Curt Johnson, Senior Risk, Product & Compliance Manager

How do you define a “combo product”?

In our industry, when multiple programs are combined into one potentially easier-to-sell product it’s referred to as a “combo”. Typically, combos have a service agreement product base, with non-mechanically related vehicle services incorporated – like tire and wheel or paintless dent repair – to add value for the consumer and ensure F&I offers a fuller range of aftermarket products to each customer.

What types of products are you including in your combo packages today? Why?

With the launch of NAC ExpressLane in 2011, our easy-to-use online sales & eContracting system, our dealership F&I clients were given the ability to turn their screens and instantly display ALL of our cost-effective VSC products and options to their customers. We put some of the power back in to the consumer’s hands by allowing them to pick and choose according to their needs and budget; and, we eased the burden on F&I by providing a tool that sells a complete list of products – every time.

So, although we don’t currently offer a pre-packaged combo product, our dealers are quite successful at using NAC ExpressLane to sell multiple products at once. NAC is always looking for new and better ways to give our dealers the competitive edge. If the marketplace continues the demand for combo products, we’re ready and willing to respond with innovative combinations that will bring our clients profits and success.

What are your top reasons behind offering combo products? What, if any, reasons would you have to not offer them?

It’s all about being competitive and having what consumers are looking for in today’s market. For our dealer clients, NAC ExpressLane has evolved and accelerated the way they present and sell products. It’s menu selling on steroids - no more overwhelming placemats, double screens or studying coverage specs and mileage bands. Just type in a VIN and show the customer the screen; when it’s all placed right in front of them, customers ask questions, conversations start and regardless of the limited time F&I has with that customer, we’ve found that combinations of products get sold more often.

Is the sales process for a combo product different than for an individual product? Can you give an example?

The process of selling one product versus a package of products is the same for the most part, however it’s more of a time investment to sell the higher price tag of a combo package and prove its value to the consumer. Yes, combos lessen the burden on F&I to remember to offer every product, but I think, in some ways it can also block the sale because some customers feel they’re being charged more to purchase items within the combo they really don’t have a need for.

Do you believe the combo product strategy will evolve in the future? What types of product combos do you anticipate in the next 2-5 years?

The combo product strategy IS changing, and it will continue to evolve as more companies create eSolutions like NAC ExpressLane. The further the industry moves from paper contracts to online technology, the more likely it will become – as NAC’s dealers and their consumers do today – to simply display a complete array of plans, programs and services and help consumers create their own combos.

Is there anything else you would like to add?

As a company founded by dealers for dealers, we are focused on creating products and programs that meet the needs of an ever-changing market. NAC has been administering and marketing tailor-made programs for agents, dealers and financial institutions nationwide since 1984, and we are known for our family-based business approach, willingness to listen, longstanding partnerships and dedication to meeting client needs.