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Online extended warranty sales vital for retailers’ revenue growth
The internet is playing an increasingly significant role in the sale of vehicle warranties, said Car Care Plan’s CEO Paul Newton. And customers who purchase a warranty through their car retailer are much more likely to return for repairs, renewals and, eventually, another new car, it was found.
“Our partners have already got to grips with offering warranty online. Online purchase is playing a significantly increasing role in sales volume and the sites are a valuable tool in helping retailers to retain their customers for longer. We all live in an increasingly online world and customers expect to be able to transact online.”
To learn more about Car Care Plan’s products, visit www.carcareplan.co.uk.
Making extended warranty purchases simple for your customers
Car Care Plan is one of the only companies providing a full online service for the sale of extended warranties. More than 70% of their extended warranty sales now take place online, either through a retailer’s website or a branded platform, as customers increasingly expect to be able to make purchases from their phones, tablets, laptops and desktop computers.
Paul said: “Making it easier for customers to transact should be a core aim for all dealers and letting customers renew their warranty cover online is a great way for retailers to extend their relationship with consumers. Car owners can extend warranty cover at their own convenience, can select a payment plan that fits their needs and can do all of this without tying up dealer staff in the showroom.”
The key to online sales is a smooth experience, Paul added. “That means a website that’s easy to navigate, products that are easy to understand and pricing that’s transparent and without any hidden surprises. Dealers also need to work with their warranty partner to make sure the offer is compliant and in line with Financial Conduct Authority rules on selling.”
To learn more about digital technology for dealerships, download our free eBook.
Want to keep your customers coming back?
Extended warranty sales benefit retailers and manufacturers with higher servicing retention, research from Trend Tracker found. It showed a warranty was more likely to result in customers using their franchised dealer – over 60% of those with sub four year old vehicles who hadn’t yet serviced their vehicles said they would return to where they bought it.
With so many ways to contact customers these days – email, text messaging and social media, alongside the traditional phone call and mail – being able to direct customers to extend their warranties online can only result in greater sales. Many manufacturers are already taking advantage of this trend, including Mazda, Land Rover, Audi, Renault and Vauxhall.
Retailers who don’t adapt to the increasingly digital sales landscape may start to see more technologically advanced rivals streaking ahead with a growing stream of returning customers.
To learn more about extended warranty sales, download our free eBook.