Warranty Wise

Memory Assets VS New Energy

employees motivated to sell ESP.  The can sell with aplomb if they put the effort in, but they seemingly choose to bomb.  On the flip side, it is notable to watch excitable new employees sell with PPP with abandon often to bomb because they do not have the experience how to properly present or handle objections. However, the newbies often outsell the long-termers because they try.

 

How do we get experienced employees to sell with abandon and aplomb?  Aplomb versus bomb.  How do we get the new people trained well enough to sell with abandon and aplomb?

 

Put them together.  Mirroring, Shadowing, whatever you want to call it.  You can not replace experience with on line or written training.  However, make your choice wisely.  The teacher needs to tap into the energy of the student, not drain it or dull it.  This assignment can rejuvenate the one with experience that there is so much positive to share.

 

How are you communicating this and managing this important part of running your business?  Is all about the mix and proper balance.

 

Watch this old Milton the Monster Opening.  Talk about memory assets.

 

http://www.youtube.com/watch?v=4S13Dpt1U_g

Stretching the Truth

“Anything that happens is covered” is different from “if your product fails we will replace it”.

 

Or is it?

 

Be specific.

 

If it is a repair or replace plan that covers failure from normal wear and tear, say that.

 

If it covers accidental damage….say that…..if it doesn’t….don’t hint that it does.

 

If it covers weather damage…..say that….if it doesn’t….don’t hint that it does.

 

If it covers maintenance….say that….if it doesn’t…don’t hint that it does.

 

Verbiage is Visual, (especially when you use Visual Aids)

 

Honesty is the best Policy.

 

Honestly is the best PPP Policy.

Show and Tell

If you read my blog or are a customer of mine you know that I am a big “Show and Tell” guy. I heard on the radio this morning how much show and tell meant to the morning team.  Memories. We are so visual.  Of course when we grow up “Show and Tell” becomes “Playing Doctor” which is an adult version and a lot more fun!

 

Remember today to use visual aids in your sales and communication.  Check out this “Playing Doctor” video I found on You Tube.  Kind of makes you want to Show and Tell or go Play Doctor today.

 

http://www.youtube.com/watch?v=9EP8WVxf8Pk&feature=fvw

ESP Is Skiing

I am in Colorado skiing.  What a week. It snowed for the three days straight before we got here.  Our first three days have been sunny bluebird days.  Each night we have been here we have received a fresh dusting of champagne powder for a lovely magic carpet to float upon with pack just underneath to carve into. Fast, Fun, Phenomenal.  I feel spoiled.

 

Why am I talking about skiing in a warranty blog you ask?  Here it is:  ESP is like Skiing.  What you say?  Has the warranty dude’s mind hit too many drifts?  No.  Here is how they relate:

 

• You have to learn the basics. You have to be willing and coachable. You have to seek the best way to become good at it because the better you are, the more you enjoy it.
• You have to practice.  Just watching and hearing will not make you a pro.  You have to actually make mistakes, learn from them. You have to enjoy the successes and continue to apply what worked.
• You have to have the right equipment for skiing. Different conditions require different styles of skis.  In ESP you have to have the right tools and in most cases those are visual aids and scripts of many sorts.
• Different terrain requires a different approach.  You have to change it up a little.  Different customers require a different approach too.
• Be aware of your surroundings and others on the slopes.  They change and you can get hurt if you do not have your eyes open. In ESP, there will be changing objections and others around that will try to ruin your mojo.  You are in control of your mojo as long as you pay attention.

 

Some days are better than others.  No matter.  It always feels good if you give it your best. That is the biggest analogy of all.

 

Nobody Knows

Who is the most authoritative brain on people’s propensity for PPP?  Who sits around and actually studies people’s buying habits?  Who ties those into whether the offers were done in such a way that a positive decision could be reached and how those actual deliveries affected the purchases?  We know what percentages of people buy Extended Service Plans based upon attachment rates, but who knows how many people would really buy if the employee or the web site or the call center person did an excellent job?

 

Nobody knows.

The Warranty Concepts Annual Awards

The WCAA’s.  What do you think of the sound of that?  There are industry awards for advertising, best products, best apps, best movies, best shows, best plays, best music of many genres.  I could go on.

 

What about our industry?  I am going to start our awards today. I will bring them up at the CES show this week to many of my industry friends.  Haven’t decided on the criteria. Have not decided on the rewards.  Have not decided on the awards categories.

 

Here’s a few ideas to start:

 

• Best Publication
• Best New Program
• Best TPA
• Best Insurance Company
• Best In House Program
• Best Training Program
• Best Application
• Best Service Network
• Most Consumer Friendly
• Best Warranty Association
• Best State Agency

 

I am looking for input and sponsors and this project starts today.

 

I will give a monthly or quarterly update.

The Right Message

What does your written material convey to your customers about the value of your extended warranty programs?

 

Do they say, ‘hey we just want to make extra money”, or do they say, “look at this, we offer some tremendous protective programs that are not available anywhere else and are so easy to use that you will be a happy camper”.

 

Have a look. 

CBS Sunday Morning on 11-28-10 questions the value of Extended Warranties

Once again, a news agency has decided to regurgitate Consumer Reports in opinions that buying Extended Service Plans is not a good investment.   This is not new nor is it news.  I am amazed it showed up on my favorite Sunday Morning show on CBS.

 

Here is what I say…..Extended Service plans can be an unnecessary investment…..They can be a fabulous investment.  Duh.  If your product breaks and you get it repaired or replaced then that is a good investment. No argument.  On the flip side, even if you do not use the extended plan, (meaning the product actually doesn't fail), you still have the peace of mind knowing that if it were to fail you would not be out any more money or inconvenience….That is really the message they miss…..convenience, time saving and peace of mind.  It is not all about simple dollars and sense. In fact if it was, they way it works is the risk is spread out amongst those that do invest in the coverage and they pay very little for a lot. 

 

Yes, there are bad companies that hide behind fine print and take the money and run, but overall, the industry is driven through retail and manufacturing and neither of those “Branded” industries can afford to tell people no.  They have their eyes open for you.  Their mission is to build brand and reputation and extended plans help them do that….

 

Here are just a few things that many people are happy to own ESP or other creative coverage upon:

 

• Accidental Damage on Wireless, power tools and laptop type products.
• Loss of Job coverage on Autos.
• Weather damage coverage rolled into warranties on things like RV awnings and Covers.
• Simple over the counter replacement plans on inexpensive items that likely have short life span.  These are super convenient and very popular….

 

I could go on, but it doesn’t take a rocket scientist to know that if your product has no moving parts and is in a controlled environment that the likelihood of using the ESP is slim, but I am tired of News that is no News and does not reflect the other side of the story.

Look, Listen, Live

Look, listen, live…Three words to live by in the railroad business.  I learned this at my daughter’s wedding when my son-in-law’s brother-in-law recounted his stories about Eric growing up.  One of those memories was that when Eric was a little guy he had a poster of a big train in his room with those words.  Eric’s dad was a manager of a major railroad so that had some deep meanings.

What do you have posted in your back room, office, sales floor, hallway, break room, or other well traveled area that says a lot in just a few words and/or pictures to drive your ESP program?

·     Upsides of ESP

·     3 Steps---Question. Show and Tell, Question

·     Remember the 5 R’s

·     PPP Qualifying Products

·     What Can Happen?

·     Never and Unhappy Customer---Not Even One.

·     One Customer at a Time

·     Protect Against Zero

Get the Message Out.

“Don’t Give Up”

Have you ever seen the Gabe live?  There is a Peter Gabriel song for everybody.  You can probably hear “Sledgehammer” and “In Your Eyes” as these were huge commercial successes and are catchy tunes indeed.  His Genesis days were legendary.  One of my favorites of his is a version of “Don’t Give Up” performed on his Secret World Live DVD. This song melts me.  Especially when Paula Cole sings, “you worry too much, it’s gonna be all right”.  Paula’s voice is so special.  Check it out.

 

Those words, though in the middle of a touching song, can be plucked out to pertain to business. As leaders, often we get so busy we forget to listen to, or even observe, our employees challenges.  With ESP sales this can cost you.  Don’t forget to communicate to your staff that as long as they practice, are consistent in their approach, and apply visual aids at all times, their attach rates will be strong.  They will sometimes go customers, days, and even a week without nailing the big one, but fortunately for them, one customer, one day, one week does not make a month, nor a month a year.  They can and will succeed if they don’t give up.

 

Remember, just saying, “Don’t Give Up”, or “You worry too much, it’s gonna be all right”, will go a long way in letting your employees know your are watching them, you appreciate them, you care about them and you have their back.

 

That is the best kind of atmosphere to work in.