Dealer warranty and services sales integration to the online motor retail experience are five years behind online motor finance, according to iVendi chief executive officer James Tew.
The profitability of add-ons in relation to online motor finance is behind due to a market that is still racing to catch up,
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Tew said: “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, and 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. “
“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.
Tew added: “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.”
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By GlobalDataTew said that iVendi’s online car retail 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. iVendi was also in dialogue with a number of providers of add-on products, collecting information about the best way to sell their products online.
In July iVendi’s international expansion was strengthened through the appointment of an international projects manager.
Kieron Grenney-Tabret’s role will include creating a project management framework to deliver the company’s products and services on an international basis, as well as enhancing and streamlining the customer onboarding process.
iVendi is a motor retail software provider based in Manchester. The company was founded in 2009, and provides products such as ‘quoteware’ and a car finance checker.
