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Improving Attach Rates.


Improving Attach Rates

Understand, Drive and Enrich Customer Experiences

Global warranty service contract associationTerry Hawkins, based on decades of industry experience shares some best practices to help companies increase service plan attach rates.

Make Timely Offer

The ideal time to sell a service contract is when the customer purchases the product. Companies need to ensure the offer is introduced early in the sales process and reiterated as appropriate throughout. Companies should simplify the decision for customers by presenting the product and service contract together as a smarter value offering.

Initial and on-going training for channel partners is essential, so they are able to outline the advantages, reinforce value of the service contract, and overcome customer objections at the Point of Sale (POS).

As sales associates change frequently, providing content and on-demand training on mobile devices is a cost effective solution for companies. The same mobile device can be used to present tailored options to customers.

Post-Sale Follow-Up

Since a low percentage of customers buy contracts at the POS, it’s critical for companies to offer plans at relevant, post-sale customer touchpoints.

Companies need to simplify the registration process and incentivize customers to register products, thereby establishing a direct relationship. To increase registration rates companies could offer additional warranty coverage and easier access to product related content online or through customer’s mobile device.

Automated campaigns to reach customers at important touchpoints such as 90 days after product purchase, before standard warranty expiration, and at the time of service and/or maintenance will provide opportunities to present new plan offers and renewals.

A recent Aberdeen Group report specifies “59% of organizations of organizations indicate the top factor in delivering and/or selling extended warranties is the customer relationship/trust”.

Deliver Genuine Value

As an intangible is being sold, the offer must be compelling and persuasive to be effective. The level of support provided by the service contract should ensure that customers perceive additional protection and lowered risk. Meeting customer’s needs over the life of the product is critical to delivering a valuable service to the customer.

Focusing on innovative products and enhanced offers, such as Accidental Damage from Handling (ADH), product replacement guarantees, or higher service levels compel the customers to purchase service plans.

93% of customers identify word-of-mouth as the most reliable source for ideas and information about products and services. Amplify the impact of positive customer experiences by facilitating social sharing and fostering customer advocacy. Leveraging customer communities to answer Frequently Asked Questions (FAQs) will free-up support agents.

Measure and Reward

Rewarding both channel partners and customers encourages the desired behaviors to help achieve revenue and profitability goals.

Sales associates must clearly understand the importance of offering service contracts for the profitability of the business. Performance reports for plan sales, attach rates, and missed opportunities should be generated and shared regularly to drive continuous improvement. The structure for commissions and awards should be in place to recognize and reward sales performance.

Keep customers engaged through apps, promotions, contests and gamification strategies to improve customer loyalty and repeat purchases.


Using these best practices, brands can realize significant increase in attach rates. In fact, some of the companies were able to double the plan sales within a short period of time. By focusing on increasing service plan attach rates brands can leverage the existing customer base to harvest recurring profits.

What are your own best practices? Leave comments and share what you know below.

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