Monthly or two-year upfront? Sure, it depends; but upfront plans can pay big dividends for both dealers and customers.
‘Should I be selling monthly or upfront protection plans?’
When we talk with our reps, we get that question a lot. Customer needs will vary, so there’s no right answer. But we do think upfront plans can offer advantages for both dealers and customers. Here’s why:
Increased Customer Retention
- With two-year, upfront plans, customers pay for their plan just once…and they never have to worry about it again.
- Once a customer leaves the store, they may forget the value of their purchase. Monthly plans make unwanted cancellation easier.
- Upfront plans eliminate potential challenges like credit card expiration dates, fraud, and consumer information errors.
- As mentioned above, monthly customers may cancel their protection early. This can result in commission chargebacks for stores taking upfront commission. We know you don’t want that.
- Here’s something: most upfront plans come with bigger commissions. (Do we have your attention now?)
- By offering the customer the opportunity to receive a discount, reps can maximize their protection paychecks. Cha-ching!
A Healthy Upgrade Cycle
- Upfront warranty plans help customers stay on the sales cycle, keeping them protected for the entire two-year term.
- Our mobile protection plans come with BuyBack, which pushes the customers back into your store when it’s time to upgrade. This gives you the opportunity to sell them a new plan.
- Purchasing a two-year plan up front allows customers the simplicity of paying only once and helps them avoid seeing an extra charge on their monthly statement.
- Two-year plans ensure the customer’s device is covered for an entire two years. That’s a lot of valuable protection.
- And finally, customers can save a bundle by paying for two years of protection in one lump sum. Check out these pricing options for our mobile protection plans:
Customers save $54, equivalent to five free months of protection benefits
Customers save $50, equivalent to five free months of protection benefits
Customers save $76, equivalent to eight free months of protection benefits
Customers save $64, equivalent to 10 free months of protection benefits
Spotting Upfront Plan Customers
So, who is most likely to purchase an upfront protection plan? Well, for starters, customers who see the value of paying less by purchasing a full plan up front. But, less obviously, customers who are reluctant to share their personal information with you, such as their social security number, might also show interest in an upfront plan.
The next time you offer a protection plan, here’s a great way to break down the benefits and close a two-year sale:
‘Mr. Customer, you can pay $10.99 per month or you can pay $209.99 in store today and save big. Over 24 months, your savings will be equal to getting five months of free protection benefits. Which payment method would you prefer?’Give it a try! Let us know how it works by tweeting us @Fortegra. approach, not the ‘Treat Customers Rudely’ approach. Remember to disengage as politely and professionally as possible. (Note: it doesn’t hurt to check in every once and while to ensure a positive customer experience.)
The best part of these three approaches? They can be used together. That’s important, because when it comes to the sales landscape – particularly furniture – the right approach can mean the difference between meeting sales goals and falling short.
Give these tactics a whirl and let us know how it goes on Twitter @Fortegra.