Warrantech Featured In Dealerscope Magazine

By: Jeff Hatch

March 18, 2015

Sean Stapleton, president & CEO of Warrantech, recently spoke with Dealerscope magazine regarding current company initiatives. Here’s an excerpt of what he had to say in “Making the Warranty Connection,” which explores how “extended service plans are resonating more than ever with cash-careful consumers” and how Warrantech intends to give them and retailers the best deal for their money.   

Warrantech plans to expand its successful monthly protection program offered through our retail partners. The existing program, which provides monthly billing solutions for mobile device protection, is being expanded to offer comprehensive protection options for an extensive array of equipment owned by customers, regardless of where it was purchased. 

By enrolling in the program, customers will enjoy additional benefits for products purchased through the retail partner, including disappearing deductibles and in-store service. The goal is to drive both recurring protection plan sales and traffic to the participating retail partner’s stores. The enhanced offering, known as our Loyalty by Warranty™ program, will provide retailers with an innovative way to increase both revenue and customer loyalty.  

Visit dealerscope.com to read the article in its entirety and for more industry insight. 

And be sure to follow Warrantech on Facebook, Twitter and LinkedIn so you can keep up to date on company initiatives as they happen. 

Filed Under: consumers, Dealerscope, loyalty, mobile, products, program, protection, retailers, revenue, service, warranty, week

How Well Do You Know Your Service Plan/Warranty Administrator?

By: Jeff Hatch

December 23, 2014

Service contracts and extended warranties can be a great source of revenue for retailers, manufacturers and distributors. And their use as a customer satisfaction and retention tool can never be overstated. But what happens if your administrator ceases operations or is otherwise unable to service your business?

To be an approved administrator, certain licenses must be obtained along with proof of financial stability. Most administrators in the marketplace satisfy this last requirement by securing a contractual liability insurance policy (“CLP”) issued from an insurance company. This CLP requires the insurance company to “stand in” for the administrator in the event the obligations to the consumer have not been met. But what happens if the insurance company cancels the administrator, cannot provide administrative capabilities or ceases operations?

While the name of the administrator, and often the insurer, is listed in the service contract, when the customer seeks payment of a claim or a return of their funds, and the administrator and/or insurer no longer answer their phones, where does the customer turn?

Throughout the years, there have been numerous instances where either the administrator and/or the insurer of a service contract program have gone out of business or otherwise ceased operations. When this happens, your customers may not get their claims paid or their refunds processed and YOU will be their target of ire and will often be compelled to make good to the customer out of your own pocket.  How do you prevent this?

At AMT Warranty and its subsidiary Warrantech, we believe it is critical that you know and understand the capabilities and financial wherewithal of your administrator and your insurer. Conducting due diligence and asking the right questions can make all the difference between a service plan program that provides you with revenue and customer satisfaction and one that is a customer service and financial nightmare.

To ensure your service contract providers will be there when your customers need them most, we believe you should be asking the following:

• How long have they been in business?
• What is the experience and background of their management team?
• What is the size of their business?
• What is the ownership structure of their business?
• What is their Better Business Bureau rating?
• Who is their insurer?
• How many insurers have they had over the past 10 years?
• Are they and the insurer under common ownership?
• What is the insurance structure of the CLP (e.g., is the insurance company standing in on the “first dollar” of risk or are they simply providing an excess of loss policy)?
• If your administrator is using an “excess of loss policy,” is your administrator reserving sufficient monies needed for the potential risk not covered under the insurer provided policy?
• How long has their insurance company been in business?
• What is their financial size and A.M. Best rating?
• Are the respective companies compliant with SOX, PCI, SSAE 16, etc.?
• Do they have audited or public financials?
• Have you visited their facilities?
• Are they outsourcing any critical functions?
• Are you doing reference checks?

A well designed and maintained service contract is only possible if all of the parties to the transaction are fully capable of performing their various roles and can weather periodic or irregular changes to their business model or performance, especially if your provider is not vertically integrated with the insurance company.

Filed Under: administrator, business, claims, contract, financials, insurer, manufacturers, retailers, service, warranty

Peace of Mind: the Ultimate Add-On

By: Global Administrator

April 07, 2014

Sean Stapleton, president & CEO of Warrantech, recently spoke with Dealerscope magazine about the importance of extended service plan programs for retailers. The following is an excerpt, providing a brief glimpse of what the company has in store for 2014 to help businesses increase their extended service plan offerings and give customers the most value for their money and a worry-free shopping experience.

Warrantech Corporation works closely with its retail partners, field training teams and consumer focus groups to develop innovative programs designed to drive extended service plan sales. Through this collaborative effort, new program offerings are developed and tested. Once beta testing has been completed, successful programs are rolled out to Warrantech partners.

Based on recent beta-testing results, Warrantech is making available to its partners a number of dynamic offerings designed to increase both partner revenue and customer retention. One such offering is Warrantech’s Verify & Protect program, which is a real-time missed point-of-sale extended service plan program for online retailers. This program utilizes multichannel marketing solutions to offer customers who have not purchased an extended service plan as part of their product purchase an additional opportunity to do so on a real-time basis. Additionally, the program is designed to create a white-glove experience for customers by providing them with real-time purchase detail and shipping confirmations on their recent purchases.

Look for the full article in the March 2014 issue of Dealerscope or online at www.dealerscope.com.

And be sure to keep up with us on Facebook, Twitter and LinkedIn so you can learn more about our innovative products and services as they become available.

Filed Under: &, customers, Dealerscope, extended, plan, Protect, retailers, Sean, service, Stapleton, Verify, Warrantech

Holiday Shopping Facts and Figures

By: Global Administrator

December 09, 2013

It’s the most wonderful time of the year. And it’s also the biggest for retailers. According to the National Retail Federation, nearly one-fifth of the retail industry’s annual sales come directly from November and December. This year, retailers are expected to bring in more than $602 billion.

To put into perspective just how big end-of-year sales are for business, keep in mind that retailers will take in more this holiday season than Valentine’s Day, Easter, Mother’s Day, St. Patrick’s Day, Father’s Day and Halloween combined. By comparison, the next biggest shopping event is back-to school season, which recently brought in an estimated $72.5 billion.

As a primer of what you can expect this year, here are a few more notable holiday numbers to take into consideration:

$2.9 billion
Amount retailers estimate that they lose due to return fraud during the holiday season

$602.1 billion
Projected holiday retail sales for 2013

2012 Holiday Retail Sales By Sector


 

Sales in Millions

Percentage of Annual Sales

Building and Garden Equipment and Supplies

$46,557

16%

Department Stores

$43,735

24%

Electronics and Appliance Stores

$23,135

23%

Furniture And Home Furnishing Stores

$18,496

19%

Jewelry Stores

$9,145

29%

3.9%
Expected increase in sales this year

3.3%
Average increase in holiday sales for the last 10 years

20% to 40%
Percentage that November and December sales contribute to a retailer’s annual sales

40%
Percentage of shoppers who begin their holiday shopping before Halloween each year

$752.24
Average amount that shoppers spent on holiday items (gifts, decorations, food and more) in 2012

15% to 13%
Expected increase in online holiday sales, estimated to bring in as much as $82 billion this year

Source: National Retail Federation. For more information, visit http://www.nrf.com

Filed Under: Holiday, retailers, sales, shopping