The Warranty Group has launched the “Service Plus” plan designed to be easy to buy, to operate and administer.
Rich Green, CEO, UK and Europe, explained, “A growing number of used car sales are happening online and this trend looks set to continue but it is not easy to integrate added value products like extended warranties and service plans into those processes without adding quite a lot of complication. Before you know it, you are adding a page to cover each different product, which is too much.
“However, not offering added value products has a twofold impact. The customer is not given access to warranties and service plans that may be useful to them and which they want or need, and the dealer misses out on an important customer retention and profit tool.
“This is why we see Service Plus as something that is potentially highly innovative in this area and can solve the online added value product issue. It provides a single payment option for customers to include as part of their online car purchase, probably following their finance choice.
“With a single or monthly payment, they can access a warranty and planned servicing as part of their vehicle purchase, adding to any warranty provision included by the dealer. This can be done on one page dedicated to the product, together with tools such as explanatory videos. There is clearly potential for the product in this area and we are starting to talk to some major parties about trialling Service Plus as part of an integrated online customer journey.”
The product was trialed last year and is now set to launch with two major brands. Rich Green concluded, “The easiness of the product – the way that cover can be put in place with just a few details from the customer – makes it a very attractive retail proposition.”