January 27, 2017

Is Ford Motor Co’s new FCP Commitment Program Fair to Dealers?

In speaking with Ford dealer owner-operators, there seems to be two fairly common threads regarding their understanding of Ford’s new Commitment Program:

Some Ford dealers are not completely clear as to how FCP works.
Not all Ford dealers feel it’s fair.

Our Understanding of the Ford Commitment Program
Some dealers feel Ford is holding back monies they used to receive more freely. It used to be that certain thresholds were set, and when the dealer achieved them they received their incentives. Well, things have changed a bit, because now dealers are being measured against one another, creating a fierce competition to be at the top of their game in customer satisfaction, or simply miss-out on tens of thousands of dollars each month.

Ford has shifted around its incentives pay-out’s, making them more attractive to dealers with high CSI’s, and penalizing those with lower CSI’s. They’ve also added variables that have left some confused, and others completely stoked who know they already fit the new criteria.

First, Ford dealers are now required to have a minimum number of employees registered and certified in their respective areas. Second, there’s 1% carat dangling out front each month (1% of MSRP on new vehicles sold) that only some dealerships will receive. This “extra” 1% is directly associated with the dealer’s CSI/CVP rank in their region. To qualify, they must be in the top 20% in order to receive it. Meaning, not every dealer will receive this 1% override, since not every Ford dealership in a given region can be in the top 20% at the same time.

Was the new Ford Commitment Program created to save FordMoCo money, or was it really intended to force dealers to step-up their CSI, CVP, and employee certifications?

What can Ford dealerships do to increase their CSI & CVP to better their chances of attaining their 1% override? Here’s a few tips we gleaned from speaking with a dealer who’s already reaping the rewards of Ford’s FCP:

Get your top employees registered and certified with Ford.
Poll new vehicle buyers one day after purchase.
Poll service customers before and after they leave the service lane.
Attempt to resolve issues quickly, before the factory survey reaches your customer.
Don’t depend solely on employees to gather customer feedback – use automation whenever possible.
Do you have thoughts or opinions regarding Ford’s new Commitment Program? We’d like to hear from you.

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