Over the past year AM, in conjunction with QBE Insurance Europe, has been researching and discussing the merits of extended warranty and its role.
We have spent much time debating the value warranties provide, the multi point income streams they generate, the need for provision of proactive training and not least the products themselves.
But not a lot has changed over the past two decades. Fundamentally we still have the same type of products, the dealer networks, in general, still adopt the same processes for selling. The question we believe you need to be asking yourselves now is simple. Is what you were doing almost 20 years ago the right thing to be doing now?
Consumer retention is pivotal to our future balance sheets and as a consequence of this now more than ever before is the time to embrace change.
Innovation is the key to our long-term future. In the current climate of the ever increasing demands of our consumer base now is the time for us to search out new ways of providing product types that firstly consumers see value in and secondly lock in the consumers on a long term profitable basis.
New and innovative products are out there, products such as service and maintenance plans with integrated monthly renewable warranty that offers customers the opportunity to budget for their servicing requirements monthly with the enhanced peace of mind of having warranty cover for the precise duration of vehicle ownership, all for a manageable monthly fee.
Consumer retention is king. Innovation will provide us with the tools to enhance our retention. Now is the time to embrace change.
For further information regarding these new products contact Simon Fletcher on sfletcher@ qbe-europe.com.