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New strategies needed for warranties and service plans, says The Warranty Group

Time 5 years ago

NEW strategies are needed to sell warranties and service plans, as more and more used car sales happen entirely online, according to The Warranty Group.

The company – one of the world’s premier global providers of warranty solutions and related benefits – says that it is working with a number of car portals, supermarkets, franchises and independent dealers to learn about which approaches work best in which circumstances.

Serkan Obuz, business development director, explained: ‘Car sales are moving online at a rapid pace and dealers are sometimes struggling to keep up with the implications for their sales model.

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‘The most switched-on know that they have to identify ways to retail products such as service plans and warranties as part of the online customer journey and are trying out a range of strategies.

‘It is a question of working out how to integrate these products into the customer’s online journey towards buying a car. If not, dealers are both losing potential profits and customer retention, as well as failing to present a complete used car proposition to buyers.’

Obuz said that finding the best way and the right time to present information about products, pricing and benefits is crucial.

He added: ‘Dealers are using everything from product information videos to live chat, from interactive product descriptions to simple FAQs. What we are finding is that all of these probably will have a place in the future, depending on the dealer, the customer and the product.

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‘We see our role in this process as very similar to the support that we have offered to dealers over showroom sales for decades – that we are able to provide authoritative and effective best practice ideas that enable dealers to maximise their warranty and service plan sales.’

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