Most consumers have a preconceived view about of extended service plans as protection they don’t need. How you train your sales team to present your plan to the consumer can make a huge difference in your success rate and in customer satisfaction levels. Here are just a few tips for successfully selling ESPs:
Unfortunately, retail has experienced some struggles in the last five years, and many companies have stopped training employees to sell extended service plans. Instead, some stores put plans in plastic packaging near the checkout with other impulse purchase items. They hope the customer will take the initiative to read about, understand, and buy the ESP on their own.
This kind of impulse buy may work for gum, but not for an ESP, which requires an explanation of benefits. Customers need help understanding the value of this investment. Depending solely on a point of purchase display to sell the plan is not impossible but more than likely won’t succeed.
How much of a priority is selling extended services plans to your managers and employees? We’ve found that some companies offer ESPs to their customers begrudgingly. They’ll offer them because they are told they have to or because their competitors do, but they never fully embrace the concept or the benefits. This is a costly mistake. The benefits to your company, your associates, and your customers, far outweigh the time and resources you invest in working with manufacturers, negotiating with insurance companies, and training your team how to properly present ESPs to your customers.
The return on investment of selling extended service plans includes four major benefits...
Originally published in Twice Magazine
Christmas is coming, and I'm sure that once again a leading consumer advocacy magazine or television news show will take another shot at the extended warranty and extended service plans business. As someone who has spent more than 20 years training retailers on how to successfully sell extended service plans (ESPs), I'm always amazed that these outlets consistently display their prejudice and lack of knowledge toward the service contract industry as a whole.