Value Added Services - “Easier Said Than Done”
In today’s competitive marketplace, retailers are in a constant race to be the first to market with the latest product or accessory, merchandise strategy, or service offering. From the Geek Squad to Techknowledgists, retailers are looking for ways to enhance the buying experience and profits by wrapping services around the product purchase. Whether it is as simple as a delivery and setup of a home network or as complex as a home theater installation and integration, in this age of technology convergence it is a requirement to provide “extended services” to make the sale complete and keep customers coming back for their next purchase. Extended service plans are becoming the cornerstone for the extended services being offered today. Often the first and most profitable add on sale is the service plan. The most successful retailers are leveraging the service plan sale to drive overall market basket dollars. The key goal is to attach additional services and accessories to make the sale complete and ensure customer satisfaction. As the old saying goes, “it’s easier said than done.”
Solution Selling
Value Added Services (VAS) works with the retailer and their service contract administrator to wrap a tangible point of sale selling solution around the extended service plan program’s terms and conditions. It has developed a wide variety of creative solutions designed to increase extended service contract sales attachment with additional services and accessories. VAS was the first to market with tangible solution selling tools designed to enhance the sale of extended service contracts including:
• Product accessory kits for appliances, PCs, laptops, printers, digital cameras and home improvement
• Product installation and care kits for home theatre products including big screens, plasmas and LCDs
• Patented smart phone & handheld computer screen protection
• Anti-virus, hacker and identity theft service packs
• Self-service web based service contract registration and claims processing tools In all instances, VAS’ tangible solutions are designed to increase extended service contract sales, gross margin and attachment rates; as well as improve customer satisfaction. Each of its selling solutions is custom tailored based on its clients’ needs and objectives.
Product Accessory Kits and Fulfillment Programs
VAS develops, procures and packages accessories and services designed to enhance and improve service program attachment rates. VAS provides a quick-to-market fulfillment solution. It has all of the necessary systems and resources to provide:
• Creative development and printing as required by retailers’ branding requirements
• International product procurement including Canada, China and Taiwan
• Product aggregator including warehousing and packaging fulfillment
• Required shipping standards including EDI capabilities
• “One-off” order processing and fulfillment VAS’ ability to package value added accessories and services combined with an unparalleled expertise in retail marketing have translated into proven increases in extended service plan sales. Each of its client’s customized tangible solutions have resulted in increased sales without adding overhead.
Financial Analysis
VAS has assembled an extensive set of program tracking tools designed to measure every aspect of the service program’s performance. Its ongoing program analysis provides the necessary data to fine tune service program offerings to ensure continued maximum revenue and profitability is achieved. Its analyses designed specifically for extended service contract programs include:
• Category specific retail pricing models
• Point of purchase sales collateral expense
• Associate compensation
• Competitive shop-outs
• Aftermarket/missed point of sale
Selling the solution
VAS understands the importance of solution selling on the sales floor. With each tangible selling solution launch it provides extensive turn-key training materials for store associates & department heads that are then provided to corporate training departments. In addition, VAS integrates itself within its clients’ organization by participating in regional conference calls, new store grand openings, quarterly merchandise business reviews and general manager meetings to ensure the tangible selling tools are always up-to-date with the corporate objectives. Lastly, VAS’ tangible selling solutions seamlessly integrate with any extended service plan program administrator and insurance company. It works diligently with each provider to maximize attachment rates, revenue and gross margin.