How to raise your attachment rate – for retailers

In the last article we discussed raising attachment rates for e-commerce dealers found here:
https://www.cpscentral.com/maximize-your-warranty-attachment-rates-the-winning-formula-for-e-commerce-dealers/

While e-commerce dealers saw higher sales figures during the Covid-19 lockdown, CE and Appliance retailers saw a significant dip in sales figures. From cleaning their showrooms 3x per day to arranging curbside pick ups and juggling phone orders without a staff, were just a few of the typical scenarios that were taking place throughout the industry. This article is dedicated to the hard working independent retailers who fought this battle for the past few months to keep their businesses afloat. Most states are just beginning to lift the lockdown order which will allow essential and non-essential retailers to start to see light again. These steps will help retailers increase their warranty attachment rate while they regain their footing back in the marketplace.

Step #1: Program awareness/Store signage
Each product and department must contain signage indicating an extended warranty is available. The more information creating awareness the better. Stickers on the display products, trifolds, lucites and relevant marketing material need to be prominently displayed on the items and in all warrantable departments. Comprehensive coverage also applies here, the more products you offer coverage on, the higher your success rate will be. Promoting the benefits of what the program covers are essential to making your program successful. If the retailer is also a service center, as in the case of many appliance retailers, CPS enables dealers to service the products they sell under the dealer/servicer program. This is a massive advantage for retailers and customers alike. While the customer can get quick and efficient local service, the retailer also makes residual income from CPS by servicing their existing customer throughout the duration of the warranty contract. The dealer/servicer cycle is a prime example of how retailers can increase profit margins and customer loyalty.

Step #2: Training, Training and more Training!
I can’t stress this enough, constant employee training is the key to a successful retail warranty program. Associates must all be knowledgeable and aware of the program attributes and benefits. CPS will train the retailers staff and help the associates understand the benefits of the extended warranty program. The CPS team in conjunction with the retailer designs monthly contests to keep employees motivated and apprised of the program details. As in any area of business the people are the secret sauce.

Step #3: POS (Point Of Sale) integration
Up to this point the marketing material and staff awareness are considered primers. The POS integration is where the majority of sales are closed and is a critical part of the process. The prompt for the extended warranty option in the POS system must be injected into the checkout process for all warrantable products. Furthermore, the option should be presented verbally as well. CPS produces customized videos and scripts for dealers to help train associates to maximize attachment rates. Associates trained by CPS will not simply offer the protection plan, they will know and understand the benefits as to why the optional coverage makes sense for the underlying product. The CPS IT staff has extensive experience in POS integrations and performs this service for retailers free of charge.

Step #4 Follow up campaign / Cover Your Assets (CYA)
One of the major benefits of working with CPS is the Cover your assets (CYA) call center team.
CPS employs a fully staffed CYA call center to make follow up calls to your non-attached customers on your company’s behalf. Most independent retailers do not have the time or extra staff to make follow up calls to customers and offer extended warranties post purchase. The CYA team handles this task for dealers and enables them to collect commission on every sale made. Additionally, the program provides residual income to dealers for years to come.

The bottom line: Increasing your attachment rate requires constant effort on behalf of an expert provider and retailer. The set it and forget it method will fail. Constant monitoring, effort and training will increase your attachment rates and slant the odds of success in your favor. CPS is dedicated to constant and never ending improvement. It’s embedded in our company DNA and it will resonate throughout your program as well.

About CPS
Consumer Priority Service (CPS) is a leader and disruptive innovator in the field of service plans. The company offers extended warranty coverage for virtually all types of consumer purchases ranging from high-end consumer electronics to computers, major appliances, power tools, lawn & garden equipment, and much more. CPS delivers award winning service and is rated the #1 service provider according to www.toptenextendedwarranty.com. All plans are backed by an A.M. Best Rating of “A-” (Excellent) Insurance carrier. Learn more about CPS by visiting www.cpscentral.com. Apply today to join our executive sales team at www.cpscentral.com/jobs.aspx.