner's office in which customers electing to use a personal lending facility opened themselves up for.
Get your customers to ask themselves this question. Where did your junk mail come from?. Today, junk mail lists will be driven by the financial transactions that that customer undertakes. Every time your customer renews or refreshes their personal financial information with their lender of choice, that lender has a substantial commercial advantage and opportunity to trade, sell or share that information with other commercial organisations, which may want to sell products or services to your clients in future.
Consider this summary: 'Our funding option may be a little more expensive than your funding option Mr(s) Customer, but we believe that your financial information should remain confidential, and if you’re no longer borrowing the money, why should you pay interest on it ? This is why we will never sell or trade your private details to anyone, and if you want to settle off the loan early, we will secure you a rebate of the remaining interest on the loan. Your bank will not do either of these things'.
Make this is your opportunity to ask your customers when the privacy and data integrity are important to them. This is a substantial feature that your customers may pay a little more for in their monthly payments. But you can guarantee them that no junk mail will come from your lender, that your lender will not share information with any other commercial third parties, and that their confidential information remains exactly that, confidential. Your option gives your customer Privacy, Security and Protection that a direct lender or Bank will not, and many customers believe that’s a benefit worth paying a little extra for.
