Blog
Getting to grips with Defaqto Star Ratings
Television, newspapers, websites and mail – Defaqto ratings are popping up everywhere. But what are they exactly and how can they benefit your dealership?
Defaqto is an independent and trusted researcher of financial products. They provide consumers with the information they need to make good purchasing decisions and through their extensive analysis of products available on the retail market, Defaqto has developed Star Ratings. These allow consumers to see, at a glance, where a product sits in terms of quality, comprehensiveness and benefits.
Why have Defaqto Star Ratings become more popular?
Confidence in the financial market has been rocked in recent years and consumers are becoming more savvy about what they are buying. They want to know exactly what they are getting for their money, whether it provides strong protection and how a product rates against others in the marketplace.
Defaqto ratings offer them a quick and easy solution. They look at between 40 and 100 features and benefits provided by a product, which are then categorised and given a rating based on their quality and extent of cover. These range:
- 1 star – a basic product with a low level of features and benefits
- 2 stars – a product typically offering a below average range of features and benefits
- 3 stars – a standard product providing an average level of features and benefits
- 4 stars – a product with a good level of features and benefits
- 5 stars – an excellent product with a comprehensive range of features and benefits.
Learn more about Defaqto’s Star Ratings system on their website.
Why are Star Ratings important for dealerships?
Tim Heavisides, Chief Executive Officer at Car Care Plan, said: “Using Defaqto Star Ratings we can quickly illustrate the quality of our products in an already crowded market place. It has become more and more important for dealers to ensure the quality of their products is easy to communicate and the benefits to their customers are clear.”
Changes to the rules surrounding the sale of GAP insurance mean dealerships must now provide customers with prescribed product information and allow the customer two clear days to consider their options. The Defaqto Star Rating can help ensure your dealership is able to communicate the benefits of the products you are selling.
To learn more about FCA changes to the rules surrounding GAP insurance, download our FREE eBook: Get ready for FCA Regulation changes in September 2015.
With the ratings system becoming increasingly recognisable, it adds a lot of weight to a sales pitch. A strong Star Rating will greatly increase consumer confidence, so it pays to ensure you are offering only the best on the market.
Car Care Plan offers a FREE Dealer Health Check service to review your financial products and provide ways to improve your service. Sign up today.