How to sell extended warranties effectively?

Summary: Despite having auto warranty leads, many extended warranty providers find it difficult to sell their products. This article will tell you what you need to do to sell extended warranties effectively.

Selling extended warranties effectively can be quite a challenge especially when customers are of the opinion that the cars that they buy will never break down. If making them understand the need for extended warranty is one thing, the other thing will be to overcome their objections.

Capturing auto warranty leads or buying them from lead generation companies can give an opportunity for extended warranty providers to get in touch with their prospects. However, a lot depends on the kind of efforts that they put in to convert these prospects into their customers. This is where these tips can come in handy:

Educate prospects about extended warranty

Most people will say ‘No’ to extended warranties. They have no plans of purchasing such an expensive product after making one of the biggest purchases of their lives. So the first challenge you will face is lack of awareness about the need for extended warranties. Creating this awareness and making your prospects understand why they need to buy an extended warranty is the first step you need to take while selling extended warranties.

Most car buyers are not aware of the complexities involved in the components of the modern cars available in today’s market. This is one thing that people who sell extended auto warranties should understand. Today’s cars are not like those that came in the past with simple and repairable parts. The components are so complex that they can’t be repaired; they have to be replaced. This is one thing you will have to tell your prospects.

Ask your prospects if they would purchase a car that has no factory warranty. They will most probably say ‘No.’ So now ask them when they would expect problems to occur with their car – in the first four years of purchase or after that? Help them understand how your product would help them in those most critical times.

If you would like to go a few miles extra you could ask them to estimate when their car will be out of warranty, depending on how many miles they drive per year. Once they figure this out they will be in a better position to buy an extended warranty.

If the prospects you talk to aren’t already covered by an insurance plan, you have all the chance that you need to convert them into your customers. Go for it. Ask them questions about what they would do if they ever faced a breakdown of their car. Tell them how much they may have to spend if they had to replace certain parts of their cars that are prone to damages. Make sure they understand how an extended warranty can help them.

Timing is everything

Offering your prospects a great deal on your extended warranty plan is of no use if they are not at the till. You will have to make sure they are ready to go for an extended warranty. You have to make them comfortable with the idea of buying an extended warranty by allowing them enough time to understand the benefits of the plan. Springing on your prospects suddenly is not advisable unless you know they are receptive enough to accept what you have on offer. Start a conversation with your prospect and find a way to bring in your product into that conversation. Generate interest about the product and then try pitching it.

Sell the benefits

Selling an extended warranty is just like selling any other boxed product from the shelf. Like the other products on your shop floor, extended warranty also comes with its own sets of features and benefits. These are what you sell to your customers and how do you do that? -  By linking these benefits to the needs of your customers. While doing so, if they have any queries or objections you have to put in the time and efforts to manage them, if you want to close the deal successfully.

While dealing with customer objectives is a major part of a salesman’s job, it would be better not to give a chance for those objections to come up. For this, you may have to give them complete information about the product that you want them to buy. Tell them what is covered and what is not. Help them understand how to raise their claims and how they are processed. Once you know you have a positive response from your prospect, ask for the sale.

There was a time when there were a lot of mixed views about the worth of extended warranties. However, the auto warranties that come today are a lot better. They are scrutinized closely before they are made available in the market. The Financial Conduct Authority makes sure the consumers are protected against mis-sold and fraudulent policies. Reputable warranty providers are a lot more clear and transparent in their transactions and deliver on their promises as expected to.

Today’s warranty providers understand the insurance market well. They know what other plans cover. They make sure their products provide coverage for the parts and systems that haven’t been protected. It is a lot easier to sell a product that provides so much of value to the customers. Nevertheless, it is very important that the customers understand the value that they get, before the product is sold to them.

When it comes to selling extended warranties to the prospects whose details you have obtained through auto warranty live transfer leads, it is important that you follow the right approach. Educate the prospects about the product and make them feel the need for it. Get your timing right. Focus on selling the benefits of extended warranty.