Most wireless dealers have an extended warranty program that they have committed to selling. However, many store owners do not have enough insight into how the warranty program is performing. When you don’t have the data needed to show you how a particular part of your business is performing, components break down and go awry. Don’t worry! There are signs to watch for to avoid the worst from happening.
1. New Customers Aren’t Buying the Protection Plans
If customers are not buying protection plans from you, the most likely reasons is that your team members aren’t selling it well. Look back at your transactions. How many protection plans or extended warranties were sold with each device? If you’re tracking less than 30%, you need to reevaluate a training plan to get your sales team on board with up selling protection and warranty plans for your devices.
2. Customer Churn has Increased
When your extended warranty program is implemented and sold properly, you should see a reduction in churn. There are several reasons your customers could be churning. One reason may be that the experience your customer encountered with your warranty plan provider was less than exceptional. Maybe the device took too long to replace or repair, or maybe the customer service wasn’t helpful. It’s also possible that the retail company your customer used went out of business. The company could have been running their own warranty program which went under with the company. When this happens, your customer will turn to a competitor for help, or decide that the protection plans are not worthwhile. This leaves you with a difficult job of building trust with the customer and ensuring security for their plans. Companies like W3 Solutions prioritize customer service and guaranteed so your customers never lose their coverage.
3. Customers are Unclear About Coverage
When making a claim, it is extremely important that the customer is clear about the coverage available to them in their plan. It’s particularly infuriating to customers when they have purchased an extended warranty, try to make a claim, and then find out that it isn’t covered. By ensuring you have a completely comprehensive warranty program in place with a highly educated sales team to explain the ins-and-outs of what the customer is purchasing, you can negate this risk and keep a satisfied customer base for the long term.
What Should Be Included in an Extended Warranty Program?
Now that you know what signs to look out for in your current program, here are some things that should be a part of a solid extended warranty program should you choose to switch providers:
- Customized programs for your business
- Customer incentive programs
- Standard coverage that includes mechanical or electrical failures, display, antenna/wifi failure, broken dock connector port, touch screen failures, powering on failure
- Premium coverage that includes spills and drops
- Sales and marketing materials to help you get off the ground
- Sales team training to ensure your extended warranty program is enabling more revenue
Additionally, the timeline for repair or replacement should be quick and easy, with exceptional customer service so that your customers return to your store every time they need help repairing, replacing, or buying a new device.
What are things are important to you for a warranty program’s success? Let us know in the comments.