Automotive Compliance Showroom Manager process Training Module. Mandatory Dealership Policy. ALL RETAIL customers must be taken through the Automotive Compliance Showroom Manager process, irrespective if they are buying new or used vehicles, buying by cash, card or finance, or as a distance sale. Not only is this an FCA Mandatory Regulation, but performed correctly it can also maximise your opportunity to sell add-on products, and earn greater commission. (The only exceptions are Corporate and Motability customers as they are not covered by the regulation.) Please Note: This is an Advised sales process. Advised sales (where you give advice and ask for the business) These are where you give the customer 'advice'. Broadly, this means that you give a potential customer a personal recommendation, but the full definition is in our Handbook. Some of the characteristics of an advised sale are: You explain why the particular product or provider would meet your customer's demands and needs You give a recommendation tailored to the customer's needs Preliminary Stage: Hook. Sow the seed.reassure the customer FCA regulation Treating Customers Fairly is for their protection and confidence Here at Motors we are regulated by the FCA (Financial Conduct Authority ) which confirms you are dealing with a reputable company with a duty of care to your financial and insurance needs. (see note) This means that we adhere to the FCA s Treating Customers Fairly Policy that ensures you have the best and correct advice, when buying you new vehicle and we have to keep a record of this should the FCA wish to check. Later on I will need to give you some more information about this, but what is important right now is finding the right car Proceed to the point of sale i.e. deposit taking / order form signing Note. Your dealership is an Appointed Representative of Automotive Compliance Ltd. who is your Principle Firm and regulates your dealership on behalf of the FCA. Therefore your dealership must fully comply with FCA compliance regulations.
STAGE 1 Treating Customers Fairly Customer Committed to Purchase of Vehicle A Prospect becomes a customer when, you take a deposit or the Prospect signs and order form or Both Remember earlier on I told you earlier we are regulated by the FCA, well, now I need to run through a short presentation to ensure that we are treating you fairly and I give you the correct and best advice, based on your individual requirements and keep a record. Open Showroom Manager from desktop icon Automotive Compliance. Enter customer and vehicle details on Customer Profile page. Click Enter This opens the: Initial Disclosure Document Explain that: This is our Initial Disclosure Document which tells you about the FCA, who regulate us, our Products & Complaints Procedure for your peace of mind, that we are covered by the Financial Services Compensation scheme. Also we are duty bound to protect any data collected. I will now print this and you can take it away with you for your records. Select: Print & Continue at the bottom of the page Click Remember, do not give to the customer now, but leave it on the printer for now We do this to ensure that the customer does not start reading or his attention strays, whilst you are giving them important information Screen will refresh to your Demands & Needs questions. ( bespoke to your dealership ) Demands and Needs. Take the customer through all the questions on your bespoke question set. However in your rapport and qualification stage of your sales process you will have already gained the majority of answers to the Demands & Needs questions. Practice and memorise the Demands & Needs questions, to ensure you have the answers in advance and are simply confirming the customer s circumstances on the questionnaire from your qualification.
The one question that you may not know the customer s response to and to which you should pay particular attention is: Does your current insurance company give you the original purchase price of the vehicle in the event of a total loss claim during the first three years? - The customer s common response is: I m not sure. At this stage take control and irrespective of the reply, unless a definite no ask: OK, Mr/Mrs Customer, you need to refer to your insurance policy, but let me ask you this : If, in coming up to 3 years time, something happens to your car, and it is written off, do you think your insurance company will give you a cheque for the full purchase price, that you are paying today, or will they give you the current market value at the time? Customer response: Probably the market value Note : The question does not ask whether the customers insurance company replaces the car. Ie new for old.it asks whether they receive the purchase price for a full 3 years. Click No then Enter. Note. With distance sales including Ebay, the same process applies, but question should be asked by telephone and the Recommendations posted with the Order Form or can be printed to PDF or similar program on your PC and emailed. Apart from being a FCA requirement, why miss a sales opportunity?
Analysis Page. We have run through all the questions and the computer is now analysing your responses, and what we will do is have a look and see what recommendations have been made. Click Recommendations. Mr/Mrs Customer, these are our recommendations, and under our Treating Customers Fairly Policy that, based on your responses, although optional, I need to make you aware of the products we have available Run through Recommendations, entering prices as appropriate, if not pre-filled. (see note) If Warranty recommendations made; Enter values for both term and price. Following the initial introduction to the products recommended What I need to do now is collect your signature, to show that I have been through this presentation with you. Then I will explain the products we have available, In detail, giving you the relevant information and making you aware of any exclusions or restrictions that may apply. Note. To comply with FCA rules, the recommendations are bespoke to your dealership products and include Key Facts information for regulated products. Click. Collect customer signature on Signature Pad. Click OK
The system will print 2 copies of the recommendations with 1: Customer copy and 2: Dealer copy. The Dealers copy is edited highlights the customers copy ( several pages ) contains the Key Facts information for the regulated products recommended. Present products recommended, giving customer relevant information to take away with them, but: Trial Close the customer. If customers declines any of the products; That s not a problem. I will not take your final decision now, let me give you the relevant information to take away and read through. Then I can be assured you are making a truly informed decision, and I ll take your final answer when you take delivery of your new car Give customer Initial Disclosure Document, Recommendations and relevant sales material for products recommended. Leading to Handover ( Sales Opportunity ) You will be talking to the customer on the phone at least once: Ask the customer about any products not bought at time of order taken i.e. Remember we made some recommendations for products when I took your order. Well, what further thoughts had you on Paint Protection, as I still have time to get our vehicle in the Valet Bay and have it treated, so it s absolutely pristine when you came to collect and it will stay that way? Can go ahead and arrange that? Or I know you wanted a little time to consider the Gap policy, would I would like to do is activate that policy so your fully covered, when you drive away in your new car.
STAGE 2 Handover Final Stage Remember when you ordered your car we went through our Treating Customer Fairly presentation and some recommendations were made, what I need to do now is take your final decision Open Showroom Manager from desktop icon Automotive Compliance. Click Open Pending Select the Blue Button by you customer s name. System shows original Recommendations page. Take customer through Recommendations, starting with products accepted. Then move on to products not yet bought, and use this opportunity to resell, highlighting product benefits, and close the customer for final decision i.e. Warranty Recommendation. We recommended Extended Warranty, which term would you prefer, 12, 24 or 36 months? (where applicable) KEEP QUIET AND WAIT FOR CUSTOMER RESPONSE. Remember: Customer s are more relaxed when they come to collect their new car, and are more likely to purchase as by this stage, especially if you have built up a good rapport. Confirm the Registration number of the vehicle : Over type as required with applicable number Click on the green tick. Box will go green once confirmed Confirm the customer has received their pre contract information and explanation prior to signing finance docs ( as applicable to financing customers ) After customers final decision recorded on recommended products; using accept or decline radio buttons
Now what I need you to do is sign off your final decision, but I do need to make you aware that you are now confirming that I have explained fully the products recommended, and that you will be liable for losses or costs incurred in relation to any of the products you have declined. Collect customer signature on Signature Pad ( for the second and final time ) Click OK Completed and Print System prints 2 Copies Copy 1: Customer copy 2: Dealer copy, short version. This Final Copy will now contain the customer s signature twice.once at the point of Sale when the customer was recommended the products applicable to them.. and secondly at the point of hand over or close too, when their final decision was made. Clearly showing evidence that the customer has been treated fairly and given time to make an informed decision whether that be to purchase or decline. Automotive Compliance Ltd 2014