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What makes an extended warranty or warranty program secure?
Is it the size of the insurance company?
Is it the excess reserves?
Is it regulation of that state?
Is it the systems?
Yes….all the above matterm but what matters most is a complete understanding of, and devotion to, the needs of your customer, and how your company is nothing without that customer….
One customer at a time.
One policy at a time.
Safe and Secure.
In a service industry such as warranty and extended warranty administration and insurance, what happens when one company buys another, when another company has its president and VP of sales fired, when others are looking to raise money and another launches?
Opportunity for some.
Unrest for others.
Those that have opportunity are the stable players and the ones that operate with integrity.
Those that suffer unrest are the people that have entrusted their customers to the companies in our industry….Our customers. The retailers, associations and manufacturers that rely on us to deliver customer satisfaction.
Can you imagine if you just decided to do business with a TPA, did due diligence, signed an agreement, started integration, cancelled your current contract and suddenly heard that the people you dealt with in the company are gone and you are not sure who is at the helm? Not really comfortable. What would you do?
Our industry is not a product. It is a service. It is relationships. What does it mean when those relationships change companies or go away?
Unrest and Instability for the ones that have the most to lose….
Kind of Helter Skelter…..
Check out this You Tube video of U2 performing “Helter Skelter” by the Beatles back when the boys were long hairs….pretty cool.
Posted at 07:04 AM in customer retention, customer service, extended warranty, extended warranty management practices, songs as lessons in sales training, tpa or in house | Permalink | Comments (0) | TrackBack (0)
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Going back to my early days of sales I was fortunate enough to be trained by a guy name Jules Gilbert. His partner in training Jack taught us that sales was an honorable profession. What that means is if you learn your products and practice your trade with the customers best interest at all times, you are being honorable and deserve the same respect as any other profession.
They used a visit to the doctor’s office as an example and taught us Diagnostic Prescriptive Selling…D.P.S.
Think about it, if you visit a doctor he doesn’t prescribe a medicine or procedure without asking a few questions. If he did you would think him a whack job. He or she asks, what is wrong, how did it happen, how long have you felt like that, does it run in the family, on and on. As you answer their questions they are diagnosing your condition or need. That enables them to prescribe the correct fix. Some do it better than others just like in any profession, but generally there is a trust and respect because if this process….
Selling of ESP and the associated products is no different. If a customer comes in for a computer and you don’t ask what they are using it for, what happened to the last one, what their environment is and a host of other questions and just try to sell them whatever you want instead of what they need, they will consider you a whack job and walk out. You do ask a series of questions so you can diagnose what they need and prescribe the appropriate product to benefit them the most….that is the right way of honorable selling and if you do that you will earn respect and sell lots of ESP to boot.
Practice DPS as a general way of selling….it works…..as a reminder, have a look at this Jackson Browne video…..even if it isn’t about selling it is a great tune with Doctor in it…..maybe it will remind you to use DPS.
Posted at 09:00 AM in customer service, extended warranty, extended warranty management practices, extended warranty training, sales training, songs as lessons in sales training | Permalink | Comments (0) | TrackBack (0)
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I was asked last week by numerous potential customers about our ESP program we were introducing at a show I was at, “what happens if the drill just wears out”, or “are you just going to tell me that I wore it out and that it lasted beyond its intended use”? I am dumbfounded by this question? I would expect, “what if I drop it?” I would expect, “what if it is used for rental or commercially”? I would expect, “what happens if it gets wet”? I would not expect, “are you going to cover it if it wears out?”
Our industry better be careful. If the reputation is that we are not even going to cover wear and tear we have a problem. Isn’t that a benefit of buying an Extended Plan? Yes, sudden failure, and unexpected problems are a must, but how can we even think it is ok to say something like, “sorry that is not covered, you used it up”.
How can we continue to expand our dealer base if there is a Fear about Wear and Tear? Come on Industry….
Listen to this as a reminder, Jimmy and Robert and the band performing "Wear and Tear". Found it on You Tube….
Posted at 08:13 AM in customer retention, customer service, extended warranty, extended warranty management practices, extended warranty training, songs as lessons in sales training, Warranty | Permalink | Comments (0) | TrackBack (0)
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I am at a trade show this week in Boston. Many in our business attend trade shows to expose themselves to dealers or retailers. It amazes me that in 2011 we still find myriad people that still do not offer ESP programs. As we ask them why they have never offered plans we usually hear three reasons….1) Consumer Reports says they are a rip off, or 2) they have heard it is too hard to get paid for service, and 3) that they are afraid of upsetting their customers if we act like a “typical insurance company and give them the run around”.
For this reason alone shows are worth attending….
The biggest challenge our industry faces is to repair these viewpoints. Only we can do that The best way to do that is to do things right.
When given the opportunity to explain the advantages of offering Extended Plans, the show attendees learn the many benefits such as adding to revenue and bottom line, satisfying and retaining customers…..
However, with all that said, we still need to earn their trust and the only way of doing that is to do things right at all times….otherwise we are killing our industry.
Have a listen to these songs as a reminder to not let people walk on by your booth without engaging them….Repairing our industry reputation starts with one dealer at a time!
Here is Walk On by U2
http://www.youtube.com/watch?v=gwKEdFoUB0o&ob=av2e
and “Walk On By” sung by Dionne Warwick
Posted at 05:30 AM in customer retention, customer service, extended warranty, extended warranty management practices, extended warranty training, songs as lessons in sales training | Permalink | Comments (0) | TrackBack (0)
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Will bad news on the stock market affect your ability to sell Extended Service Plans? Yes, in a positive way. People want to feel secure that their investment will last.
Will a headline about the inability of our representatives affect your ability to deliver top notch customer service? Yes, in a positive way. Remember, you build your business one customer at a time. If you give people an experience that is great, you will set yourself apart from the headlines.
Don’t let the headlines get you down….Use the to lift your business up.
Check out this video of Joe Jackson doing “Sunday Papers”
Posted at 08:49 AM in Current Affairs, customer retention, customer service, extended warranty, extended warranty management practices, songs as lessons in sales training | Permalink | Comments (0) | TrackBack (0)
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Extended Service Plans are common. Top Notch Service is Not.
What should you do before you pick a TPA, Insurance Company, or Software Provider?
Visit LALA land. Look, Ask, Listen, Affirm
Look
Ask
Listen
Affirm
I could go on but suffice it to say, you are better performing LALA inquisition before you make a bad decision and you team up with a company that will place your program and your company in lala land.
Take a listen to this song by Steam as a reminder…..it’s not La La but it is “Na Na Na Goodbye” which is what your custmers will be if you don’t do your due diligence ahead of time…
http://www.youtube.com/watch?v=jsaTElBljOE
or you can listen to “Sha La La La Lee” by the Small Faces….
I get too many calls lately about this subject. What causes warranty providers to lose sight of their job? Maybe they think their job is to make money. That should be their end goal or a result of their job, but it is not their job. Their job is to help the dealer or manufacturer make or save money and/or satisfy customers. They can do this in a variety of ways while performing a variety of functions. Clearly that is their job. If they do not do this and make you or your customer miserable along the way, you owe it to them, to yourself and to your customer to get clarification and verification, or you need to make a change. Don’t wait. There are many TPA’s ready to serve you today or you can take it in house with the proper plans, software, reserves, captives and a host of options….
Our industry is based upon customer service and satisfaction and without that in the fore we put our industry at risk. I cringe when I hear of TPA’s delivering bad service. How does that happen?
Bad service can hurt and if you don’t make a change or make things right you run the risk of losing your customers, your profits and ultimately your business.
While this video and song are not specifically about the TPA industry they sure drive home the point…..Customers deserve the best you, your vendors and your TPA have to offer. Never lose sight of that. In this case United did. You can’t believe how often this video comes up in discussions……
This is called “United Breaks Guitars” by Dave Carroll and the band Sons of Maxwell and it has been playing on You Tube for quite some time now….
Enjoy and heed!
Posted at 06:46 AM in customer retention, customer service, extended warranty, extended warranty management practices, extended warranty training, songs as lessons in sales training, tpa or in house | Permalink | Comments (0) | TrackBack (0)
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Square Trade made the extended warranty business about price….different in perceived value.
Harbor Freight made their extended warranty business about over the counter replacements on tools…different in convenience for people that need a tool to get the job done.
Hyundai made their purchases include IUI, (Involuntary Unemployment Insurance) where you can get relief of payments if you lose your job….different in Peace of Mind.
Assurion enables Verizon and others to put the mobile phone coverage right on the bills….difference in affordability and close rates.
Many companies now offer accidental damage on your tools, laptops or other products…different in your oops coverage….
What else can be done to make your program different? Don’t let anybody tell you that you can’t offer what you think your customer needs. It can be priced. It can be administrated.
Want to make a difference? Always build your programs to the benefit of making a difference in your customers’ lives….that will enable you to get new customers, but as importantly hold on to the ones you got!
This may be a stretch, but I have always dug this video by Bon Jovi I found on You Tube. Oldy but a goody.
Posted at 06:00 AM in customer retention, customer service, extended warranty, extended warranty management practices, extended warranty training, insurance ideas that help sell more products, sales training, songs as lessons in sales training, types of extended warranties | Permalink | Comments (0) | TrackBack (0)
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Free Smiles
Free Good Attitude
Free exchange during manufacturer warranty
Free shipping
Free In-Home or On-Site Service.
Free—of deductibles, of sales tax, of hassles when customer service is needed
Free to Fly
Free to be Me.
What would it take to Free up your staff to Freely deliver great customer service free of worrying about giving it away for free.
The most powerful word in the marketing dictionary is Free. How about we use it more often in the warranty business.
Enjoy the videos this morning I pulled down from You Tube….The Best Things in Life are Free!
One by the Beatles, (Money---Just give me Money) and the other by Janet and Luther.
Posted at 08:05 AM in customer retention, customer service, extended warranty, extended warranty management practices, extended warranty training, songs as lessons in sales training, warranty policy | Permalink | Comments (0) | TrackBack (0)
Technorati Tags: frank mcmillan, free, free up your staff to deliver excellent free customer service, the best things in life are free, warranty wise
