Consumers want and demand a protection plan products to cover things they buy. They want it so much that it has grown to a larger than $38 billion market. However, many retailers find it hard to do well.
Offered consistently near the end of a sales transaction, sales people communicate the features and benefits of the protection plan to the consumer hoping for an add on sale. This additional purchase not only is important to the consumer, it helps the retailer maintain their overall margin mix per transaction and is critical to a retailer’s survival.
However, with online sales on the rise, many retailers have had to cut back on in store sale associates which in turn affects the success of an overall protection plan strategy. Furthermore, staff are being required to remember more, do more and are nowadays stretched thin.
The fact is retail salespeople are a transient population which makes maintaining and training a skilled workforce a challenge.
How can retailers continually maintain programs under such conditions?
In the world of protection plans, Warranty Life has an answer to that question. We’ve taken the approach using data analytics in support of the sales person on the floor. Through our technology, we guide the sales person through a product sale based on a success model. As each sale or no sale takes place, we learn, adapt and improve for the next opportunity. Our system ensures the salesperson is always giving a message that resonates with the consumer, without the need for extensive training.
As maintenance requirements are reduced, we free employees up so they can focus on other things, meanwhile we raise conversion rates in store.
Our goal is to make it a win win. Consumers get the product they want, while salespeople feel good about helping their customer and achieve their sales targets. Retailers in turn succeed in selling more product that goes towards their bottom line and helps keeps jobs.
A protection plan strategy can be used to not only raise margins and revenues, a properly designed approach can keep customers coming back to your store time and time again.
Are you a retailer needing to improve your warranty strategy? Ask us how we can help.