According to consumers, the most important part of their experience with your brand comes after they purchase the product. It’s one thing for a consumer to purchase a product and bring it home. It’s quite another for that consumer to continue to use and love that product for years afterward. By ensuring that your customers enjoy their product long after the sale, you make it more likely for them to return and choose your brand in the future – the customer that has a positive ownership experience will remember, and will want to experience that again.

Having a window into your customers’ post-purchase experience is an extremely effective way to evaluate your product and service offering, and make the necessary adjustments that will build customer loyalty. That’s where we come in. We don’t just help you offer the right protection products and services. We don’t just help you to communicate the importance of protection to your customers. We go beyond the sale by ensuring that your customers’ entire experience is positive, particularly the part they value the most – the post-purchase experience.

In its simplest form, we do this by helping your customers when something goes wrong with the product they purchased. But our assistance doesn’t stop there. We work with our clients to provide education about which products are failing and why, helping them make better inventory and pricing decisions. We help our clients reach out-of-warranty customers who don’t have a service contract to ensure they get the most out of their products long after the purchase. And we make it easy for our client’s customers to access our services however they want – be it phone, chat, web or mobile.

At Assurant, we begin with the end in mind and we’re not done when the customer makes the purchase. We’re not done when the customer’s service contract is up. Our work never stops. The end we want is a happy customer who returns to you again and again, year after year, and we’ve built our extended protection business around that goal. If you’re not seeing the entire customer experience, talk to us. Assurant Solutions can help shine some light into your customer’s world.

By Joe Erdeman

In 2012, online sales hit $226 billion, up 16 percent from the previous year. The rapid increase in online shopping has raised a number of questions, including significant ones regarding state and local taxation of online sales. In May, the US Senate passed the Marketplace Fairness Act, which proposes to level the playing field for the taxation of online purchases.

Today, retailers determine necessary taxation based on a 1992 Supreme Court ruling that dictates that a state cannot force retailers to collect sales tax unless they have a physical presence in the state. Given the push-pull taking place between bricks-and-mortar and online shopping, it’s easy to see how the ability of online retailers to provide tax-free purchases to customers could be an advantage over bricks-and-mortar competitors. The Marketplace Fairness Act would require retailers with over $1 million in sales to collect state and local taxes for online purchases, eliminating one potential advantage in the battle for wallet-share.

With the Marketplace Fairness Act potentially eliminating a key advantage for e-tailers, both online and bricks-and-mortar retailers need to develop new ideas about how to differentiate themselves to consumers. The best place to start is the customer experience.

Your customer’s experience goes so much further than the moment of purchase, and everything that leads up to it. Yet most companies focus all of their efforts on the pre-purchase and point-of-sale. The best way to differentiate your brand to customers is to deliver an exceptional experience after the sale. Delivery and installation, tech support, service and repair all represent opportunities to reconnect with customers post-purchase and give them a reason to remain loyal to your brand. If you can add value to the customer experience after the purchase has been made, you’re ahead of the curve in standing out from your competitors.

And when you focus on the entire customer experience – pre-purchase, point-of-sale and post-purchase – you uncover new ways to build loyalty, gain efficiencies, improve performance and grow revenue. When you choose Assurant Solutions as your protection partner, you are choosing a partner that is focused on ensuring a world-class experience for your customers for the life of their product and a partner that shines new light onto the entire customer experience. This enables you to make better, smarter and more enlightened decisions that will build loyalty and drive growth.

In this age of shrinking profit margins and growing customer expectations, the best differentiator for any retailer – online or off – is to deliver a positive experience to your customer for the life of their product. And that’s what Assurant Solutions is all about.

Within our corporate community at Assurant, we have a longstanding commitment to charitable organizations, and in particular, programs that benefit children. It is with great joy and excitement that we have recently begun to work with Jewelers for Children, the jewelry industry’s charitable organization. The details are available by clicking here.

Without a doubt, we are a part of the industries we serve. When we embark on a relationship with a client, we understand that we have the ability to play a much larger role than simply extended warranty provider; our corporate culture of giving at Assurant can make an even greater impact by assisting our clients in their giving efforts as well.

The knowledge that Assurant exists as just one part of a much larger community is reflective of one of our premier core values, “Acting as a good neighbor within our communities”. This dedication to giving doesn’t cease at our office doors, but instead spills over into the incredible efforts of our employees. Assurant actively encourages employees to volunteer their time to the charities of their choice by providing paid time off to volunteer for charitable causes. Additionally, the Assurant Employee Matching Gifts Program matches employee’s charitable donations to qualifying charitable organizations. From there, we continue to enhance our employees’ great works through the charitable giving programs of the Assurant Foundation. In 2012, the Assurant Foundation and our employees provided over $4.2 million through charitable grants, matching gifts, and other giving.

At Assurant, we are committed to giving back to the communities we serve, through our employees, our clients, and their customers.

2013 is proving to be the year of the new product launch in consumer electronics. New gaming systems, innovative Smartphones, 4K TV (Ultra HD), connected cars – the list is growing and will surely be enticing to consumers as each of these new products enter the marketplace. This is great news for consumers, retailers and manufacturers, but it also brings risk – the risk of the unknown.

For consumers, especially early adopters, how can they be sure the product will work as promised?

For retailers and manufacturers, the questions start piling up quickly. How can they entice consumers to take the risk? How can they be sure their protection plans are priced appropriately? How can they manage the risks of defects or other problems? And will their extended protection partner be able to help them navigate the process successfully?

The truth is that with new technology you really need a protection partner that is a proven underwriting expert and has strong financial backing to properly manage risk. Whether retailers or OEMs, our clients benefit from the decades of experience Assurant Solutions has in protecting consumer electronics. They benefit from our actuarial database that includes 80 million active ESC contracts and the largest actuarial team in the industry. And they benefit from knowing that we are backed by the financial power of a 120-year old Fortune 500 company with more than $28 billion in assets.

Simply put, we’re better able to help you mitigate the risk related to new technology than anyone else in the industry, and we’re positioned to weather any storm that comes along.

By offering your customers a protection plan on new technology, they are more comfortable making the purchase decision. By working with a proven partner, you can trust that the post-purchase experience is in good hands and you’re not going to be blindsided by risks you didn’t see coming.

This is the year of the new product launch, and it might also be the year to consider whether or not your current partner has the experience, expertise and stability to properly support your protection program. Not sure what to do? Talk to us. After all, we’re the protection experts.

Having recently returned to the US from the UK, I’d like to extend a hearty “Cheers!” to the Extended View readership, and introduce myself as the newest contributor to ExtendedView.com. My previous role in England was that of Chief Marketing Officer for Assurant’s European business, and I’ve now transitioned into the role of Senior Vice President, Extended Protection Solutions here in Atlanta. Though our family will miss the wonderful people that we met across the pond, we are grateful to be back home, and I’m looking forward to an exciting future leading our EPS business.

Many of you already know me from my previous roles with Assurant. For the last 15 years I have served the company and our clients in a variety of capacities, and during that time I’ve learned the importance of delivering exceptional service to our clients and their customers. It is my number one priority at Assurant Solutions to take care of our clients, and it’s this passion for delivering “above and beyond” that guides my leadership decisions.

For the team at Assurant, our focus on providing exceptional client service permeates the entire organization. As many of you know, Assurant Solutions was recognized at this year’s Stevie Awards for our world-class customer service, this time pertaining to our outstanding call center practices. We are 100% committed to our clients, and we practice the same level of commitment with our clients’ customers. This means that every time your customer reaches out to us, we provide them with responsive care – 24 hours a day, 7 days a week.

We are here to represent you after the purchase, and we recognize the impact our service delivery has on the customer experience and your brand. Whether it’s a VSC customer calling about a repair, an ESC customer having trouble with an appliance or an Assurant Expert Services customer calling for tech support on their laptop, our goal is to exceed expectations every time – both theirs and yours.

Moving forward I hope to provide Extended View with insight into consumer behavior, industry trends, and Assurant Solutions’ latest news, from a client-focused perspective. I’m excited to have joined Joe and Stacey on this team and look forward to contributing to the valuable content provided here on ExtendedView.com.

After several lean years in the auto industry, sales numbers on new vehicles have recently begun increasing by the millions. In fact, a Washington Post blog recently stated that the national economy had been “saved” last year by strong auto sales. 2012 saw sales of 14.5 million new vehicles, up 13% from the year prior. In 2013, new vehicle sales are expected to reach 15.3 million, nearly a million more than 2012, and in 2014 sales are expected to rise by yet another million. With a sunny forecast such as this, dealers need to maximize opportunities to increase revenue in finance, insurance and service business at each sale, and TPAs need to be sure they are offering their agent and dealer customers the tools and products that will lead to dealer success.

There are two main factors driving the increase in new vehicle sales. First, after years of job losses, restricted access to credit, and general cuts in household expenditure, many consumers are once again in a position to purchase. New models with innovative, hi-tech features are even more enticing after having spent several years dreaming about purchasing a new vehicle and being unable to pull the trigger. The second reason for increased new vehicle sales has to do with the existing vehicles consumers already own. The average car in 2012 was over 11 years old, compared to 10.6 years in 2010 and 9 years in 2002. Though some shoppers are being enticed into dealerships by the allure of new models, the second reason for the predicted increase in new vehicle sales has to do with existing vehicles aging and needing to be replaced.

Such purchase motivations present unique selling points around VSCs. Consumers returning to the auto market after years of driving an older vehicle may not be aware of the high cost to repair the hi-tech components now considered “standard” in many vehicles traditionally. Assurant Enhanced Systems Protection is the first program to provide standalone protection for hi-tech components. Many consumers will also be entering into their new vehicle purchase after years spent paying out-of-pocket for repairs to extend the life of an older vehicle. For this type of consumer, taking advantage of a Vehicle Service Contract is a way to increase their comfort in saying yes to a new vehicle purchase.

As we’ve noted in a previous blog, though 80% of Americans research vehicles online prior to purchase, consumers typically do not include VCS options in their research. Providing education online about protection options is an excellent way to introduce the VSC offer to customers within a relaxed setting, giving them time to consider the benefits before reaching the dealership. Familiarize shoppers with the value of purchasing a protection plan, as well as the difference between VSC’s and OEM warranties. Making a concerted, focused effort at every sale to educate and sell customers on a VSC is the fastest way to make the most of the exciting sales predictions in the years to come.

One of the foremost topics at the National Automobile Dealers Association (NADA) convention last month was the transition of the industry[1] toward information transparency online. J.D. Power and associates found that[2] more than 80% of U.S. new car buyers use the internet to research their purchase prior to ever stepping foot in a dealership. Today’s automotive consumer expects to be provided with a wealth of information and given the opportunity to compare models and manufacturers at the click of a mouse. Automotive manufacturers and dealers are now navigating an online landscape of information transparency, and making adjustments in their sales approach to meet current day consumer needs.

Given that automotive consumers now expect to be supplied online with accurate information about their potential vehicle purchase, there is an enormous opportunity to also educate them on the value of a VSC during their research period. Interestingly, our proprietary research has shown that[3] consumers typically do not include service contract information in their research. Familiarizing customers with the value of purchasing a VSC, and the difference between VSCs and OEM warranties, means that they arrive at the dealership with an added level of comfort in saying “yes” to the VSC purchase. The web offers a wonderful opportunity to introduce customers to the VSC in a relaxed setting. With the freedom to take their time and do more research, they may be better able to consider the benefits of a VSC than in the higher pressure environment of the F&I office.

Dealers and manufacturers must ensure that the transition between the web and the dealer is seamless, however. This means that the VSC information provided online needs to be consistent with what the customer is presented at the dealership. Creating a seamless transition from web to dealer is critical in maintaining the trust of online-research consumers.

The opportunity to educate your customers online about their VSC options is one that can be used by both dealers and manufacturers alike. Third party administrators could also benefit from providing this content to their dealers as a “value add” to help increase sales. If you find that your online resources are lacking information about VSCs, we can help. Reach out to us and we will assist you in providing your customers with the information they need to consider during the research process in order to best protect their vehicle purchase.

In a recent blog, we discussed Assurant Solutions’ unique vantage point, given our work with clients and customers spanning several different industries and product categories; whether consumer electronics, major appliances, manufacturing, retail, automotive or fine jewelry. We pay close attention to the initiatives and processes that produce success in one industry and apply this knowledge to the other industries within which we operate. This sharing of insights and best practices has led to some of our most exciting programs to date, most recently the launch of Assurant Enhanced Systems Protection. Crossing the industry divide to share information and insight is a key factor in differentiating and growing our clients’ protection programs and helping our clients continue to meet the evolving protection needs of their customers.

In the coming months we will feature a few of Assurant’s in-house experts, and discuss the best practices in their areas of expertise they may be applicable to your business. In the first of the series, I recently sat down with Suzanne Adams. Suzanne works with some of Assurant’s most important fine jewelry clients, and offers unique insight into this industry – and how its best practices can translate to others.

Q: Jewelry tends to have a high attachment rate of service plans. Why is that?

A: Jewelry sales associates are typically long-term, career employees and are often commission-based. They have a vested interest in not only selling a piece of jewelry or luxury timepiece today, but in getting that customer to come back again and again. Care plans enhance the overall experience – the sales experience, the post-sales experience and service incidents. Sales associates know that selling a care plan generates loyalty, creates a “clientelling” opportunity and helps build the long-term relationship that will drive future sales – so they are motivated to sell the plans.

Q: What commonalities do you see across the most successful fine jewelry protection programs?

A: Management commitment is by far the most important key to success. When top leadership makes the ESC program a priority – and continues to emphasize its importance over time – the program is much more likely to grow. When the management commitment is not there, or is not consistently emphasized, programs can become stagnant.

The other key to success is setting goals and tracking results. Holding everyone accountable elevates awareness, drives competition and produces long-term growth. With my clients, we talk regularly about which stores are hitting their numbers and which are not. This drives conversations with regional managers to store managers and store managers to sales staff. No one wants to be called out for not meeting their goals. It really pushes each person to do their part.

Q: What could other industries learn about ESC sales from the fine jewelry business?

A: Jewelry can be a very emotional purchase, which good sales people incorporate into their selling process. They romanticize it using emotions and sentimentality. The service plans are part of that, because jewelry takes on value beyond just the cost – your engagement ring is priceless. The watch you give your son upon graduation is special. Customers want fine jewelry to last a lifetime, and maybe even pass it on to future generations. Care plans help protect these pieces, and sales people use that.

Other industries should try to cultivate a long-term relationship sales attitude to keep customers coming back, and find emotional ties to help close the ESC sale. Pay more attention to how to long-term manage the relationship and romance the consumer.

New cars seem to have more in common with computers than they do with the cars from my youth. The proliferation of technology, especially advancements in safety and entertainment technology, have made today’s cars and trucks safer and more fun. They’ve also made these vehicles more complex and more expensive to fix.

Consumers appreciate the hi-tech components that improve the driving experience, but they don’t fully understand whether their warranties or a vehicle service contract cover these components. They also underestimate the expense of repairing them. Our proprietary consumer research reveals the following information around consumers and vehicle hi-tech components:

• 75% of drivers have at least one hi-tech component in their primary vehicle.
• 48% of drivers have two or more hi-tech components.
• 44% of drivers are unsure whether hi-tech components are covered by their manufacturer.
• 50% of drivers believe the cost to repair a single hi-tech component is between $250 – $750, when costs are typically $1000 or more.

The fact is that most vehicle service contracts do not specifically address a significant number of factory-installed hi-tech components such as Bluetooth systems, entertainment technology and rearview cameras.

In order to fill this coverage gap, Assurant Solutions introduced a new product at NADA 2013 in Orlando. Assurant Enhanced Systems Protection enables Assurant clients to offer their customers breakdown coverage on hi-tech components that typically are not covered by a standard vehicle service contract. Our clients can now offer a customized version of Enhanced Systems Protection as either an in-boarded option on a VSC or – for the first time in the industry – as a standalone offering.

Enhanced Systems Protection offers enhanced protection and peace-of-mind to consumers. The solution specifically lists which components are covered, eliminating guesswork and misinterpretation by the consumer, dealer or administrator. Through this standalone offering, consumers can choose the level of coverage that is most appropriate for their needs.

For more information on this innovative new solution, download the Enhanced Systems Protection fact sheet. Then give us a call to find out more.

At Assurant Solutions, we have the unique privilege of working closely with clients in a variety of industries, including automotive, consumer electronics, major appliances, jewelry, retail, manufacturing and finance. We pride ourselves on delivering unique insights into our clients’ programs and customer behavior, and taking action on these insights to improve performance and the customer experience. Our insights don’t stop there.

One of the advantages of our breadth of clientele is our ability to share and apply best practices from one industry to another. We challenge ourselves to think innovatively and use the insight gained from one industry to discover how it may benefit our clients in another. This concept is top of mind for me because of a recent article about a partnership between WellStar and General Motors – two very different companies that came together to learn, share and improve their businesses.

On first glance, it may seem strange for a healthcare organization and an automobile manufacturer to share best practices. But these two companies found a surprising number of business and process improvements resulted from the collaboration and sharing of ideas.

This doesn’t surprise me, since we’ve been operating this way since the beginning. After decades of interaction with clients involved in different sectors, Assurant Solutions has become adept at recognizing best practices around the administration, underwriting, marketing and customer service aspects of service contracts, and have proactively applied this knowledge across industries.

We ask ourselves: What have we learned about how consumers purchase extended service contracts (ESC), and how can we apply this knowledge to vehicle service contract (VSC) sales? What insights can we apply to manufacturers that we’ve learned by working with retailers? The answers to these questions can be found in our innovative product offerings, call center processes, marketing efforts and many other points along the service contract continuum. And our clients and their customers reap the rewards.

For example, we’ll be launching a new product for our vehicle service contract clients at NADA 2013 called Assurant Enhanced Systems Protection. This unique protection plan specifically lists the high-tech components that are covered, leaving no room for assumptions to be made by the consumer or administrator.  These components are such an important part of today’s automobiles and contribute to our “connected” lifestyle. A typical VSC excludes components such as Bluetooth systems and entertainment technology. The Enhanced Systems Protection solution enables our clients to either include protection for those components as an “add on” to a VSC or, to sell the Enhanced Systems Protection package “a la carte” with no VSC required – an industry first.

Our experience offering protection for consumer electronics, mobile devices and other gadgets along with our experience protecting automobiles meet perfectly in this one-of-a-kind solution. Look for more details on our new Enhanced Systems Protection product next week at NADA, online at AssurantSolutions.com and right here on ExtendedView.com.

At Assurant Solutions we’re always digging deeper to support our clients, enabling them to offer their customers peace-of-mind on the things they value most.