Sure, extended warranties are often misunderstood by consumers and salespeople, but for retailers they can be used as a competitive advantage that can maximize product sales and build customer loyalty. No matter how careful customers are, the fact remains: products still break or malfunction. If not covered properly, that new fridge or dishwasher could end up costing far more than anticipated – and then nobody’s happy.
By effectively offering extended warranties on big-ticket items, sales associates can ease the perceived risk customers feel when making big purchases. Done effectively, this can reinforce the buying decision and improve the customer relationship.
The effective sale of extended warranties starts first with the right warranty partner and plan. But, with hundreds of warranty partners all claiming to be the right one for your company’s needs, the process of selecting a partner can be a big roadblock.
Sound overwhelming? It doesn’t have to be. Here are three key questions you should ask that will help you select the right warranty partner.