By Michael Blumberg, president and CEO, Blumberg Advisory Group, www.blumberg-advisor.com
Best practices for selling extended warranty and/or extended service programs are shared.
Given the enormous attention that field service organizations (FSOs) are placing on growing topline service revenue, Blumberg Advisory Group and Giuntini and Company recently partnered to conduct a study among service executives about best practices involved in selling extended warranty and/or extended service programs. A key finding of the survey is that the configuration of extended warranty and extended service programs has a tremendous impact on the sales of these programs. In other words, the length of coverage, level of customization, processes engaged, resources employed in delivering the warranty, and entitlement levels offered play a key role in driving sales. These findings suggest that the more distinctions a company can make about its service program, as defined through the configuration, the more effective the company will be at getting customers to purchase it.