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The latest news from iVendi and the industry

News

The latest news from iVendi and the industry

Add-on products are “next big challenge” in online motor retail

Tue, 14/08/2018

Addvalue

Integrating add-on products such as warranties and service plans into the customer journey is the “next big challenge” in the development of online motor retail, says iVendi.

These products are often important sources of profit for dealers and can provide valuable protection for customers but are too easy to ignore if they are simply presented as a single page of options online.

James Tew, CEO, said: “Creating a complete online motor retail journey that provides all of the opportunities of its showroom counterpart is something we have been working on for many years. Most of the major issues have been resolved but there are a small number left and we see add-ons as the next big challenge.

“They are an important source of revenue for dealers and have typically been sold face to face. However, online, it is too easy to click ‘next’ because it is not a core part of the car purchase and they are usually introduced near the end of the process.

“Major dealer groups - who in many ways are leading the way when it comes to online processes - are especially concerned about possible reduced add-on sales. Upselling of warranties, for example, is difficult for them to achieve when a deal has already effectively been concluded online.”

James said that iVendi’s efforts so far had been concentrated on investigating where add-ons should be first shown to the customer and how best to explain their benefits.

“There is no obvious reason to introduce add-ons at the end of the customer journey and we have been experimenting with showing them at other points, as well as dealing with them separately to the main vehicle purchase process altogether.

“We have also created a series of videos that underline the advantages of the main add-on products that are designed to show their benefits to car buyers. This is an approach that has worked very well in online motor finance.”

James said that iVendi was also in dialogue with a number of providers of add-on products, pooling information about the best way to sell their products online.

“Everyone in this part of the motor industry recognises the importance of retailing these products successfully online and there is quite an open attitude to sharing information and experiences.

“Really, we are in a similar position to where online motor finance was maybe 5-6 years ago, where everyone involved in the sector is trying new and innovative approaches and discovering what works best.

“There is a general recognition that add-ons are such an important part of the car retail experience that we need to find a way to make them saleable in a manner that works as seamlessely as possible online for both dealers and customers. “

James said that iVendi was working on a range of best practice ideas and solutions that it believed would mark a considerable step forward.

“Substantial progress has already been made and we expect to be able to reveal more information about what we have discovered later this year.”

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