Data analytics can play a significant role in improving extended service contract sales among retailers. Businesses can gain insights into customer behavior and trends, which can be used to improve the design of extended service contracts, target marketing campaigns, and optimize pricing.
To help you decide what data collection is important to measure your program, Centricity experts have identified five key metrics that will allow you to look at the performance and effectiveness of your extended service contract program:
- Attachment rates
- Sales volume
- Renewal rates
- Customer satisfaction
- Profit margin
Here are some specific examples of how crucial data collected by Centricity and our retail partners can be analyzed to improve extended service contract programs:
- Identifying High-Value Customers: Data analytics can be used to identify customers who are more likely to purchase an extended service contract by analyzing factors such as the customer’s age, income, and product ownership history. Businesses can then target these customers with marketing campaigns.
- Personalizing Offers: By tracking sales trends and identifying opportunities to increase sales, retailers can analyze data on customer demographics, purchase history, product selection, brand preference and repair history to target customers who are more likely to purchase product protection.
- Increase Customer Satisfaction: By utilizing surveys and social media monitoring tools, data can be used to track customer satisfaction and identify customers who are more likely to renew their contracts. This information can be used to improve customer service and develop loyalty programs.
- Reduce Costs: Centricity has collected extensive data on frequency, severity and volume of repairs by product and brand. Advanced data analytics on repair costs, marketing costs, and administrative costs can be used to identify areas where retailers and customers can save money.
Data analytics is a powerful tool that can be used to improve extended service contract sales in a number of ways. By using a variety of data analytics tools and techniques, Centricity’s channel partners can gain a better understanding of their customer base and pinpoint opportunities to improve on their product protection programs. Centricity specializes in customizing product protection programs with unique features that will most benefit our retailers and their customers.
Centricity has been a trusted leader in the retail sphere for more than 40 years. We understand that an evolving industry can pose challenges for growing businesses, so we work with our channel partners to create tailored product protection programs that will boost their extended service contract sales and generate additional income. We don’t take a one-size-fits-all approach.
To learn more about how partnering with Centricity can help you grow your business, contact us today or visit our website.