RSS FeedArticle Resource:-https://warrantech.wordpress.com/2016/06/20/purposeful-transparency-another-reason-to-partner-with-warrantech/
November 4, 2016 04:59
At Warrantech, we feel that the building block of a productive relationship is the frequent sharing of method facts with our partners, like underwriting final results as well as key overall performance signs (for example: customer support, service levels and also product reliability). We know this intentional openness - along with our unmatched flexibility, innovation and deep industry expertise - are definitely the features which separate us from the competition.
Being a subsidiary of AmTrust Financial Services, a multinational property as well as casualty holding company which is one of the most profitable and most financially stable firms on the market, we can easily provide each worldwide underwriting and administrative services. This vertical integration produces full transparency in addition to a level of understanding of program functionality that may be unequalled, which in turn brings about greater efficiencies and optimization to your business plan.
During quarterly business reviews with our partners, we offer important findings and may also determine troubles right down to the part stage. This supplies us the cabability to help alleviate any concerns along with your program and supply much deeper comprehension of its performance, including, however it is not restricted to:
• Market studies as well as patterns
• Best-in-class performance/benchmark analysis (together with ROI and also opportunity costs)
• Brand leaders in addition to sector enhancements
• Aggressive intelligence (industry along with market leaders)
• Recommendations
• Marketing and advertising improvements
• Regulation environment review
• Contact center KPIs/SLAs
• Know-how stories
In addition, we offer real-time access to our methods, delivering each partner the chance to track program functionality at any moment. Furthermore, making sure that this program is retained within a manner consistent with your own expectations, we can structure your system so your workers can be embedded at the Warrantech facility. This openness allows us to present you profit sharing programs in order that you will be able to gain actually further from the regular success of one's method.
Posted November 4, 2016 04:59
Reply
WarrantechWarrantech is selected as a finalist today in the Merit for the purpose of Innovation in Customer Care category within the ninth annually Stevie® Awards for Sales & Customer Care. This represents the third straight year that Warrantech continues to be recognized as a Stevie Award champion.
In accordance with the common scores of the 139 gurus across the world who participated in the preliminary judging, Warrantech's Connected Protection program had been cited for its ability to offer crucial advantages to hooked up vehicle owners along with much-needed additional profits sources for auto dealers. This specific newly created vehicle defense system supplies repair in addition to replacement rewards with regard to mobile devices found in a hooked up automotive, should these kinds of devices malfunction.
Much more than 1,900 nominations via agencies of all sizes as well as in nearly all sector were looked at in this year’s competition - a growth of 27% over 2014.
Entries were considered in 54 categories with regard to customer support and call center achievements, together with Contact Center of the Year, Honor for Innovation inside Customer Service, as well as Customer Service Department of this year; fifty categories for sales and business development achievements, which range from Senior Sales Executive of the year to Business Development Achievement of this year; as well as categories to recognize new products along with services in addition to solution providers. The Business Development categories are new for 2015.
A lot more than 100 members of various specialized judging committees will certainly determine the Gold, Silver and also Bronze Stevie Award placements from one of several finalists during final judging, which can take place January 26 - February 4.
"The Stevie Awards for Sales & Customer Support is still the fastest-growing of our global awards programs," said Michael Gallagher, president and founding father of the Stevie Awards. "The sheer number of nominations is certainly matched by the increasing quality of these nominations. We congratulate all of this year’s finalists and wish them well within the next stage of evaluating."
The final results are going to be announced during a gala celebration on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are anticipated to visit.
Article Resource:-http://warrantechusa.blogspot.in/2015/12/warrantech-named-as-finalist-in-2015.html
Posted November 4, 2016 04:59
Providing your customers some thing direct off the actual shelf could be fast along with hassle-free. However it could also mean that you’re running potential risk of offering a run-of-the-mill product that wasn’t necessarily designed for these people or for your company. The simplest way to differentiate yourself and also drive business growth would be to offer an element that no one else has - a thing that everyone will want.
In concert with your current team, Warrantech could certainly build a truly unique set of protection offerings for the clients that provide worth along with drive commitment. Our mission is always to offer our clients’ customers with all the flexibility to buy service contracts and acquire service on their own conditions and on their time frames, while reinforcing the particular long-term relationship between our customers along with their customers.
Warrantech delivers a full-stop solution for the various facets of a successful program and will also make use of a “menu-style” approach where you select what functions we may present - at the start of a plan and also throughout its lifetime. Moreover, Warrantech may tailor a program with rewards and also terms that meet the distinctive wants of one's customer base. Alternatively, or even in parallel, we are able to leverage our current programs to be sure speed-to-market for any plan.
Ultimately, and unlike many opponents in the service contract administration industry, we are able to offer protection alternatives beyond the actual common extended service plan solution, together with, however, not restricted to:
• Overlooked point-of-sale/renewal plans
• Loyalty/membership packages
• Concierge solutions
• Price/return guarantee plans
• Month-to-month payment/subscription plans
• Global coverage along with services
• Deductible and also no-deductible alternatives
• OEM programs
• Value pack options (multiple products under one service program)
• Identity protection along with fraud resolution
• Employee benefit offers
Warrantech offers unparalleled versatility, full administrative help along with a holistic approach to service contract programs. Therefore whether you’re a retail store, dealership, supplier, as well as producer within the consumer or perhaps automotive industry, you will find a custom made solution that can work especially for an individual.
Article Resource:-http://warrantech.tumblr.com/post/143836543317/one-size-does-not-fit-all-when-it-comes-to-your
Posted November 4, 2016 04:59
September 21, 2016 07:54
Comments
August 10, 2016 06:36
Warrantech Announces New Service Network Updates
Warrantech is proud to announce that we have made several updates to our service network, starting with a new field service network management team. Effective immediately, David Velasquez will provide enhanced partnering and direct support as the West Regional Manager, along with Brian Schlepp, Central Regional Manager, and Brian Weaver, East Regional Manager.
We are also excited about the implementation of software solutions from ServicePower, who will provide mobile workforce management tools to drive efficiency and streamline how Warrantech dispatches service centers and schedules appointments with customers.
“One of the many benefits of ServicePower is the transparency it provides our customer service staff with our field, enabling us to provide real-time updates on the status of repairs,” said Ricardo Pina, Warrantech Customer Service Manager. “I am confident that ServicePower will greatly reduce service turnaround times and minimize escalations and complaints.”
ServicePower, which goes live on August 10, will allow customers to pick calendar dates and times, and automatically dispatch service. The program will also report when a service order has not been completed within three days, at which point a servicer will get an alert and the customer will be given an update as well.
Additional support functions being implemented to provide enhanced customer/servicer follow-up include:
• Enrollment available for direct deposit (ACH) for payment of repairs and replacement.
• Completed claims will be processed for payment within 7 business days.
• Warrantech will cover trip/service calls for non-validated repairs (i.e., No Problem Found).
• Implementation of a Parts Order guarantee: Parts Orders through Warrantech’s parts portal are guaranteed for 90 days. In the event the part fails within 90 days, Warrantech will pay servicer for second service call.
• The current market environment dictates the ability to promote increased repair opportunities; we may, as required, opt to use a non-OEM part(s) to complete the service event.
• Improved call center staffing and training to promote a world-class experience.
• Upcoming implementation of the following ServicePower solutions: ServiceDispatch, ServiceStats and ServiceOutsourcing
Warrantech is always seeking ways to improve our business model so that customers and service providers are made a priority and given preferential treatment. We are confident that these new positive changes do just that and will continue to help build stronger partnerships and continued growth.
Article Resource:-https://warrantech.com/blog/august-2016/warrantech-announces-new-service-network-updates/
July 11, 2016 06:08
Turn A Negative Into A Positive With Warrantech
Product failures are inevitable. There’s no way to avoid them. But when they do happen, the way in which they are handled can have a far greater impact and help turn a bad experience into a positive, long-lasting impression.
Warrantech‘s overall philosophy regarding service contract programs is vastly different from the competition. Our belief is that service contracts are a means of building trust and loyalty with customers who have experienced a product failure, in addition to increasing profitability for our partners. We view every claim as an opportunity to turn a negative product mishap into an affirmative relationship-building event. An outstanding claim-handling experience is a micro-marketing opportunity that yields macro-marketing effects with customers and their circle of influence.
“When products break, customers can lose confidence in the product manufacturer and ultimately the retailer that sold it to them,” says Warrantech President and CEO Sean Stapleton. “However, if a rapid and convenient resolution is provided, a higher level of trust and loyalty is often developed with the customer.”
We understand the importance that a positive service experience can have for our partners and feel that our employees are extensions of our clients on every call and every transaction. That’s why we provide our employees with the knowledge, training, skills, resources and environment needed to provide an exceptional service experience with every customer they interact with.
This approach creates a customer who is not only satisfied with the outcome of the transaction, but a customer who walks away from the experience with a positive outlook on the service contract, Warrantech and, most importantly, our partners. Through continual contact center associate training and monitoring, Warrantech is able to maintain consistency in responses and a positive customer experience.
“We have a unique opportunity to affect customer loyalty,” says Stapleton. “Customers recognize and accept that product breakdowns can happen to even the most reliable products. The customer’s perception of the product issues are more often driven by our responses. I see service contracts and warranty programs as one of the most powerful loyalty solutions out there. It actually is a game changer.”
Article Resource:-https://warrantech.com/blog/july-2016/turn-a-negative-into-a-positive-with-warrantech/
June 20, 2016 07:52
Purposeful Transparency — Another Reason To Partner With Warrantech
At Warrantech, we believe that the cornerstone of a successful relationship is the constant sharing of program information with our partners, including underwriting results and key performance indicators (for example: customer satisfaction, service levels and product reliability). We feel that this purposeful transparency — coupled with our unmatched flexibility, innovation and deep industry expertise — are the attributes that separate us from the competition.
As a subsidiary of AmTrust Financial Services, a multinational property and casualty holding company that is one of the strongest and most financially stable companies in the industry, we are able to provide both global underwriting and administrative services. This vertical integration creates complete transparency and a level of insight into program performance that is unparalleled, which in turn leads to increased efficiencies and optimization for your business plan.
During quarterly business reviews with our partners, we present key findings and can pinpoint issues right down to the part level. This gives us the opportunity to help alleviate any concerns with your program and give you deeper insight into its performance, which includes, but is not limited to:
• Industry observations and patterns
• Best-in-class performance/benchmark analysis (including ROI and opportunity costs)
• Brand leaders and industry innovations
• Competitive intelligence (industry and market leaders)
• Best practices
• Marketing updates
• Regulatory environment review
• Contact center KPIs/SLAs
• Experience reports
We also provide real-time access to our systems, giving each partner the ability to track program performance at any given time. Additionally, to ensure that the program is maintained in a manner consistent with your standards, we can structure your program so that your employees can be embedded at the Warrantech facility. This transparency enables us to provide you with profit sharing programs so that you are able to benefit even further from the ongoing success of your program.
May 10, 2016 06:27
Warrantech Featured In The March Issue of Dealerscope Magazine
Guy Koenig, Chief Strategic Officer for Warrantech, recently took part in Dealerscope magazine’s roundtable discussion regarding companies that sell extended service plan programs to consumers through retailers. Here is what he had to say in response to the following question:
“What major initiatives/strategies has your company planned to help CE and appliance dealers make more money from warranty sales in 2016?”
Warrantech continues to develop unique products and solutions that meet the changing needs and demands of our retail partners and their customers. Most recently, significant focus has been placed on launching our Connected Life program to provide coverage and services for multiple devices under a single protection plan. This customizable program encapsulates everything from automotive, mobile devices, consumer electronics, and consumer appliances. The flexibility of our solutions gives CE and Appliance dealers an opportunity to expand their markets and reach new profit levels, while providing their customers with added value on their most important purchases.
Article Resource:–https://warrantech.com/blog/march-2016/warrantech-featured-in-the-march-issue-of-dealersc/
April 14, 2016 06:15
Why Should You Consider An Extended Service Plan?
1. Financial Strain
If you feel that having to purchase an entirely new item or making costly repairs would drain your bank account or leave you with a mountain of credit card debt, then you should definitely look into an extended service plan (ESP). It can actually enhance the value of your product as opposed to being a financial burden in the event that something does go wrong. With an extended service plan, you’re essentially transferring risk to the company that sold it to you and trading it in for peace of mind. Regardless of the product’s cost, having a smaller monthly ESP payment instead of an unexpected, large repair bill is a wise investment that can help keep you from breaking the bank.
2. Time Constraint
Another key consideration is time. An extended service plan can help: 1) Take the guesswork out of searching for a quality repair company to fix your damaged merchandise on short notice. 2) Find a replacement product and have it shipped to you in a timely manner if repair is not an option. 3) Provide you with on-site repair in many instances.
In short, a good extended service plan is designed to provide you with immediate assistance. If you are having trouble with a product, you’ll have instant access to an authorized service professional, via a toll-free number, who can diagnose the problem and help you get on with your day – right away.
3. Product Reliability
No matter how well designed a product is, nothing lasts forever. Failure is inevitable. That’s why it’s always a good idea to go online and research the potential shortcomings of the particular product you intend to purchase. Check into the long-term durability of that brand to determine its reliability and what type of coverage would be most beneficial to you.
Also, think about the implications of being without your favorite consumer appliance – whether it’s a refrigerator, television, dishwasher, washer/dryer or other durable good. If you feel that being without this specific item would be a burden to you, then an extended service plan serves as a good complement.
4. Accidents Happen
Consumer electronics have become more mobile over the years, which means that they are more susceptible to accidental damage from typical everyday use. Keep your habits and behaviors in mind as to how you use products like these. If you travel a lot or are constantly on the go, then your mobile devices could be at greater risk. And if you depend on a smartphone, computer tablet or laptop for important things like work or college assignments, just imagine how difficult it would be if you didn’t have coverage and had to spend a lengthy amount of time without them.
5. Long-Term Investment
It is human nature that we would treat a car that we intend to purchase and drive for a long period of time differently than we would a car with a short-term lease. If it belongs to us we’re more likely to keep it cleaner, buy higher-grade gasoline and go out of our way to avoid bad roads. The same can be said of any product. If you view something as a long-term investment more than simply a fleeting purchase, you’ll want to keep it operating at its very best for as long as possible.
An extended service plan is a must-have in situations like this and can be useful for items that depend on steadfast service. As always, be sure to read the coverage terms of your extended service plan to be certain that it meets your needs, and make sure that it includes a reliable repair plan to help keep your most important appliances working longer and to the best of their abilities.
For more information regarding extended service plans, visit warrantech.com or contact us today at 800.833.8801.
Filed Under: consumer, electronics, extended, finance, investments, plan, reliability, service, time
Article Resource:-https://warrantech.com/blog/april-2016/why-should-you-consider-an-extended-service-plan/
January 22, 2016 03:01
Blogger
Warrantech Named As A Finalist In The 2015 Stevie Awards For Sales & Customer Service
Warrantech was named as a finalist today in the Award for Innovation in Customer Service category in the 9th annual Stevie® Awards for Sales & Customer Service. This marks the third straight year that Warrantech has been recognized as a Stevie Award winner.
Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.
More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.
Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.
More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.
"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."
The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.
Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/
To know more click link:- http://extended-warranty-services-review.toptenreviews.com/warrantech-review.html
Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.
More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.
Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.
More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.
"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."
The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.
Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/
To know more click link:- http://extended-warranty-services-review.toptenreviews.com/warrantech-review.html
January 6, 2016 23:30
AmTrust Reports Strong Profit Growth For Third Quarter 2014
AmTrust Financial Services (AFSI), the parent company of Warrantech, announced strong earnings results for the third quarter of 2014.
For the third quarter 2014, operating earnings were $135.4 million, or $1.70 per diluted share, an increase of 107.8%, compared to $65.1 million, or $0.83 per diluted share, in the third quarter of 2013. Third quarter 2014 net income attributable to common stockholders grew to $156.6 million, or $1.97 per diluted share, an increase of 168.9% from $58.2 million, or $0.74 per diluted share, in the third quarter 2013. Third quarter 2014 annualized operating return on common equity increased to 34.2% from 21.1% in the third quarter 2013. Annualized return on common equity was 39.5% for the third quarter of 2014 and 18.9% for the third quarter of 2013.
During the first nine months of 2014, operating earnings were $339.9 million, or $4.28 per diluted share, an increase of 89.2% compared to $179.7 million, or $2.31 per diluted share, in the first nine months of 2013. During the first nine months of 2014, net income attributable to common stockholders grew to $362.7 million, or $4.57 per diluted share, an increase of 69.9% from $213.5 million, or $2.75 per diluted share, in the first nine months of 2013. Year to date 2014 annualized operating return on common equity increased to 30.1% from 19.8% year to date 2013. Year to date 2014 annualized return on common equity was 32.1% compared to 23.6% year to date 2013.
Third Quarter 2014 Financial Highlights
• Gross written premium of $1.52 billion, up 41.1%, and net earned premium of $914.4 million, up 49.0% from the third quarter 2013
• Operating diluted EPS of $1.70 compared to $0.83 in the third quarter 2013
• Annualized operating return on common equity of 34.2% and annualized return on common equity of 39.5%
• Service and fee income of $117.6 million, up 30.7% from the third quarter 2013
• Operating earnings of $135.4 million compared to $65.1 million from the third quarter 2013
• Net income attributable to common stockholders of $156.6 million compared to $58.2 million in the third quarter 2013
• Diluted EPS of $1.97 compared with $0.74 in the third quarter 2013
• Combined ratio of 91.3% compared to 0.74% in the third quarter 2013
• Service and fee income of $308.1 million, up 29.1% from YTD 2013
• AmTrust’s stockholders’ equity was $2.0 billion as of September 30, 2014
YTD 2014 Highlights
• Gross written premium of $4.63 billion, up 51.3%, and net earned premium of $2.62 billion, up 68.0% over YTD 2013
• Operating diluted EPS(1) of $4.28 compared to $2.31 in YTD 2013
• Annualized operating return on common equity(1) of 30.1% and annualized return on common equity of 32.1%
• Service and fee income of $308.1 million, up 29.1% from YTD 2013
• Operating earnings(1) of $339.9 million compared to $179.7 million from YTD 2013
• Net income attributable to common stockholders of $362.7 million compared to $213.5 million in YTD 2013
• Diluted EPS of $4.57 compared with $2.75 in YTD 2013
• Combined ratio of 90.7% compared to 90.8% in YTD 2013
• Book value per common share of $22.56, up from $17.74 at December 31, 2013
• AmTrust’s stockholders’ equity was $2.0 billion as of September 30, 2014
To know more about warrantech feel free to vist:- http://www.wtechauto.com/
December 29, 2015 02:51
Blogger
Extended Service Plans: What’s Behind All The Fine Print?
Using a single-source provider for underwriting and administration offers gains in profit and service.
The real question isn't what's behind the fine print, but rather who is behind the fine print of an extended service plan. In today's economic climate, retailers need to be diligent in determining who can financially back and service their products with plans that don't negatively impact bottom line results or customer relations. While some retailers prefer to act as their own administrator for service, the overhead costs and time required to facilitate work orders, customer service and repairs can often lead to eroding profits and dissatisfied customers. For retailers that opt to rely on an outside provider for administration or underwriting, it can expose your business and customers to financial risks and service levels that don't align with your business goals.
As a retailer, customers trust that you'll stand behind the products you sell with service plans they can rely on. Now, more than ever, retailers need to select partners that not only provide sound financial backing but also the service required to assist when customers need it most. By working with a single-source provider for underwriting and administration of extended service plans, retailers can focus on sales knowing that the money saved and service gained from a customized program can deliver profitable margins and elevated service that keep customers coming back.
Understand the Plan
Knowing the difference between a credible underwriter and administrator is an important distinction to make and one that definitely needs to be evaluated before committing to a company or a program. As a first step, make sure you understand the responsibilities and differences between an underwriter and administrator. An administrator is the company that handles the day-to-day administration of the product's extended service plan such as processing claims and accepting monthly payments for the service. Often, the administrator's name and contact information is featured in the customer literature about the plan. The underwriter is the company that is ultimately responsible for the financial backing of claims according to the terms and conditions of the plan.
Since not all administrators underwrite their own plans and vice versa, there are a number of extended service plan options available that allow retailers to customize a plan that's right for their products. However, the logistics of how a plan is carried out and who carries it out can reveal service inefficiencies, limited profitability and financial burden. In fact, according to some sources, a significant percent of administrators don't underwrite their own plans. The volatility of this approach can cause a number of problems for retailers including lack of funding or term changes that can become the retailer's responsibility in the event the provider declares bankruptcy. While this used to seem like an improbable situation, the recent filings of numerous multinational insurance companies make this harsh scenario a genuine reality.
Once you understand the roles of an administrator and underwriter, evaluating the provider's approach to maintaining financial responsibility and customer service will help determine the best program for your needs.
Financial Accountability
The most important point to consider when evaluating single-source plan providers or underwriters is the financial strength of the insurance company backing the program. If the company is financially unable to provide the benefits required, then you lose money, customers and credibility. Publicly traded insurance companies are an open book when it comes to examining financial status. Some areas to pay attention to include: historically good capital, recent acquisitions, ongoing organic growth and operating cash flows. Several organizations, including A.M. Best, Standard & Poor's and Moody's Investor Service, rate the financial strength of insurance companies. These ratings are among the most widely used indicators of an insurance carrier's financial health, or lack of it. Using these tools to assist in your evaluation is not only credible but universally accepted.
Customer Focus
The most important thing to your customers when they purchase a product with an extended service plan is how they will be cared for should something go wrong with the product. When a product fails, you need to rely on a responsive administrator to diagnose and troubleshoot the problem for customers in a timely and efficient manner. To help evaluate response rates, retailers should look at a provider's First Call Resolution rate, technical training for staff and network of service centers to ensure convenient and expeditious repair of products. In addition, service offerings such as fulfillment which includes carry-in, in-home and depot offerings or fulfillment by means of a new product, gift card or co-pay voucher delivered to the customer help maximize customer satisfaction.
Excellence in customer service is not an idle commitment so it's also important the provider shows how they successfully track, record and evaluate customer satisfaction to ensure they are meeting service level commitments. Another aspect to consider is how the administrator evaluates product reliability to continually develop competitive rates. Through comprehensive risk analysis, the provider can structure the extended warranty program in the most cost-effective way for the consumer yet profitable for the retailer.
While there are several factors a retailer needs to consider when choosing an extended service plan program, often the easiest and most profitable is working with a single-source provider for administering and underwriting the program. By selecting a full-service provider, you also have the benefit of flexibility in plans, categories, features and benefits to fit your needs and, more specifically, your customers' needs. While the fine print can be a bit overwhelming, selecting a single-source provider with proven credentials can help enhance revenues and build customer loyalty.
Article Resource:- https://warrantech.com/blog/december-2014/extended-service-plans-what%E2%80%99s-behind-all-the-fine/
To know more click link:- https://www.encompassparts.com/warrantech/
The real question isn't what's behind the fine print, but rather who is behind the fine print of an extended service plan. In today's economic climate, retailers need to be diligent in determining who can financially back and service their products with plans that don't negatively impact bottom line results or customer relations. While some retailers prefer to act as their own administrator for service, the overhead costs and time required to facilitate work orders, customer service and repairs can often lead to eroding profits and dissatisfied customers. For retailers that opt to rely on an outside provider for administration or underwriting, it can expose your business and customers to financial risks and service levels that don't align with your business goals.
As a retailer, customers trust that you'll stand behind the products you sell with service plans they can rely on. Now, more than ever, retailers need to select partners that not only provide sound financial backing but also the service required to assist when customers need it most. By working with a single-source provider for underwriting and administration of extended service plans, retailers can focus on sales knowing that the money saved and service gained from a customized program can deliver profitable margins and elevated service that keep customers coming back.
Understand the Plan
Knowing the difference between a credible underwriter and administrator is an important distinction to make and one that definitely needs to be evaluated before committing to a company or a program. As a first step, make sure you understand the responsibilities and differences between an underwriter and administrator. An administrator is the company that handles the day-to-day administration of the product's extended service plan such as processing claims and accepting monthly payments for the service. Often, the administrator's name and contact information is featured in the customer literature about the plan. The underwriter is the company that is ultimately responsible for the financial backing of claims according to the terms and conditions of the plan.
Since not all administrators underwrite their own plans and vice versa, there are a number of extended service plan options available that allow retailers to customize a plan that's right for their products. However, the logistics of how a plan is carried out and who carries it out can reveal service inefficiencies, limited profitability and financial burden. In fact, according to some sources, a significant percent of administrators don't underwrite their own plans. The volatility of this approach can cause a number of problems for retailers including lack of funding or term changes that can become the retailer's responsibility in the event the provider declares bankruptcy. While this used to seem like an improbable situation, the recent filings of numerous multinational insurance companies make this harsh scenario a genuine reality.
Once you understand the roles of an administrator and underwriter, evaluating the provider's approach to maintaining financial responsibility and customer service will help determine the best program for your needs.
Financial Accountability
The most important point to consider when evaluating single-source plan providers or underwriters is the financial strength of the insurance company backing the program. If the company is financially unable to provide the benefits required, then you lose money, customers and credibility. Publicly traded insurance companies are an open book when it comes to examining financial status. Some areas to pay attention to include: historically good capital, recent acquisitions, ongoing organic growth and operating cash flows. Several organizations, including A.M. Best, Standard & Poor's and Moody's Investor Service, rate the financial strength of insurance companies. These ratings are among the most widely used indicators of an insurance carrier's financial health, or lack of it. Using these tools to assist in your evaluation is not only credible but universally accepted.
Customer Focus
The most important thing to your customers when they purchase a product with an extended service plan is how they will be cared for should something go wrong with the product. When a product fails, you need to rely on a responsive administrator to diagnose and troubleshoot the problem for customers in a timely and efficient manner. To help evaluate response rates, retailers should look at a provider's First Call Resolution rate, technical training for staff and network of service centers to ensure convenient and expeditious repair of products. In addition, service offerings such as fulfillment which includes carry-in, in-home and depot offerings or fulfillment by means of a new product, gift card or co-pay voucher delivered to the customer help maximize customer satisfaction.
Excellence in customer service is not an idle commitment so it's also important the provider shows how they successfully track, record and evaluate customer satisfaction to ensure they are meeting service level commitments. Another aspect to consider is how the administrator evaluates product reliability to continually develop competitive rates. Through comprehensive risk analysis, the provider can structure the extended warranty program in the most cost-effective way for the consumer yet profitable for the retailer.
While there are several factors a retailer needs to consider when choosing an extended service plan program, often the easiest and most profitable is working with a single-source provider for administering and underwriting the program. By selecting a full-service provider, you also have the benefit of flexibility in plans, categories, features and benefits to fit your needs and, more specifically, your customers' needs. While the fine print can be a bit overwhelming, selecting a single-source provider with proven credentials can help enhance revenues and build customer loyalty.
Article Resource:- https://warrantech.com/blog/december-2014/extended-service-plans-what%E2%80%99s-behind-all-the-fine/
To know more click link:- https://www.encompassparts.com/warrantech/
December 21, 2015 02:40
How Well Do You Know Your Service Plan/Warranty Administrator?
Service contracts and extended warranties can be a great source of revenue for retailers, manufacturers and distributors. And their use as a customer satisfaction and retention tool can never be overstated. But what happens if your administrator ceases operations or is otherwise unable to service your business?
To be an approved administrator, certain licenses must be obtained along with proof of financial stability. Most administrators in the marketplace satisfy this last requirement by securing a contractual liability insurance policy (“CLP”) issued from an insurance company. This CLP requires the insurance company to “stand in” for the administrator in the event the obligations to the consumer have not been met. But what happens if the insurance company cancels the administrator, cannot provide administrative capabilities or ceases operations?
While the name of the administrator, and often the insurer, is listed in the service contract, when the customer seeks payment of a claim or a return of their funds, and the administrator and/or insurer no longer answer their phones, where does the customer turn?
Throughout the years, there have been numerous instances where either the administrator and/or the insurer of a service contract program have gone out of business or otherwise ceased operations. When this happens, your customers may not get their claims paid or their refunds processed and YOU will be their target of ire and will often be compelled to make good to the customer out of your own pocket. How do you prevent this?
At AMT Warranty and its subsidiary Warrantech, we believe it is critical that you know and understand the capabilities and financial wherewithal of your administrator and your insurer. Conducting due diligence and asking the right questions can make all the difference between a service plan program that provides you with revenue and customer satisfaction and one that is a customer service and financial nightmare.
To ensure your service contract providers will be there when your customers need them most, we believe you should be asking the following:
• How long have they been in business?
• What is the experience and background of their management team?
• What is the size of their business?
• What is the ownership structure of their business?
• What is their Better Business Bureau rating?
• Who is their insurer?
• How many insurers have they had over the past 10 years?
• Are they and the insurer under common ownership?
• What is the insurance structure of the CLP (e.g., is the insurance company standing in on the “first dollar” of risk or are they simply providing an excess of loss policy)?
• If your administrator is using an “excess of loss policy,” is your administrator reserving sufficient monies needed for the potential risk not covered under the insurer provided policy?
• How long has their insurance company been in business?
• What is their financial size and A.M. Best rating?
• Are the respective companies compliant with SOX, PCI, SSAE 16, etc.?
• Do they have audited or public financials?
• Have you visited their facilities?
• Are they outsourcing any critical functions?
• Are you doing reference checks?
A well designed and maintained service contract is only possible if all of the parties to the transaction are fully capable of performing their various roles and can weather periodic or irregular changes to their business model or performance, especially if your provider is not vertically integrated with the insurance company.
Article Resource:- https://warrantech.com/blog/december-2014/how-well-do-you-know-your-service-plan-warranty-ad/
To know more click link:- https://warrantech.wordpress.com/
December 17, 2015 04:04
Blogger
Branding of Product Protection Programs
A recent trend in the service contract industry is the emergence of administrators attempting to create a strong brand identity with consumers. Many administrators are working diligently to create brand recognition for their organizations by branding the protection offerings they sell through retail partners. The question is often asked, "Is this new approach in the best interest of the retailers?"
AMT Warranty and its subsidiary Warrantech's view is that the recent "brand building" business models employed by many administrators in the industry serve only to benefit the administrators and not their retail partners. This belief is derived from our core philosophy about the purpose of service contract programs. It's indisputable that service contract programs should provide important incremental revenue for retailers. However, our view is that a well-designed and maintained service contract program should drive customer loyalty and retention for the retailers selling the service contracts.
We view each service contract claim as an opportunity to enhance the trust between a customer and our retail partner who sold the underlying product and associated service contract. Product failures happen. When they do, customers feel a level of frustration. While it's true that the retailer is generally not the manufacturer of the product, customers often associate the product issue with the retailer who sold it to them. We believe that the solution to the product failure is best provided through a retailer-branded service contract in order to reestablish the trust that may have been diminished by the product failure. As a result of the service contract, retailers (through their administrator) are given the opportunity to engage in a highly personalized marketing campaign with a customer who at that moment may be their biggest detractor. We view this as micromarketing with macro effects.
In the emerging administrator-centric model, the solution is provided to the customer under the administrator's brand. The positive customer interaction and goodwill generated from resolving the customer's issue serves only to enhance the value of the provider's brand. That goodwill is retained by the provider, even after their relationship with the provider has ended. Even more problematic is that the administrator may also be marketing service contracts directly to consumers, including the customers of their retail partners. In essence, by agreeing to market service contracts under the administrator's brand, retailers could be promoting a competitor's offering to their customers. Moreover, the retailer has established a new relationship between their customers and a potential competitor. We feel that the resulting consequences for permitting administrator-branded service contract programs will have long-term financial implications for retailers as the strength of their administrator's brands increase in the eyes of the retailers' customers.
While the desire of administrators to build their own brand value is understandable, retailers should be wary of the consequences.
Article Resource:- https://warrantech.com/blog/january-2015/branding-of-product-protection-programs/
To know more click link:- https://warrantech.wordpress.com/
AMT Warranty and its subsidiary Warrantech's view is that the recent "brand building" business models employed by many administrators in the industry serve only to benefit the administrators and not their retail partners. This belief is derived from our core philosophy about the purpose of service contract programs. It's indisputable that service contract programs should provide important incremental revenue for retailers. However, our view is that a well-designed and maintained service contract program should drive customer loyalty and retention for the retailers selling the service contracts.
We view each service contract claim as an opportunity to enhance the trust between a customer and our retail partner who sold the underlying product and associated service contract. Product failures happen. When they do, customers feel a level of frustration. While it's true that the retailer is generally not the manufacturer of the product, customers often associate the product issue with the retailer who sold it to them. We believe that the solution to the product failure is best provided through a retailer-branded service contract in order to reestablish the trust that may have been diminished by the product failure. As a result of the service contract, retailers (through their administrator) are given the opportunity to engage in a highly personalized marketing campaign with a customer who at that moment may be their biggest detractor. We view this as micromarketing with macro effects.
In the emerging administrator-centric model, the solution is provided to the customer under the administrator's brand. The positive customer interaction and goodwill generated from resolving the customer's issue serves only to enhance the value of the provider's brand. That goodwill is retained by the provider, even after their relationship with the provider has ended. Even more problematic is that the administrator may also be marketing service contracts directly to consumers, including the customers of their retail partners. In essence, by agreeing to market service contracts under the administrator's brand, retailers could be promoting a competitor's offering to their customers. Moreover, the retailer has established a new relationship between their customers and a potential competitor. We feel that the resulting consequences for permitting administrator-branded service contract programs will have long-term financial implications for retailers as the strength of their administrator's brands increase in the eyes of the retailers' customers.
While the desire of administrators to build their own brand value is understandable, retailers should be wary of the consequences.
Article Resource:- https://warrantech.com/blog/january-2015/branding-of-product-protection-programs/
To know more click link:- https://warrantech.wordpress.com/
December 7, 2015 05:41
Blogger
Warrantech Named As A Finalist In The 2015 Stevie Awards For Sales & Customer Service
Warrantech was named as a finalist today in the Award for Innovation in Customer Service category in the 9th annual Stevie® Awards for Sales & Customer Service. This marks the third straight year that Warrantech has been recognized as a Stevie Award winner.
Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.
More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.
Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.
More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.
"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."
The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.
Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/
To know more click link :- https://www.encompassparts.com/warrantech/
Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.
More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.
Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.
More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.
"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."
The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.
Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/
To know more click link :- https://www.encompassparts.com/warrantech/
November 25, 2015 04:26
Blogger
Top 10 Ways To Improve ESP Attachment Rates On The Retail Floor
In the world of extended service plans (ESPs), extended warranties, or service and parts replacement programs, many consumers have become immune to the common tactics used to sell these programs. In fact, if your sales team is still selling the “what if” scenario to today’s ultra educated consumers, your store is losing out on valuable sales that help drive high-margin growth and revenue.
According to NBC News, extended warranties help fuel a booming $15 billion-a-year business; therefore, it’s imperative that retail sales personnel hone their sales approaches for “add on” sales such as ESPs. Through ongoing training and education, sales teams are better able to overcome “new” objections to these profitable plans and figure out which plan best suits the consumer’s need.
The below selling strategies are simple, but effective ways to help your sales team illustrate the value of ESPs and therefore convert more consumers:
According to NBC News, extended warranties help fuel a booming $15 billion-a-year business; therefore, it’s imperative that retail sales personnel hone their sales approaches for “add on” sales such as ESPs. Through ongoing training and education, sales teams are better able to overcome “new” objections to these profitable plans and figure out which plan best suits the consumer’s need.
The below selling strategies are simple, but effective ways to help your sales team illustrate the value of ESPs and therefore convert more consumers:
- Get consumers’ attention — By stating the obvious such as, “This product is covered under the manufacturer’s warranty for only one year,” you may pique the consumer’s interest enough to have him/her asking more about warranty coverage.
- Listen to consumers’ answers — It seems simple, but often sales representatives get so busy pushing sales out the door, they don’t hear what consumers really want to know more about. If a representative addresses some of the comments consumers share during the sales process, then consumers may be more inclined to listen to sales talk about protection plans. Remember, always address consumers’ objections and point out how ESPs overcome the objection.
- Give options — Often consumers may be more inclined to purchase extended coverage if they know they have options. This puts them in the driver’s seat to select the coverage that best suits their needs. For example, offer extended or standard warranty coverage and let them ask questions about the difference, which will lead to the sale of a plan that they believe in.
- Stay positive — Much like in life, if you focus on the positives, you’ll more likely receive favorable feedback. Focusing on the strong features and benefits of the ESP, consumers may find the up front fee is well worth the investment.
- Expert source — Provide consumers with sales representatives’ credentials or the training they receive prior to selling on the floor. (This is most effective if the store posts signs on the floor about the quality of its staff.) In doing so, when a sales member states, “In my experience, ESPs are essential,” the consumer has a frame of reference for why this is a quantifiable statement. Testimonials are another great way to communicate value and benefits (leverage your personal experiences, your customer, your store’s customer, etc.).
- Brands that matter — We’ve all fallen victim to the brand game at one point in our lives and consumers are no different. Consumers generally buy the brands they think represent quality or status and frown upon unknown brands. But while some brands make a great washing machine, they may not make a great TV and it shows in the manufacturer warranty details (especially parts and labor). Your staff needs to know the details of the manufacturer warranties just as well as the ESP to help drive home the value extended coverage offers.
- Explain the fine print — Helping consumers better understand what’s covered, what’s not and why makes your sales staff their ally. This type of dialogue not only builds trust, but also gives sales staff an opportunity to reveal some of the holes in the manufacturer’s warranty.
- Think about it — Once consumers have all the facts about the warranties or ESPs, it’s okay to let them think about their options. Have them walk around the store, talk to their spouse/significant other or speak with customer service representatives about the items they see coming back or how much it costs to repair various products. Often, a different source can be a welcomed change of pace for consumers who don’t want to fall victim to “sales hype.”
- Recommend it — If you believe in it, your customers will too. Familiarize yourself with the features and benefits and remind customers how costly repairs or replacements can be if they’re not backed by an ESP.
- Ask “why not” an ESP — Sometimes the most obvious questions go unasked such as “Why wouldn’t you want to protect your purchase?” or, “What’s holding you back?” Once your sales staff knows the answer to why, they may be able to employ any number of sales tactics to sell or attach an ESP
ESPs add significantly to a retail organization’s bottom line because they don’t require inventory space or carrying costs and they offer high margins. Many consumers are receptive to buying ESPs, but they do need to be convinced to add a plan to their basket and are looking to your sales staff to communicate the features and benefits of the plans, as well as your organization’s commitment behind the plans. Sharpening your sales strategies — on and off the sales floor — is a critical step to increasing ESP sales and enhancing the value these plans bring to consumers.
Article Resource:- https://warrantech.com/blog/november-2015/top-10-ways-to-improve-esp-attachment-rates-on-the/
To know more click link:- https://www.encompassparts.com/warrantech/
November 18, 2015 06:09
Blogger
WCM Conference Keynotes
Sean Stapleton, president and CEO of Warrantech/AMT Warranty will be presenting at the 2015 Warranty Chain Management Conference on March 11 in Miami. The following is an excerpt fromWarranty Week in anticipation of the event.
The technology is changing. The need for repairs is changing. Even the concept of ownership is changing. And the way people shop is changing. Two industry experts describe how they see these changes impacting warranty and service contracts.
At this year's Warranty Chain Management Conference, attendees are immediately going to be challenged to face the changes that new technology is forcing upon our industry.
It's going to be a bit upsetting, especially to those who like the status quo. Rather than hearing about the latest best practices in the break/fix business, and how everything is slowly going to get incrementally better, attendees are going to be told how driverless vehicles will challenge the whole idea of automobile ownership, and how comparison shopping apps that seek out the lowest prices have made it tough to earn a living in retail.
A pair of warranty industry experts will deliver a one-two punch of keynote presentations at the WCM Conference on March 11 in Miami, about the impact of disruptive technologies upon warranty. We spoke with both of them this week about their presentations.
John Estrada opens the morning session with a talk about how driverless transportation will change warranty and service contracts, followed by AMT Warranty's Sean Stapleton talking about how warranty and service contracts can help save retail from its downward spiral, by making value and customer relationships as important as low prices.
WCM's Morning Schedule
In the WCM program, Stapleton's 45-minute presentation is called "Combating the Retail Pandemic," a title he said he came up with a few months ago when the Ebola scare reached the United States. They're by no means the same thing, but in economic terms, the current state of the retail environment provokes a comparable level of fear for many veteran merchants whose iconic organizations are facing possible extinction.
"I certainly wanted to grab everyone's attention, but more importantly I felt that the title set the stage for a discussion about a very serious and widespread situation for retailers and manufacturers," he said. "A pandemic is a disease that has a disastrous impact felt both locally and globally." And he said that many colleagues and friends in the retail industry are dealing with a profound change in both customers and the marketplace where a low price seems to be the main determining factor for product purchases. So either they lose the sale, or they get the sale but lose money anyway.
In other words, the sales slump that's hurting many of them comes not just in terms of revenue but also in terms of profitability. "Margin erosion has impacted retailers in ways never seen before," he said. Price will always be a factor when a product is purchased, he added. This is nothing new – the modern difference is the ease by which customers can obtain pricing comparisons and make purchases through multiple sources.
The Great Recession
Stapleton said some people blame the current retail challenges on the lingering effects of the Great Recession – the decline of household income, aging baby boomers, rising unemployment, or falling home values. Others say it's the lack of innovation, or the lack of exciting new "must-have" products.
"The reality is that there has been product innovation: smartphones, 4K and Ultra HD, wearables, advanced car tech, and highly functional tablets. You look at the growth the CEA expects for these segments, and it's tremendous. So the innovative products do exist."
Meanwhile, the economy may not be as strong as we would all like, but it's not as bad as some people make it out to be, he said. The U.S. Census Bureau pegs the January-to-January sales gain at 3.3%, which isn't great but also isn't dismal. Total retail sales for the November-to-January holiday period were up 3.8% from the same period a year ago. The U.S. unemployment rate is now down to 5.7% and the median price of existing home sales is up 6.2% since last year. So what is it?
Ironically, he said, in an era where retailers are perhaps more connected with their customers than ever before, thanks to social media and big data, those connections are more superficial than ever.
"The heart of what I'm going to discuss is that many retailers and manufacturers are just not achieving a high level of loyalty and commitment from their customers," he said. "Part of the problem is that we're living in the 'Age of Like.' We see this play out on Facebook every day, with users happily clicking the thumbs up icon for just about anything they see. However, that's where the customer commitment often ends. 'Like' should not be our collective goal. To be successful we need to aspire to win the love of our customers. The reality is that overall we aren't seeing the same level of affinity for brands that we used to enjoy."
For instance, Stapleton said, his father always bought Kenmore appliances. "He loved his Kenmore appliances because, in his mind, they earned his trust and loyalty year after year" he said. "He wouldn't dare shop for another brand. Sadly, we don't have that kind of an environment anymore."
"As warranty and service contract professionals, we have a unique opportunity to affect customer loyalty," he said. "We have the ability to turn a negative experience into a powerful trust building moment with customers. Customers recognize and accept that product breakdowns can happen to even the most reliable products. The customer's perception of the product issues are more often driven by our responses."
Stapleton further noted that one of the greatest challenges with service contract programs arises when a customer's claim isn't covered under the contract, whether as a result of an expired contract or other reasons. "In such situations, there is still an opportunity to turn a negative into a positive."
He suggested that there are plenty of instances when no coverage exists, but accommodation can still be made to assist the customer and provide them value. Accommodations may take the shape of providing a product replacement or repair outside the service contract. However, there are other solutions that are less frequently utilized that can have a major positive effect with minimal financial impact.
For instance, Stapleton noted that broken products not covered under a plan can be purchased back from customers based on the products core value. Additionally, discounts on replacement products can be provided or even gift cards with token values which can be applied to future purchases can be offered to customers. The actual cash value is less important than the act of going the extra mile for a customer.
Discount Repair Services
Stapleton proposed another low-cost marketing idea: leveraging a claims administrator's repair network by making it available to customers who have a non-covered product issue. Why not offer loyal customers discounts on repairs for their customer-pay jobs related to these types of product issues, or even for other products they own?
"Here's how I see it: Warranty and service contract programs are developed by operations groups. However, the marketing departments of the retailers or manufacturers are rarely involved in the development of these programs. And I think that creates a level of disconnect. I see service contracts and warranty programs as one of the most powerful loyalty solutions out there. It actually is a game changer," he said.
Manufacturers and retailers might not know the name and address of every single customer, but they certainly have that data for those who needed warranty work or who made claims under their service contracts. With this information, a critical segment of their customer base can be identified and hopefully saved.
Stapleton suggests that marketing departments utilize claims data to establish a loyalty campaign tailored toward these affected customers. "The fact is that some of these customers may have been your best customers in the past. The data currently residing in a company's system can provide them the ability to know how and when a customer's perception of them soured. Moreover, that data combined with a strong retention plan can help return the customer to their former loyalist status. Further, this type of strategy can prevent the impacted customers from becoming one of your net detractors." He noted that with the power of social media, disenfranchised have the ability to shape an enormous population of existing and potential customers' views of your product or company.
Ultimately, he said, when structured and executed appropriately, warranty programs build trust and loyalty. Stapleton said it is inexcusable to allow one claim to impact a lifetime relationship with an existing customer. "Instead of spending the majority of available marketing resources to bring in new customers, let's keep the ones you have. Let's prevent them from getting out into social media and destroying your reputation based on one poor claim event."
The first step, Stapleton suggests, is to change the whole image of warranty within the retail industry. "If you want to change the perception of warranties and service contracts for customers, you have to change it internally first. We can't allow warranties and service contracts claims to be viewed as an unfortunate expense. We need to view them as a marketing opportunity that can potentially save a customer thereby leading to countless future purchases and maybe even a means to evoke positive customer emotions that go beyond 'like.'"
It's going to be a bit upsetting, especially to those who like the status quo. Rather than hearing about the latest best practices in the break/fix business, and how everything is slowly going to get incrementally better, attendees are going to be told how driverless vehicles will challenge the whole idea of automobile ownership, and how comparison shopping apps that seek out the lowest prices have made it tough to earn a living in retail.
A pair of warranty industry experts will deliver a one-two punch of keynote presentations at the WCM Conference on March 11 in Miami, about the impact of disruptive technologies upon warranty. We spoke with both of them this week about their presentations.
John Estrada opens the morning session with a talk about how driverless transportation will change warranty and service contracts, followed by AMT Warranty's Sean Stapleton talking about how warranty and service contracts can help save retail from its downward spiral, by making value and customer relationships as important as low prices.
WCM's Morning Schedule
In the WCM program, Stapleton's 45-minute presentation is called "Combating the Retail Pandemic," a title he said he came up with a few months ago when the Ebola scare reached the United States. They're by no means the same thing, but in economic terms, the current state of the retail environment provokes a comparable level of fear for many veteran merchants whose iconic organizations are facing possible extinction.
"I certainly wanted to grab everyone's attention, but more importantly I felt that the title set the stage for a discussion about a very serious and widespread situation for retailers and manufacturers," he said. "A pandemic is a disease that has a disastrous impact felt both locally and globally." And he said that many colleagues and friends in the retail industry are dealing with a profound change in both customers and the marketplace where a low price seems to be the main determining factor for product purchases. So either they lose the sale, or they get the sale but lose money anyway.
In other words, the sales slump that's hurting many of them comes not just in terms of revenue but also in terms of profitability. "Margin erosion has impacted retailers in ways never seen before," he said. Price will always be a factor when a product is purchased, he added. This is nothing new – the modern difference is the ease by which customers can obtain pricing comparisons and make purchases through multiple sources.
The Great Recession
Stapleton said some people blame the current retail challenges on the lingering effects of the Great Recession – the decline of household income, aging baby boomers, rising unemployment, or falling home values. Others say it's the lack of innovation, or the lack of exciting new "must-have" products.
"The reality is that there has been product innovation: smartphones, 4K and Ultra HD, wearables, advanced car tech, and highly functional tablets. You look at the growth the CEA expects for these segments, and it's tremendous. So the innovative products do exist."
Meanwhile, the economy may not be as strong as we would all like, but it's not as bad as some people make it out to be, he said. The U.S. Census Bureau pegs the January-to-January sales gain at 3.3%, which isn't great but also isn't dismal. Total retail sales for the November-to-January holiday period were up 3.8% from the same period a year ago. The U.S. unemployment rate is now down to 5.7% and the median price of existing home sales is up 6.2% since last year. So what is it?
Ironically, he said, in an era where retailers are perhaps more connected with their customers than ever before, thanks to social media and big data, those connections are more superficial than ever.
"The heart of what I'm going to discuss is that many retailers and manufacturers are just not achieving a high level of loyalty and commitment from their customers," he said. "Part of the problem is that we're living in the 'Age of Like.' We see this play out on Facebook every day, with users happily clicking the thumbs up icon for just about anything they see. However, that's where the customer commitment often ends. 'Like' should not be our collective goal. To be successful we need to aspire to win the love of our customers. The reality is that overall we aren't seeing the same level of affinity for brands that we used to enjoy."
For instance, Stapleton said, his father always bought Kenmore appliances. "He loved his Kenmore appliances because, in his mind, they earned his trust and loyalty year after year" he said. "He wouldn't dare shop for another brand. Sadly, we don't have that kind of an environment anymore."
"As warranty and service contract professionals, we have a unique opportunity to affect customer loyalty," he said. "We have the ability to turn a negative experience into a powerful trust building moment with customers. Customers recognize and accept that product breakdowns can happen to even the most reliable products. The customer's perception of the product issues are more often driven by our responses."
Stapleton further noted that one of the greatest challenges with service contract programs arises when a customer's claim isn't covered under the contract, whether as a result of an expired contract or other reasons. "In such situations, there is still an opportunity to turn a negative into a positive."
He suggested that there are plenty of instances when no coverage exists, but accommodation can still be made to assist the customer and provide them value. Accommodations may take the shape of providing a product replacement or repair outside the service contract. However, there are other solutions that are less frequently utilized that can have a major positive effect with minimal financial impact.
For instance, Stapleton noted that broken products not covered under a plan can be purchased back from customers based on the products core value. Additionally, discounts on replacement products can be provided or even gift cards with token values which can be applied to future purchases can be offered to customers. The actual cash value is less important than the act of going the extra mile for a customer.
Discount Repair Services
Stapleton proposed another low-cost marketing idea: leveraging a claims administrator's repair network by making it available to customers who have a non-covered product issue. Why not offer loyal customers discounts on repairs for their customer-pay jobs related to these types of product issues, or even for other products they own?
"Here's how I see it: Warranty and service contract programs are developed by operations groups. However, the marketing departments of the retailers or manufacturers are rarely involved in the development of these programs. And I think that creates a level of disconnect. I see service contracts and warranty programs as one of the most powerful loyalty solutions out there. It actually is a game changer," he said.
Manufacturers and retailers might not know the name and address of every single customer, but they certainly have that data for those who needed warranty work or who made claims under their service contracts. With this information, a critical segment of their customer base can be identified and hopefully saved.
Stapleton suggests that marketing departments utilize claims data to establish a loyalty campaign tailored toward these affected customers. "The fact is that some of these customers may have been your best customers in the past. The data currently residing in a company's system can provide them the ability to know how and when a customer's perception of them soured. Moreover, that data combined with a strong retention plan can help return the customer to their former loyalist status. Further, this type of strategy can prevent the impacted customers from becoming one of your net detractors." He noted that with the power of social media, disenfranchised have the ability to shape an enormous population of existing and potential customers' views of your product or company.
Ultimately, he said, when structured and executed appropriately, warranty programs build trust and loyalty. Stapleton said it is inexcusable to allow one claim to impact a lifetime relationship with an existing customer. "Instead of spending the majority of available marketing resources to bring in new customers, let's keep the ones you have. Let's prevent them from getting out into social media and destroying your reputation based on one poor claim event."
The first step, Stapleton suggests, is to change the whole image of warranty within the retail industry. "If you want to change the perception of warranties and service contracts for customers, you have to change it internally first. We can't allow warranties and service contracts claims to be viewed as an unfortunate expense. We need to view them as a marketing opportunity that can potentially save a customer thereby leading to countless future purchases and maybe even a means to evoke positive customer emotions that go beyond 'like.'"
Article Resource:- https://warrantech.com/blog/march-2015/wcm-conference-keynotes/
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November 14, 2015 04:34
Warrantech Featured In Dealerscope Magazine
Sean Stapleton, president & CEO of Warrantech, recently spoke with Dealerscope magazine regarding current company initiatives. Here’s an excerpt of what he had to say in “Making the Warranty Connection,” which explores how “extended service plans are resonating more than ever with cash-careful consumers” and how Warrantech intends to give them and retailers the best deal for their money.
Warrantech plans to expand its successful monthly protection program offered through our retail partners. The existing program, which provides monthly billing solutions for mobile device protection, is being expanded to offer comprehensive protection options for an extensive array of equipment owned by customers, regardless of where it was purchased.
By enrolling in the program, customers will enjoy additional benefits for products purchased through the retail partner, including disappearing deductibles and in-store service. The goal is to drive both recurring protection plan sales and traffic to the participating retail partner’s stores. The enhanced offering, known as our Loyalty by Warranty
program, will provide retailers with an innovative way to increase both revenue and customer loyalty.
Article Resource:- https://warrantech.com/blog/march-2015/warrantech-featured-in-dealerscope-magazine/
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November 3, 2015 01:50
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Warrantech Sets Itself Apart From The Competition
ean Stapleton, Warrantech president and CEO, recently took part in an executive forum with TWICE magazine. Here’s what he had to say in response to the following question:
In such a competitive category, how do you stand out and differentiate yourself from amongst the competition?
Warrantech Corporation delivers customized programs tailored for the unique needs of our partners. We do not agree with the “one size fits all” approach which is becoming pervasive in the industry.
Unlike other providers, we offer partners the flexibility of extending their brand to their service contract programs. We believe that this approach reinforces our partner’s brand and helps drive customer loyalty and retention.
Additionally, we offer extensive missed point-of-sale programs designed to enhance the relationship between our partners and their customers and drive substantial incremental revenue.
Warrantech is also a subsidiary of AmTrust Financial Services, Inc. (NASDAQ: AFSI) — one of the strongest and most financially stable companies in the industry. Recently named “2014 Best-Managed Company (Insurance)” by Forbes, their financial strength allows us to offer a unique, bundled underwriting and administration approach that most competitors simply cannot provide.
Look for the full article, as well as an overview of Warrantech, in the Extended Service Contracts supplement to the April edition of TWICE.
And be sure to follow Warrantech on Facebook, Twitter and LinkedIn so you can keep up to date on company initiatives as they happen.
Article Resource:- https://warrantech.com/blog/april-2015/warrantech-sets-itself-apart-from-the-competition/
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October 28, 2015 00:39
Enhancing Customer Service and Profit Margins One ESP at a Time
In today’s highly competitive retail marketplace, providing valuable add-on services is essential to increasing profitability and enhancing customer satisfaction. But, determining the value of an extended service plan (ESP) is often in the eye of the beholder. For some consumers, it’s seen as a security blanket, knowing their investment is protected long after the manufacturer’s warranty runs out. Others, however, see warranty plans as another line item on their receipt that they can’t justify during challenging economic times. As retailers look to bolster profit margins in times of flat sales, it’s important to drive home the benefits ESPs offer consumers above and beyond the warranty terms and conditions.
One Size Doesn’t Fit All
In light of slumping retail sales, extended warranty programs have become an essential and profitable value-add for retailers. Extended warranty plans such as product replacement programs, extended service plans, on-site service and comprehensive service programs offer distinctly different options to help customize a plan that best suits the consumer. By knowing the specifics, your staff will be better equipped to capitalize on the value these plans offer.
Satisfaction Guaranteed?
The only way to have valuable dialogue with the consumer is to have a well-represented team selling products and the services associated with them. Generally, there are four factors that go through the consumer’s mind when considering an ESP:
1. Value of item being purchased
2. Price of extended warranty
3. Length of manufacturer’s warranty
4. Length of extended warranty and date coverage begins
Through various sales tactics and techniques, your sales team can re-engage the consumer beyond the normal talking points by highlighting the services your warranty provider offers that often get overlooked:
1. Save time and money — If a product fails during the extended term, the consumer will not have to deal with repair hassles or bills because either a replacement (delivered same day or next day) or repair of the product will be handled by the provider. Locating an approved service center by the consumer’s ZIP Code is also a valuable time savings.
2. Ongoing support — For ongoing product support or questions about a plan, consumers can call a dedicated toll-free ESP hotline for inquiries or other details during the term of their extended warranty.
3. Trusted partner — The extended warranty plan is attached to the consumer, not the store. Since the rate of foreclosures and bankruptcies are up in today’s economy, it never hurts to point out the ownership aspect of the ESP.
The Bottom Line
The world of consumer electronics is cut throat — profit margins are slim, and prices have to remain competitive or stores lose business. For retailers, finding new ways to increase profits are not easy to come by. But, ESPs cost virtually nothing to market, take up little to no inventory space and are easy to promote. Retail personnel, especially, are in a unique position to sell extended plans to consumers because the transaction takes place live, in-person and at the point of purchase. Timing is definitely part of the sales equation, but selling value to an informed consumer provides better customer service and sought-after profit margins.
Article Resource:- https://warrantech.com/blog/may-2015/enhancing-customer-service-and-profit-margins-one/
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This is one of the most frequently asked questions we receive and one that causes a lot of confusion among customers. Simply put, a warranty is an agreement to make any repairs or replace defective parts during a specified period of time upon purchase – a 90-day warranty, for example. It is provided by the manufacturer or dealer and included in the purchase price of a product. By contrast, a service contract/plan is a separate agreement designed to provide protection after the manufacturer’s warranty expires.
Since a manufacturer’s warranty is only good for a limited time, having additional coverage for important purchases makes a lot of sense. An extended service plan (or vehicle service contract) is a popular choice among customers who want extended coverage on everything from consumer electronics, automobiles, home appliances, boats, power tools and other items they truly value or see as an important long-term investment. For instance, a cash-strapped college student who can’t afford to be without a laptop computer for schoolwork would be smart to invest in a service plan.
A service contract also offers additional benefits that generally aren’t covered under the terms of the manufacturer’s warranty. If you bought a new vehicle, chances are your warranty only covers defects and issues that came about during the design and manufacturing process. With a service contract, you can get supplemental coverage for important systems like the transmission and suspension, and ancillary product protection that covers paint, dent, fabric and windshield repair.
In addition to product and purchase protection, service contracts offer consumers convenience and peace of mind. There have been several articles as of late that all list this as one of the main reasons that people feel that a service contract is well worth the added expense. Should something go wrong with your purchase, you’ll receive immediate assistance. Plus, a service contract can be purchased for just a fraction of what you would normally pay for service repair or, in worst-case scenarios, an entirely new item.
If you do decide that you are interested in extended protection, the best rule of thumb is to always make sure that you carefully compare the service contract with the manufacturer’s warranty. Also, consider: 1) the cost of the service contract, 2) the types of coverage it offers, 3) the length of time covered, and 4) how you expect to use your purchase. And if you have any concerns regarding your service agreement or need help with a specific type of coverage, feel free to reach out to us. We’ll be more than happy to help.
Article Resource:-https://warrantech.com/blog/september-2016/what-is-the-difference-between-a-warranty-and-an-e/