Column Structure

Business Managers regularly ask, “How can I increase penetrations on ancillary products?”

When I survey their current process, usually the first thing discovered is shallow product columns.

Let’s consider we have the following suite of products: VSC, Maintenance, GAP, T&W, PDR, and Key Replacement. It is not uncommon to find the “status quo” leaves shallow third and fourth columns with as little as 1–2 products (usually VSC and/or GAP). If you find your guests are choosing one of these limiting levels of protection more often than not, it could be no more complicated an issue than your menu construction.

Instead, consider structuring your menu as follows:

The issue at stake is that when a product is dropped from one column to the next, its value is diminished and perhaps our credibility compromised (otherwise why, without justification, are we dropping it from one column to the next when we just asked for a purchase consideration). Therefore, when offering shallow columns, the problem becomes twofold; in addition to the above stated concern, we end up with under-protected consumers who choose shallow columns.

By utilizing the stated menu structure, we will justify the construction of each column and our associated recommendation as
follows:

Preferred = local resident who needs GAP.
Value = non–local resident who needs GAP.
Basic = local resident who won’t clearly benefit from GAP (<70% LTV).
Economy = non–local resident who won’t clearly benefit from GAP (<70% LTV).

*The presumption is that the message conveyed to the customer is, “the Maintenance product is the one item designed to be used here at our store” (i.e. a non-factory supported, in-house Maintenance plan) and, if applicable “you probably won’t be driving all the way back here for that”.

That’s it. Simple. We have now justified not only our recommendation as most applicable/desirable for their situation, but maintained credibility in the process. No more apologizing (figuratively) for your offerings.

Give it a try.

Good luck and good selling!

Erik Landrum
F&I Performance Coach at Conley Insurance Group

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