How Upskilling Sales Staff Can Drive the Uptake of Added-Value Products in Your Dealership

Post Category: Staff Training
Post date: October 1, 2024

By Phil Miskelly, Head of Business Development at WSG

The UK automotive market is booming, ranking fourth in Europe and ninth in the world, with a staggering value of over £7.1 billion in 2023 (Source: Mintel 2023).

With 7,242,692 used cars sold in 2023 alone—a 5.1% increase from the previous year—the sector not only supports 345,600 jobs but also contributes an impressive £12.2 billion annually to the economy.

For dealerships, the automotive aftermarket presents a vital opportunity to enhance the customer experience and boost profitability. As more dealers begin to upsell added-value products, effective training for your sales staff becomes crucial.

With the right knowledge and skills, your team can seamlessly match products — like paint protection, cosmetic repair agreements, pre-paid maintenance packages, roadside assistance plans and extended warranties — with the unique needs of each customer to power your profits.

Below we share our top tips for upselling extended warranties, which have grown dealers’ chassis profits by as much as 25%. These tips are ‘tried and tested’ and currently used by hundreds of WSG dealers in their own sales strategies. 

Training for success

Equipping your sales team with the skills to upsell is essential for boosting your bottom line. Well-trained staff can confidently articulate the benefits, coverage, and limitations of these offerings, significantly increasing the likelihood of successful upsells.

This is especially important for products like extended warranties, where understanding repair costs can help customers appreciate the value being offered.

Encourage your staff to ask customers about any previous vehicle issues. Understanding whether they faced costs for repairs without warranty coverage can highlight the advantages of the extended warranties your dealership provides.

Comprehensive sales training enhances your team’s product knowledge and communication skills, both of which are vital for effectively upselling added-value products.

Our top tips for upselling extended warranties

(as used by hundreds of real WSG dealers) 

Enhanced product knowledge

  • Understanding your products: Ensure your team is well-versed in the different levels of cover you offer, including their benefits, coverage, and limitations. This allows them to confidently demonstrate the value of each warranty to your customers.
  • Tailored recommendations: Taking the time to understand your customer’s specific needs will allow your team to match them with the right products, increasing satisfaction and driving up your penetrations.

Improved customer communication

  • Building trust: Trained staff can effectively communicate the warranty benefits, fostering trust and building rapport with customers. A knowledgeable team is able to address concerns more competently and make customers feel secure in their purchasing decisions.
  • Handling objections: Equip your team with the skills to anticipate and respond to common objections (such as cost concerns or doubts about warranty necessity), with persuasive and informative replies.
  • Offer a choice of payment options: Only allowing the customer to pay in full can be a barrier to sales, especially when they’ve likely just spent their savings on the vehicle. By signing up to a monthly payment provider such as Bumper.co (which enables customers to spread the cost over interest-free monthly payments), you could dramatically increase your take-up. Just don’t forget to promote this as an option!

Boosting sales confidence

  • Believe in your products: A confident team can convey the benefits of warranties more effectively to customers – but this confidence needs to be driven from the top down to ensure that your staff buy into the programme and the team is fully aligned.
  • Use promotional materials: Use all of the point of sale materials at your disposal to highlight the benefits of your products and quality of your provider. Customers respond better to visual materials, so the more engaging your materials are, the more chance you’ll achieve the upsell. Three of the most popular items used by WSG dealers are posters, flyers and desk aids which show some of the recent largest claims paid by us. All of our materials can also be fully customised to your dealership, subject to volume.
  • Don’t forget your website: The customer journey often starts before buyers even set foot in your showroom. Promoting your products and highlighting the awards or reviews of your warranty provider across your website will inspire consumer confidence and convert more website visitors into leads. If you’re not showcasing the excellence of your products online, you’ll inevitably be missing out on buyers.
  • Set goals: Incorporating goal-setting techniques into training will motivate staff to focus on warranty sales as a critical performance metric.

Consistency in sales approach

  • Standardised sales processes: Regular training ensures all sales personnel follow a consistent approach to upselling warranties, improving overall sales performance and customer satisfaction.
  • Compliance and ethics: Training also reinforces the importance of adhering to legal and ethical standards, reducing the risk of misrepresentation.

Adapting to market trends

  • Keeping up with industry changes: Regular training keeps your team informed about the latest trends and evolving customer preferences, enabling them to adjust their sales strategies effectively.

Conclusion

By investing in the training and development of your sales staff, you can drive the uptake of added-value products, ultimately enhancing customer satisfaction and boosting your bottom line.

A knowledgeable, confident team will not only meet customer needs but also position your business as the trusted dealership for their buying journey.

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