Scheme brings 20% lift
August 24th, 2009 by Richard Aucock
RAC Warranty reports a one-fifth increase in profitable car warranty sales, after introducing a new scheme.
The ‘Critical Success Factors’ programme was launched last year. Since then, says the firm, car dealers have been able to maximise warranty sales.
It’s proven so successful, says RAC Warranty’s Ian Simpson, because it’s easy to understand and implement.
‘There is no wizardry – it is simply designed to ensure that warranty sales are approached in a structured and committed fashion.’
It consists of a five-point plan, which requires:
• Staff have positive attitude towards the sale of warranty
• Staff selling warranties have proper understanding of the products
• There is an incentive programme in place
• Controls are in place to check warranties offered to customers at correct times
• Commitment is given from dealer management
Simpson reckons the last point in particular is key to upping warranty sales – and, thus, improving aftersales revenue.
Simple misunderstanding by poorly-trained sales staff accounts for the rest of the potential losses.
‘As we have gradually rolled Critical Success Factors out across our dealers, we have typically seen an uplift in sales of anything from 15-25 percent.’
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Tags: aftersales, rac warranty