How Mobile Retailers Can Increase Protection Plan Attachment Rates

by Scott Walker on September 15, 2016
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Extended warranties are the backbone of a mobile retailers profitability. It is imperative that sales team members hone in on refining their sales approach and have a genuine understanding of how to pitch “add on” items such as extended warranties and protection plans. By implementing a program that encourages ongoing training and education, sales technique practice, and incentives, the sales team will better be able to overcome objections and upsell protection plans to customers and improve the store’s attachment rates.

What kind of selling strategies should a sales team use in helping improve their protection plan and extended warranty sales? We’ve put together a list of seven simple, but effective, ways to convert more customers.

1. Pique the Customer’s Interest

Many customers have done research online about the kind of phone they would like to purchase. They come into the store to purchase the phone and leave without hassle. This can be a predicament for the sales team trying to add on extended warranties for the customer. They best way to overcome this is to peak the customer’s interest through conversation. Asking questions such as “Have you ever had to replace your phone? Did you have an extended warranty,” keep the customer engaged and talking. It also makes it simple for the sales person to follow up with “Did you know the product only comes with an manufacturer warranty? It’s only good for one year, and doesn’t cover any damages that may occur outside of factory defects.”

2. Listen to the Objections

Many salespeople have an objective - to sell more protection plans. Often the objective is such a priority that the team member doesn’t remember to listen to the objections coming from the customer. When you train a sales team on the most common objections, practice listening exercises, and work through objection handling, they will be able to take anything that is thrown at them.

3. Be Transparent About Options

Extended warranty programs are not always one-size-fits-all. Ensuring the the customer understands the different options available to them is imperative to closing the sales. By laying out the options in detail, the salesperson extendeds the conversation while putting the customer in charge of their own destiny.

4. Focus on the Benefits

Sometimes when dealing with a negative customer, it can be easy for a salesperson to fall into the negative by way of conversational habits. However, beware of being too off-guard. Make sure to focus on the benefits of the plan, how it can save the customer from large costs in the long-run, and the details of what the plan covers.

5. Underscore Credentials and Experience

When purchasing a mobile device, many customers go in thinking the salesperson is part-time, or doesn’t consider this a career. The customer, in this case, is mistaken. Training a sales team to take pride in their credentials, experience, and expertise will offer a new line of communication between themselves and the customer. For example, using phrases such as “In my experience,” and “From what I’ve studied about protection plans,” helps to underscore the knowledge of the staff and builds trust with the customer.

6. Manufacturer vs. Extended Warranty Plans

This is obvious to most mobility retailers. The manufacturer warranty is not a replacement for an extended warranty or protection plan. Spend time educating sales staff on why this is not the same. Because this is one of the main objections heard on the sales floor, arming a your team with the details of the differences will be critical to closing the sale.

7. Don’t Hide the Fine Print

Many customers buying a mobile device are weary of protection plans. It is possible that they were unclear about what was included in their last plan and felt they were taken advantage of. In fact, most customers who do not want "to purchase" a protection plan feel this way. This should not discourage a sales team. It is an opportunity to provide excellent customer service by being completely transparent about what is included. Read the fine print to the customer. Answer detailed questions about coverage and close the sale.

By implementing the above sales tactics into your extended warranty program and sales training initiatives, you will see attachment rates for your protection plans increase. If it seems overwhelming to implement something like this on your own, do not worry. Companies like W3 Solutions offer a complete program that includes training, education, and follow up on your success. You can request a free consultation to learn more here.

What other tactics are you using to improve attachment rates?5 steps to setting up a warranty program cta

Topics: Extended warranty, Mobile