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Use Auto Loan Payment and Billing to Build Market Differentiation

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As business leaders head to Las Vegas in February to the American Financial Services Association’s annual Vehicle Finance Conference, let’s take a look at key trends they’ll face this year in efforts to build market differentiation.

On the downside, the number of new vehicle sales are expected to be flat to slightly lower this year. Affordability also is a concern, driven by higher gas and vehicle prices and the threat of auto tariffs on European imports. The average new vehicle transaction price in October 2019 was $36,744, up 3.9 percent from the year earlier, according to the NADA Dealership Financial Profile Series.

Yet loan performance remains strong, with serious delinquencies likely to fall slightly by year-end, according to the highly-watched TransUnion 2020 annual consumer credit forecast. TransUnion predicts that consumers are likely to deal with rising prices by seeking extended financing.

Strengthen market differentiation through CX

The monthly bills for those longer loan and lease terms present an ongoing opportunity to stand out in the marketplace through a better communications and payments experience that encourages on-time payments and repeat business.

A good start on improving the customer experience (CX) is to offer more digital options for how consumers receive financial communications and pay their bills. Very easy online reading and reviewing of billing statements and online bill pay scheduling each added a whopping 127 points in overall satisfaction on a 1,000 point scale, according to the J.D. Power 2019 U.S. Consumer Financing Satisfaction StudySM.

Choice remains important, though. Vehicle buyers want to be able to select from electronic, text, automated voice response, call center, digital wallet, and mailed options.

Use CCM and EBPP to improve CX

Omnichannel customer communications management (CCM) technology is indispensable to meeting those diverse consumer expectations. CCM systems give companies the control and power to create and customize the content and delivery for billing statements, payment confirmations, compliance communications and marketing materials.

Want to deliver even more value that builds satisfaction and loyalty? Auto lenders can leverage their CCM systems to make life easier for vehicle owners–while keeping the connection with the dealer and manufacturer–by adding inserts or messaging to their regular bills with timely service reminders, lease expiration due dates and tips on how to turn in a leased car.

For fast and easy payments, electronic bill presentment and payment (EBPP) systems securely enable digital account management and accept a range of payment methods such as ACH, credit/debit cards, PayPal, and AmazonPay. With a mobile optimized EBPP platform that also offers the ability to set up automatic withdrawals, payment plans and other conveniences, lenders can increase digital engagement and timely payments.

Connect with us at sales@nordistechnologies.com to see how Nordis Technologies can help make 2020 a great year for building market differentiation through better relationships with consumers.

About the Author

Bryan joined Nordis Technologies in 2016 to manage and grow the company’s already-large vacation ownership client base. He also is responsible for business development and market expansion in the healthcare and financial services markets. Before joining Nordis, Bryan spent more than 21 years with Interval International, a leading global provider of vacation ownership services. Bryan graduated from Northwestern University with a bachelor of science in political science. 

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Bryan Ten Broek
Vice President, Business Development

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