sales training: retail finance and extended warranties
Confidence and product knowledge are key to selling
finance and warranties This month, in his regular column for IER, Paul Laville of T21 Training has some great pointers for you when it comes to selling retail finance and extended warranties.
etail finance and extended warranty are both excellent tools that can
help you enable sales and add value to your customer. Finance aids customers to purchase the things they want today and extended warranty covers them for having to pay for repairs or replacement outside the manufacturer’s warranty period. Think about this last one for a moment: Your customer buys a new super-duper TV at £2,000 and eighteen months later it develops a fault. The manufacturer will charge to assess and repair it or it’ll cost your customer another £2,000 to replace it with a new one. The cost of that TV is now £4,000. Compare that to the price of an extended warranty. Both, to me, are no-brainers for persuading
customers to buy from you, particularly higher value transactions at full margin. So both are valuable to the business. However, it can be difficult to bring either
into the sales conversation, particularly if it’s all new to you. So here are five great tips to help you sell more warranty and finance.
Finance and warranties
are no-brainers for persuading customers to buy from you
1. Know your product By product I mean your finance product and your warranty. With finance there are likely to be many options available, and when you’re talking your customer through them you need to make them aware of these. When it comes to extended warranty, you need to know exactly what is covered and in what circumstances. Take
September 2019 Talking to customers
about finance and warranties will massively increase your chances of selling them
the time to know your finance and warranty products and become the expert. It’s not difficult to read up on them and the provider themselves may offer training. If they do, then take it. If you’re a member of Retra then you can enrol on their IER Award Winning e-learning platform. Give them a call or give me a call to find out how you can do that.
2. Don’t make assumptions It’s easy to think that your customer won’t be accepted for credit, so what’s the point of trying? It’s easy to avoid finance altogether if customers tell you they’ll be paying on their credit card. It’s even easier to think that the customer you’re talking to will never want a warranty. But the fact is you’ll never know for sure unless you present it to them. Even those who say they’ll pay on credit card, have they actually considered retail finance? If the interest is lower than their credt card then it might offer them a lower monthly repayment. So if you talk to every customer about extended warranty and retail finance, rather than just a select few based on your assumptions, you will massively increase your chances of selling them.
3. Timing Quite often I hear sellers waiting too long to mention finance or warranty. If the customer is at the till getting ready to pay then it’s too late. You need to bring these things into the conversation early and give the customer time to consider it, ask questions, raise concerns, be reassured and make a decision.
4. Sell the benefits Selling warranty in particular is rife with cliché. How often do you hear people say (or how often do you say yourself) the words “Peace of mind” when it comes to warranty? What does it really mean to that particular customer in reference to the thing they are buying right now? My advice is don’t just spin out cliches. Instead, spell out exactly what “peace of mind” means.
gives customers additional value by removing the stress and worry that can be associated with product breakdowns
5. Be confident The more warranty and finance you sell the more confident you’ll become. Confidence pays off because the customer will pick up on it, it’ll help them feel reassured that they’re making the right decision. But have confidence in the products themselves, particularly the extended warranty. Extended warranty gives customers additional value by removing the stress and worry that can be associated with product breakdowns. It also allows you to place yourself at the centre of their aftersales care and keep your relationship with them strong, because if anything does go wrong they can pick it up with you and you can deal with it, and if you do a good job of handling it then you can be assured that that customer will more likely stick with you than take their business elsewhere next time they want to buy a new expensive TV and home cinema package.
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