AUSTIN, Texas – November 26, 2019 —
Bundling Products Increases PVR
Bundling products to create a competitive edge and generate more business is a strategy used across many industries. While there has been doubt on whether bundling products is beneficial in the F&I office, at RoadVantage we have seen great success when our Partners sell the bundles we offer. If you’re looking to increase your dealerships’ Per Vehicle Retail, offering bundled aftermarket products is something you should consider.
Since ancillary products can account for 25% of a finance department’s revenue, it’s important to offer these products in a way that will clearly demonstrate the benefits to your customer without losing their interest. Bundled products allow you to spend less time presenting ancillary products by streamlining your product menus and shortening your presentation. This makes it easier for the customer to understand and stay engaged. We have found that bundled products have a 35-50% penetration rate, likely because customers realize they are getting more coverage for their money.
If a vehicle is covered for multiple products and they’re bundled together, the customer only needs to reference a single contract to check coverage, as opposed to referencing multiple stand-alone product contracts. Bundles also help ensure that customers frequent your dealerships’ service departments, rather than using other repair facilities. Our research has shown that stand-alone products are not as effective in generating customer retention as bundled products.
To learn more about RoadVantage bundles and which ones would work best for your customers, contact our sales team at 855-680-2200.
Fueled by innovation, led by industry veterans, and powered by passion to create a better customer experience, RoadVantage is the fastest growing F&I provider in the industry. With a team that leverages technology and a streamlined approach, RoadVantage is setting new standards for performance, with exclusionary programs providing the most comprehensive coverages available anywhere in the industry today. RoadVantage’s industry leading service levels result in 98% of claims approved in seven minutes or less, and 99% of claims paid within 1 hour of receipt of the signed invoice. RoadVantage offers a full portfolio of ancillary products through certified agents and is headquartered in Austin, TX with regional offices in Boston, MA; Dallas, TX; Phoenix, AZ; and St. Augustine, FL. For more information, visit www.roadvantage.com.