Optimize Your Service Contract Operations: Increase Your Service Contract Revenue
A statistic to overcome: Companies realize less than 15% of potential service contract revenue.
Overall, unachieved revenue results from businesses not offering service programs beyond standard product warranties. Even when service programs are offered, the attach rates remain low as some retailers and channel partners may not focus on service sales, or customers fail to understand the value of these programs.
The opportunity to embrace: Automating the entire Service Contracts Management (SCM) lifecycle, from the initial sale, all service touchpoints, and renewals/upsells, of Extended Warranty, Maintenance, Subscription, and Service Programs. The goal is to help Manufacturers (OEMs), Third Party Administrators (TPAs), Retailers, and Channel Partners to set up, sell, administer, track, and analyze various service programs, with every step controlled by the OEM.
The functional value of automation is in thoroughly managing the details of these 8 crucial components of a successful service contract program:
1. Master Policy Management - Service Plan offers, terms and conditions, priced and coded by SKU.
2. Sales and Marketing Automation - External prospect data file loads via API, email campaign, and content management with or without invitation control for new solicitations, reminders, and renewals, flexible email trigger configuration maintenance, and direct mail file generation and export or API to 3rd party direct mail marketing vendors.
3. Contract Sales - Website links and landing page development, customer self-service plan inquiry, selection, and purchase, telemarketing desktop app, plan pricing availability query by product model and purchase/registration date, and provision to input promotion code and present offers for specific prospects.
4. PCI Compliant Plan Payment Process - Payment gateway integration, including credit/debit card process, pay in full or monthly installments options, expired/credit limit issues management, with email notifications and link to update and verify card details.
5. Service Administration - My Customer Portal for self-service, consumer validation of service plan terms and conditions, consumer online service request for self-service, consumer validation of service plan terms and conditions, consumer online service request and appointment booking with a qualified authorized service provider.
Also encompassed are customer telephony system integration, complete jobs dispatch management, with job authorization process from technician mobile app, and Service Parts Management – addressing needs for parts ordering via an app with supply partner integrations.
6. Claims Administration - Service provider claims submission and rules validation, and embedded logic for product replace or buyout-versus-repair designation.
7. Analytics/Insights/Reports - Track revenue generation including Attachment Rates, Renewals, Non-Renewal, Claims Severity, and Plan Profitability, with dashboards and user-defined custom reports, delivered as scheduled and on-demand.
8. Underwriter/Reserve Fund Files - Generate files of plan sales for Service Plan underwriter(s)/reserve fund.
Mize, a provider of Service Contracts Management solutions, is hosting the webinar, Optimize Your Service Contract Operation, Thursday, July 23, 2020, at 1 p.m. EDT. Register now to discover automation’s role to:
- Set up flexible service programs configured to the industry, product, and customer needs
- Administer Contracts, Support, and Claims to improve profitability and customer satisfaction
- Enable Channel Partners to sell, renew and fulfill Service Contracts
- Empower Customers to manage risk, limit repair costs, and minimize product downtime.
This webinar is a panel discussion format, hosted by Strategic Solutions Network and moderated by Michael Blumberg, CMO of Mize will focus solely on questions from the audience, with no canned presentations or sales pitches. This panel of industry veterans will be discussing:
Jimmy Bynum (Alexander & Preston, formally with Caterpillar)
- Comparing the different ways to manage the liabilities or risks of extended protection plans
- Challenges faced while establishing extended protection plan programs globally
- How companies truly convert data into information that has meaningful ROI
- How captive insurance ties to warranty and extended protection plans
- Service contract programs state-specific regulatory compliance
- Warranty and extended protection plan systems integration with inter-organizational ERP and service partners’ systems.
Darius Bullock (Electrolux)
- The most important objectives in building a service contract program
- Why Electrolux uses a third-party administrator for its extended warranty program
- Differences between running a retail organization’s service contract program versus a manufacturer’s retail program
- Proving the value of a service contract program, outside of revenue and margin performance.
- The importance of brand ownership to a program
- Scenario: When an Electrolux appliance needs repair that is covered by an extended service contract, who is responsible for fixing the issue and how is it done
Frank McMillan (Ensure Protect)
- The best methods to communicate to retail clients to market and sell service contract/plan programs
- COVID-19’s effect on service contract providers
- Advantages of being in the service contract space
- What will customers pay for premium coverage
- The best approach to program development
- How direct marketing is a highly effective channel for Extended Warranty Marketing promotional campaigns
- Choice: A self-insured or fully insured extended warranty program for retail clients.
Jim Rushton (Mize, formally with Service Bench/Asurion and Service Power)
- Highlighting how to manage the 8 crucial components of a successful service contract program mentioned above.
To see how the Mize Service Contract Management system can work for you, request a demo of Mize.
Tim Nissen has built companies through marketing in categories including technology, manufacturing, energy, commercial real estate and business services.