How do you Plan to grow Service Contracts Revenue?

Your product install base provides a huge opportunity to grow service contract revenues and profits, but attach and renewal rates for extended warranty and service programs (EW/ES) stay below the desired levels.In a recent study among professionals involved in selling Extended Warranty /Extended Service (EW/ES) programs, they were asked about their Plans to Grow EW/ES Revenue. Here is what their responses indicated:

• A plurality (43.5%) of respondents have experienced an increase in EW/ES revenue over the last two years
• Almost the same percentage (43.3%) expect EW/ES revenue to increase over the next two years
• Most frequently mentioned plans that respondents will implement to increase EW/ES revenue include:
  • Increase % of installed base covered under an EW/ES program
  • Expand scope of service offerings
  • Increase contract renewal rates
  • Automate process of configuring and pricing customized EW/ES programs

The Best Practices from the industry can be a good source to find the strategies and tactics to become more effective in marketing and selling extended warranty/service programs. In a series of articles, we have been exploring these practices that can help you grow service contract sales.

You can read previous three articles in this series on the best practices:

• 5 Opportunities to Increase Extended Service Warranties
• What do you cover with your Extended Warranty and Extended Service Programs?
• Key Factors Driving Revenue Growth in the Field Service Industry