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Success Stories

PRO Consulting case studies

CASE STUDY #1

Increased the F&I revenue and service retention drastically and doubled the prospects of selling more cars.

A stand-alone import dealership needed a better strategy to increase F&I profit, retain customers and make a second sale. To accomplish this, the PRO consulting team conducted a thorough product assessment and fashioned a unique profit opportunity in the form of a customized pre-paid maintenance program.

THE CHALLENGE

  • The dealership struggled to identify opportunities to make a profit in the F&I department that impacted the dealership's overall profitability.
  • They needed a strategy to retain customers and make a second sale.

A typical approach of selling products for high price was not well received by the customers. Therefore, to grow profit, the dealership needed to focus on selling customized products that served the customers’ needs.

THE SOLUTION

We leveraged our industry experience to quickly identify that the dealership required a customer- centric approach and offer products that customers needed.

We customized a pre-paid maintenance program that would provide discounted maintenance coverage to the customers. We also added glass and key coverage as a benefits package for the customers to further enhance their overall ownership experience. The process involved a series of training sessions for the dealership staff to sell the products that would add value to both the customers and the sales personnel.

THE RESULT

90%

Increase in Service Retention

The sales department experienced a significant increase in the service retention of over 90%.

9%

Increase in Profits Per Vehicle

The customized maintenance program and the PRO team’s expertise helped the dealership create a profit center in the finance department and grow profits by 9% per vehicle retailed. It substantially contributed to the overall revenue of the dealership.

ADDITIONAL BENEFITS

The customized maintenance program strategy was highly successful as nine out of ten customers returned to the dealership multiple times to use the maintenance plan. Furthermore, it provided more opportunities to engage with the customers, generate more referrals, and considerably reduced the cost of acquiring new customers.

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CASE STUDY #2

A custom reinsurance model increased profit in new ways and dealership expanded to multiple locations.

A multi-franchise dealership had a very basic reinsurance position and could only reinsure one product–service contracts. It was limited and not very profitable because the insurance administrator controlled it. PRO team identified a flexible administrator to help the dealer customize products that would build a unique value proposition and increase profit. Our expertise helped create additional profit opportunities by offering more products for the consumers. As a result, the dealership was able to access a substantial amount of insurance reserves and expand the organization and purchase additional franchises.

THE CHALLENGE

  • The dealer wanted to find a way to expand the reinsurance portfolio and reinsure that into a company to realize the underwriting profits.
  • Additionally, the dealer wanted to have reasonable access to the funds for further investment and growth.

THE SOLUTION

We leveraged our industry experience and diligently evaluated various insurance administrators and product offerings to help the dealer find a suitable insurance administrator. The new administrator allowed reasonable customization of products and create a bundle of reinsurance products.

THE RESULT

PRO team’s expertise helped the dealer get a customized reinsurance program. As a result, the dealer could offer multiple products for sale to the consumer. That created a unique value proposition and additional profit opportunities at the point of purchase. Each of those products had insurance reserves available that the insurance company could cede into the reinsurance company. Furthermore, the dealership gained access to funds to procure more dealerships.

ADDITIONAL BENEFITS

Due to the accessibility to reinsurance reserve funds, the dealership attained infrastructure growth and expanded it to new locations in multiple states.

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CASE STUDY #3

A comprehensive training program increased customer satisfation and finance profibility by up to 20%.

A dealership hired a new employee with proven track record for their F&I department. With his own way of processing deals and selling products, the employee underperformed relative to store averages, which greatly impacted the dealership’s profitability and uncovered the need for an update on training and process. Accessing the right training for all professionals, including management and not just the finance manager, can make a difference between an average employee or an above-average team. The PRO Team’s expertise rapidly discovered the barriers causing the staff to underperform and provided comprehensive training through role-plays and reverse role-plays. It significantly raised the employee’s performance and grew finance profitability by about 20%. 

THE CHALLENGE

  • Recovering and refining the skillset so that the manager finds it useful and employs them to grow sales.
  • The manager knew the process but faced difficulty delivering in a way that harmonizes with the time pressure he faced.
  • Aligning the best strategy for each customer— applying a step selling approach when a menu or package selling approach could have been better.

THE SOLUTION

With our decades of experience, we quickly uncovered the employee’s level of knowledge, how well he could reproduce it while selling products, and the impediments causing him to underperform.

PRO Team created role-play scenarios to the most realistic extent possible and then reversed roles to ascertain strategic approaches and tactical differences. That led to the refinement of the employee’s skills and improved process delivery to be most receptive to customers.

THE RESULT

20%

Increase in Financial Profitability

The training helped the employee perform better and that raised finance profitability by 10% to 20%.

  • As a result of our expert evaluation process and training, the employee increased the customer satisfaction index (CSI) and helped the dealership stand tall in the competition.
  • The training also resulted in less friction in the F&I department which led to a better customer experience.

ADDITIONAL BENEFITS

Communication is the backbone of sales management. Through the F&I training program, the employee learned clear and effective communication methods. The employee could successfully create products’ need awareness and handles sales objection. Consequently, he could sell more F&I products and easily qualify the customer’s concerns, making the transactions easy for both parties.

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CASE STUDY #4

A consultative approach transformed the efficiency of a multi rooftop dealership’s F&I department and raised the profits in the long run by over 300%.

A multi rooftop franchise dealership in the Pacific Northwest aspired to attain above-average PVR profit. The PRO team analyzed its people, processes, and operations. We helped the dealer make an incremental growth in the profit by raising dealership’s efficiency. The importance of the F&I department escalated more as the economic market conditions drastically impacted profits. However, we determined that the F&I department had many advantages to grow revenue relative to other dealership departments. Leveraging our decades of industry experience, we began to transform the culture of the F&I department and thus its effectiveness. We assessed employees’ competence and personality to identify the best fit for the role and provided thorough training to cultivate a high-achieving environment. Additionally, we developed a strategic compensation plan that enhanced motivation and rewarded higher production of product sales. As a result, the PVR profit increased drastically in the long run by over 300%.

THE CHALLENGE

  • The retail sales volume declined significantly by about 50% due to the economic market conditions, reducing both sales and F&I revenue.
  • Prevailing F&I manager mindset at the F&I department displayed low confidence and resisted changes needed to increase F&I profits.
  • Market stresses and a negative mindset impacted employees’ performance.

THE SOLUTION

With our years of experience in the automotive industry, we systematically assessed employees’ personalities and potential to place them in the right roles. A mandatory comprehensive training drastically raised efficiency. A strategic compensation plan stimulated a competitive work culture and expanded employees’ commitment to the changes in the F&I department.

THE RESULT

0 %
Increase in Profits

Due to the transformation of the dealership’s F&I department efficiency, the dealership exceeded its goal of growing PRV profits.

2x

A high increase in employees’ motivation raised productivity level, and the profitability of the F&I department doubled in the next year.

ADDITIONAL BENEFITS

The transformation resulted in creating a positive work culture that benefited both the employees and the dealership in several ways, such as employee retention and increased productivity. Consequently, the F&I department contributed considerably to the dealership’s overall profits and continues to positively affect the auto group’s entire sales culture, especially in uncertain times.

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