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by Mark Leidlein, Director of Business Development for Advanced Customer Services (ACS) - June 22, 2011

Call Centers Increase Extended Warranty Sales by Mark Leidlein, Director of Business Development for Advanced Customer Services (ACS)

Many retailers have been successful selling extended service plans (ESP) at point-of-sale providing a nice source of additional income for their operations. But if they aren’t following up with customers that don’t purchase a plan during the initial sale or at renewal of an existing plan, they are missing out on a significant source of additional revenue.

A call center has distinct advantages for increasing the sale of ESPs. The first issue retailers must deal with is sales staff that do not promote ESPs. This is quite common with seasonal and new help. Depending on training and management direction, ESP sales may not be a priority for associates.

Call center staff are dedicated to the sale of ESPs for their clients. They can also target the message for just the right time to the customer. Customers become more motivated to buy as they near the end of the factory warranty or a short term ESP. A good program will offer a staged communication plan that may include an early email followed by a direct mail piece followed by an out-bound telemarketing call. We have found that in many cases the email and letter is more likely to generate an in-bound call from the prospect rather than ordering online or sending the invoice back as they feel more comfort talking to someone on the phone.

Often the call center CSR will up-sell the ESP plan and can work the prospect through questions about the best package if they have purchased multiple items. Having a call center also lets the retailer scale their sales effort for seasonal or promotional periods without the worries of hiring and managing additional staff.

Retailers looking to maximize their revenue from ESP sales should explore the advantages of partnering with a call center specializing in ESP sales. This is just one of many ways a third party call center can help support and expand your enterprise. Whether its marketing, sales or customer service, a third party call center can help you focus on the core elements of your business and more easily adapt to changes in demand.