Warranty: Tailor-made ESPs
Rob DiRocco, vice president of sales and marketing at N.E.W., said more consumers are buying service plans during the recession, causing a 10-percent increase in attachment rates for his company. Many of N.E.W's dealers are doing better than 10 percent, he said, adding that those are the ones who take advantage of down times in store traffic to educate sales associates and sharpen their ESP presentation skills.
N.E.W. also makes sure that banding is in the right ratio to service-plan pricing, especially as product pricing changes. "We also look at what features we can add or change for a client to make sure they're offering service beyond break/fix—things like accidental damage and troubleshooting, which help reduce product returns," DiRocco said.
In the last 18 months, the company has invested in its consumer Web portal to help dealers more effectively sell online service contracts. N.E.W. has done this by giving buyers more data on service plans at an earlier stage of their Internet research. N.E.W. created a tool that will check dealers' Web sites and make sure that when an eligible product is being sold, there are prompts in place so the consumer is aware of the service programs.