A Serving Culture

By Keith Meier

A couple of weeks ago, I joined a group of Assurant Solutions EPS team members to spend a day working for one of my favorite causes, Habitat for Humanity. Every year the team from the Assurant Atlanta office builds a home for a deserving family in the community. Not only is it a great way for our team to connect with what’s really important in life—helping and serving others—it was a fantastic opportunity for me to see our team shine in such a giving and fruitful environment, which truly personifies our enduring values.

Without words ever needing to be said, I always knew our team would work hard from beginning to end and would be able to accomplish much more than the construction leaders believe could be done in one day at the worksite; and that day was no exception. The original plan was to have the whole house insulated by end of day. The team not only completed the insulation, but got the siding on the house finished too!

I get to see our team in action on a daily basis with a passion to serve our clients and their customers. They are always looking for ways to help construct more for our clients than what’s expected. This is a group that genuinely cares deeply about delivering a quality customer experience and helping clients exceed their goals.

So please let us know what we can help build for you.

We’re ready to serve!

More Opportunities to Sell VSCs in 2012

by Joe Erdeman

Pent-up consumer demand for new cars sure is making itself known. Combined with rising fuel prices leading to increased purchases of more fuel-efficient vehicles, auto sales are up – maybe way up. While no one knows if this spike is permanent, the market looks as though it will remain strong for the near future.

The increase in auto sales means greater revenue opportunities through the sale of vehicle service contracts (VSCs) and other ancillary products and services. According to a consumer study we completed recently, there is a high level of awareness among recent vehicle purchasers about VSCs. The following chart summarizes some of the research:

Allow me to highlight two key points:

• 92% of those surveyed were aware of VSCs, but only 37% chose to purchase one for their new vehicle. When asked why they chose not to purchase a VSC, the top reason was that they felt they were “already covered.”  This indicates a value gap in the minds of consumers when it comes to VSCs. 

• 8% of those surveyed were not even aware of VSCs, which means that either one wasn’t offered or the offer didn’t resonate with the consumer. Every time a consumer isn’t offered a VSC, or the offer is poorly presented, is a lost revenue opportunity.  With more opportunities to reach consumers via social media, email and various automotive blogs and websites, we need to make sure everyone is aware and that their perception is positive. 

How can we effectively share the message of the value of VSCs to the 55% of consumers that declined to purchase one? How are you going to ensure you make the offer 100% of the time?
I would love to talk ideas with you.

Top 5 Places to Offer Service Contracts Online

by Stacey Vogler

One of the most interesting parts of my job involves studying consumer behavior, with a bent toward how they shop for extended service contracts (ESCs). We use this proprietary research in our collaborations with our clients. This insight helps our customers determine where, when and how to offer service contracts to the consumer in order to positively impact customer loyalty and drive revenue growth.

Last week we conducted several consumer focus groups in Atlanta around the topic of online vs. offline shopping behaviors. If you’ve ever been part of a focus group, you know that the information gathered can both enlighten you to new ideas and confirm pre-existing notions.

Consumers Typically Don’t Research ESCs Prior to POS

We’ll share some of the results of these focus groups in the coming weeks and months, but one thing that stood out in particular to me is how consumers don’t include the ESC in their online research process. Why aren’t they researching ESCs prior to point-of-sale? We’ll be addressing this question and many others through our research.

I’m reminded of the “Top 5 Places to Offer Service Contracts Online” and the fact that two of the top five places online retailers should offer service contracts come prior to the purchase decision. In case you haven’t seen it, here’s the list:

Top 5 Places to Offer Service Contracts Online

• Within product description pages (before purchase decision)
• As a “pop up” during the shopping experience (before purchase decision)
• Once a product is added to the cart (purchase decided, not finalized)
• On the receipt page before the order is finalized (purchase decided, not finalized)
• In the confirmation e-mail sent to the consumer (purchase finalized)

 Bringing ESCs to the consumer’s attention earlier in the process gives them more time to consider the value of the service contract. Consumers want to make smart decisions, and educating them before the “close” helps them feel prepared and more comfortable – and more likely to say “Yes” to an ESC.

Make the Offer to Every Customer, Every Time

It’s a longstanding best practice to encourage a store associate to make the offer to every single customer, every time. But execution can be spotty because some sales are unaided and other times the associate just doesn’t ask. With online purchases, however, you have more control of what the consumer sees on your site and can reap the benefits of making the ESC offer 100% of the time.

Are you hitting all 5 of the top places? If not, consider adding another “touch point” early in the buying experience. You may find that consumers are more comfortable protecting their purchases. Want to know more? Give me a call, shoot me an e-mail or connect with me on LinkedIn.

The Harvard Business Review is Right about Extended Warranties

by Stacey Vogler

You can feel good about selling ESCs. But don’t take my word for it. Take the word of a leading economist who writes for the Harvard Business Review.  In an article published last Friday, economist Rafi Mohammed is clear that skeptical consumer advocates like Consumer Reports are wrong when they warn against extended warranties. Mohammed, who describes himself as “thrifty,” lists a number of reasons why extended warranties are often a good deal for consumers.

Extended warranties can be a great value.

As the article points out, an extended warranty means your customers don’t have to spend valuable time researching and identifying a servicer to repair their purchase. It’s all handled for them, quickly and hassle-free. And because servicers have an incentive to fix the problem efficiently, consumers don’t have to worry about price gouging.

The article also lists a number of other reasons why extended warranties can be a great value, which you can read here. Bottom line? You can feel good about selling protection products to your customers. These days there are a wide variety of service plan products, options and bundles. Our research, born out by this article, shows that early adopters are likely to be interested in additional protection, and factor in this purchase before the point of sale. Far from being coerced by a hard sell, it’s often the smartest, thriftiest shoppers that opt for service plans.

Value-added options enhance brand loyalty.

You may have heard me speak in the past about the link between extended service plans and brand loyalty. It’s great to see the Harvard Business Review recognize that link. In our experience, when consumers find a brand that offers value-added options they find helpful, that can be an important driver in keeping that customer coming back, year after year. One thing the author didn’t mention is that a positive relationship created between the consumer and the customer care team representing your brand is a great way to keep your products top of mind. Our data is clear that extended warranties are a driver for customer loyalty. Download our whitepaper here.

I encourage you to read the article and take action in three simple ways. First, if you appreciate Mohammed’s points, let him know by adding a comment at the bottom of the article. Second, share this article internally at your organization (as I’ve done at Assurant Solutions) to help others understand the true value of ESCs. Finally, let me know your thoughts on the real value of ESCs to your customers, and how you share that message with them.