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Selling the added-value features of warranties, such as cover for damage caused by accidents, is vital to increasing conversion says Lee Miller, Director of Sales at Domestic & General.
Most customers are aware of the breakdown cover that a warranty or service plan offers but do they understand all the benefits? It is the added-value features of products like D&G's Safehands service plans that can clinch a warranty sale, so it is essential sales staff can sell the sizzle and not just the sausage! One of Safehands' most sizzling features is repair or replacement of the product should it get damaged by an accident in the home.
Should the dog chew the remote, the kids smash the screen with a thrown toy or the TV be damaged in a wild Nintendo Wii moment by mum and dad (and these incidents happen every day!), a D&G service plan will cover the cost of repair or replacement in almost all cases. In fact, breakages caused by children and animals makes up by far the largest proportion of damage claims across D&G's almost 10million active service plans. This is a great statistic to entice your family-orientated customers.
Of course, some customers might argue that these accidents will be covered by their home insurance policy anyway. However, a claim on a home insurance policy is just that - a claim. It is likely to be subject to extensive form filling, negotiations on the worth of the product in question and debate over the repair or replacement value. The sum paid out through a home insurance policy may be further reduced by the policy excess and, after a claim, most home insurance policy premiums will rise in subsequent years. Worse still, when a home insurance claim is settled it is likely to be a simple cash payment leaving the customer to instigate the repair or replacement themselves
No such issues with a D&G service plan. All repair calls, whether caused by fault, wear and tear or damage by accident, are all handled by D&G's award-winning customer contact centres. There is minimal form filing required, no excess to pay and an engineer will call to assess the problem, usually within 24 hours. Chances are the product will be repaired without any additional charges on the spot. Even if it is found to be beyond economical repair, a replacement product will be sourced and supplied through the retailer that sold the warranty
