News and views from the automotive industry.
How to protect and boost car retailer warranty sales
The convenience of internet shopping, as well as the ease of finding the best deal, is seeing consumers increasingly spend online – even when buying an extended vehicle warranty. Dealerships must protect their businesses with a proactive approach to sales and by embracing the digital revolution.
Making extended warranty purchases through a website is an essential first step, as customers expect to be able to transact online these days. Car Care Plan provides a full online service for the sale of extended warranties through our retailer partner websites – with more than 70% of purchases being made on the web.
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First time purchases and renewals through your website
Paul Newton, Chief Executive of Car Care Plan, said: “Making it easier for customers to transact should be a core aim for all dealers and letting customers renew their warranty cover online is a great way for retailers to extend their relationship with consumers. Car owners can extend warranty cover at their own convenience, can select a payment plan that fits their needs and can do all of this without tying up dealer staff in the showroom.”
Beyond websites, car retailers are in a perfect position to talk to customers about purchasing an extended warranty while they are on the forecourt. This will have benefits for both sides. Customers get peace of mind and financial cover should their vehicle suffer a fault. While retailers boost their profit as well as customer retention and satisfaction ratings.
Learn more about vehicle warranty boosting customer retention in our blog.
Top tips for boosting your warranty sales
The sale of an extended warranty can help retailers build a trusted relationship with customers. Using merchandising, videos and leaflets can all help with the upsell. Here are our top four tips to improve your warranty sales:
- Explain the product clearly and fully – avoid jargon and baffling graphs and keep things simple. Customers must understand a product if they are going to make an informed purchasing decision.
- Cover the pros AND the cons – explain the benefits and the exclusions on the policy. For example, age limits, service and maintenance requirements, and mileage limitations.
- Be clear on the type of warranty – is it personal, extended or manufacturer’s warranty? Ensure the customer knows which they are purchasing and explain the benefits and restrictions of each, so they can make the right choice.
- Discuss any overlap or complement with other add-on products – does the warranty overlap with any other cover they are considering for their vehicle? Similarly, discuss how other add-on products may be a complement, such as roadside assistance or GAP insurance.
Download our FREE Complete Guide to Warranty to learn more.