While many retailers look at offering warranties as checking a box, they can be a big plus for a business.
Is your retail business treating warranties as simply a checked box, something that merely allows you to keep up with the competition? You may be leaving money on the table. While warranty protection definitely helps you keep pace with competitors and delivers benefits for customers, they can also provide retailers with another line of revenue.
Do we have your attention now? Good. Here are a few other ways your retail business can benefit from warranty offerings.
The feeling of improved customer loyalty
If you’ve been in retail any length of time, you know customer service is first and foremost. When your team excels at serving your customers, it builds loyalty and trust for your business—and often leads to repeat and referral business down the line.
And the power of solid customer service holds true when offering warranties as well. 25 percent of consumers say they’re more likely to purchase a warranty if it’s offered to them in a professional manner. Ensure your team knows these products and, most importantly, how they can benefit your customers. If you need an assist, the right third-party warranty provider can serve up training and education solutions to make sure everyone is in sync—helping produce happy customers while boosting sales across multiple KPIs. It’s a two birds, one stone scenario: sales associates can both get up to speed on the warranty product itself and learn about how best to position it during the sale.
The smell of new revenue
This may be one of the most commonly overlooked benefits to warranty offerings, but it’s pretty simple: when your customers are purchasing value-adds from you instead of another business, you can expect an increase in revenue. In 2016, customers spent $23 billion on protection plans for items like mobile devices, computers, and appliances—plans that provide coverage if these items break or catch fire, for example. Wouldn’t you like to be the retailer providing this added protection and enjoying the subsequent revenue boost?
If you’re struggling with making warranty offerings more than just a checked box, partnership with a third-party warranty provider like Fortegra can help you make them a revenue driver for your business. For more information on your next move, check out our lineup of warranty options.