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:
Eric Marlan, a Senior Product Manager with Mize, manages the product roadmap for the Mize Connected Customer Experience platform and Smart Blox modules focused on the areas of Registration, Warranty, Parts, Service Plans, Support, Field Service, and Knowledge.