Warrantech

Using a single-source provider for underwriting and administration offers gains in profit and service. The real question isn't what's behind the fine print, but rather who is behind the fine print of an extended service plan. In today's economic climate, retailers need to be diligent in determining who can financially back and service their products with plans that don't negatively impact bottom line results or customer relations. While some retailers prefer to act as their own administrator for service, the overhead costs and time required to facilitate work orders, customer service and repairs can often lead to eroding profits and dissatisfied customers. For retailers that opt to rely on an outside provider for administration or underwriting, it can expose your business and customers to financial risks and service levels that don't align with your business goals.   As a retailer, customers trust that you'll stand behind the products you sell with service pla...

A recent trend in the service contract industry is the emergence of administrators attempting to create a strong brand identity with consumers. Many administrators are working diligently to create brand recognition for their organizations by branding the protection offerings they sell through retail partners. The question is often asked, "Is this new approach in the best interest of the retailers?" AMT Warranty and its subsidiary Warrantech's view is that the recent "brand building" business models employed by many administrators in the industry serve only to benefit the administrators and not their retail partners. This belief is derived from our core philosophy about the purpose of service contract programs. It's indisputable that service contract programs should provide important incremental revenue for retailers. However, our view is that a well-designed and maintained service contract program should drive customer loyalty and retention for the retailer...

Warrantech was named as a finalist today in the Award for Innovation in Customer Service category in the 9th annual Stevie ®  Awards for Sales & Customer Service. This marks the third straight year that Warrantech has been recognized as a Stevie Award winner. Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction. More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014. Entries were considered in 54 categories for customer service and contact center achievements, inclu...

In the world of extended service plans (ESPs), extended warranties, or service and parts replacement programs, many consumers have become immune to the common tactics used to sell these programs. In fact, if your sales team is still selling the “what if” scenario to today’s ultra educated consumers, your store is losing out on valuable sales that help drive high-margin growth and revenue.   According to NBC News, extended warranties help fuel a booming $15 billion-a-year business; therefore, it’s imperative that retail sales personnel hone their sales approaches for “add on” sales such as ESPs. Through ongoing training and education, sales teams are better able to overcome “new” objections to these profitable plans and figure out which plan best suits the consumer’s need.   The below selling strategies are simple, but effective ways to help your sales team illustrate the value of ESPs and therefore convert more consumers: Get consumers’ attention  — By stating the obvi...

Sean Stapleton, president and CEO of Warrantech/AMT Warranty will be presenting at the 2015 Warranty Chain Management Conference on March 11 in Miami. The following is an excerpt from Warranty Week  in anticipation of the event.  The technology is changing. The need for repairs is changing. Even the concept of ownership is changing. And the way people shop is changing. Two industry experts describe how they see these changes impacting warranty and service contracts. At this year's Warranty Chain Management Conference, attendees are immediately going to be challenged to face the changes that new technology is forcing upon our industry. It's going to be a bit upsetting, especially to those who like the status quo. Rather than hearing about the latest best practices in the break/fix business, and how everything is slowly going to get incrementally better, attendees are going to be told how driverless vehicles will challenge the whole idea of automobile ownership, a...

ean Stapleton, Warrantech president and CEO, recently took part in an executive forum with  TWICE  magazine. Here’s what he had to say in response to the following question:   In such a competitive category, how do you stand out and differentiate yourself from amongst the competition?   Warrantech Corporation delivers customized programs tailored for the unique needs of our partners. We do not agree with the “one size fits all” approach which is becoming pervasive in the industry.    Unlike other providers, we offer partners the flexibility of extending their brand to their service contract programs. We believe that this approach reinforces our partner’s brand and helps drive customer loyalty and retention.   Additionally, we offer extensive missed point-of-sale programs designed to enhance the relationship between our partners and their customers and drive substantial incremental revenue.    Warrantech is also a subsidiary of AmT...

As a retailer, you know that extended service or warranty plans are a natural product offering for your business. They’re both comforting to consumers and profitable from a business perspective. But how much do you know about how your warranty programs work? Who are the players involved and who’s responsible for the various elements in fulfilling the plan? What’s your return on investment? Understanding the life cycle of your warranty plans not only impacts your customers and profit margins, but also your brand.   Start Here Filling in the family tree of a warranty program can be a confusing process. Who’s responsible for what, when and for how much can be seen as a burden that many retailers choose to disregard. But, unless you know the answers, you’re leaving your store and customers at risk.    An easy starting point is uncovering who the insurance company is that’s covering your plans. The insurance company, or underwriter, is the one who insures claims li...

Service contracts and extended warranties can be a great source of revenue for retailers, manufacturers and distributors. And their use as a customer satisfaction and retention tool can never be overstated. But what happens if your administrator ceases operations or is otherwise unable to service your business? To be an approved administrator, certain licenses must be obtained along with proof of financial stability. Most administrators in the marketplace satisfy this last requirement by securing a contractual liability insurance policy (“CLP”) issued from an insurance company. This CLP requires the insurance company to “stand in” for the administrator in the event the obligations to the consumer have not been met. But what happens if the insurance company cancels the administrator, cannot provide administrative capabilities or ceases operations? While the name of the administrator, and often the insurer, is listed in the service contract, when the customer seeks payment...