Why Is Warranty Good for You and Upselling to Clients?

By Injured Gadgets - October 19, 2020     2368 Views

Upselling refers to persuading customers to buy an expensive and upgraded version of the product they chose or other add-ons to increase the total sales value.

Upselling can increase your revenue by 10-30% on average. Besides, most companies generate 70-95% of their income from upsells and renewals. These numbers indicate that putting the right upsell offers in front of the right customers at the right time is an important sales tactic.

If you have not started upselling to your customers, now is the right time. Let’s take a look at the importance of upselling, different ways to upsell in the mobile repair industry, and why the warranty is good for you.

Why Is Upselling Important?

When done right, upselling can improve the shopping experience. Here are some reasons why upselling is important in the mobile repair industry.

  • Build better relationships with customers

When you suggest premium products or upgrades that make customers feel like they got a better deal, it will help build strong long-term relationships with customers.

  • Increases customer lifetime value (LTV)

Customer lifetime value refers to the net profit contribution a customer makes to your business over time. When done right, upselling can make customers come back whenever they need anything related to phones, thereby increasing your profit.

  • Boosts your revenue

As mentioned above, upselling increases net revenue by 10-30% on average. The more the revenue, the faster your business grows.

  • Increases word of mouth marketing

When you add value to the customers’ life via better deals and products, they are more likely to share positive things about you and your store with their friends and family. As a result, you will see an increase in the number of customers over time.

How Can You Upsell in the Mobile Repair Industry?

Successful upselling requires understanding customers’ needs and making the shopping experience more enjoyable (and not feeling like a burden in their pocket). Here are some of the upselling best practices to try:

  • Reward customers for spending more money on your store (maybe a discount on their next purchase).
  • Always use side-by-side comparisons to demonstrate the value of the more expensive version of the product.
  • Make sure that the product you are trying to upsell is within a reasonable price range. Customers rarely pay more than 20% of what they planned to spend.
  • Choose the right products to upsell. For instance, if a customer insists on using a wired headphones, don’t force them to check out wireless headphones.
  • Use the right language and tone to highlight the benefits of buying or the risk of not buying the recommended product.

How Does Warranty Increase the Chances of Upsell?

The mobile phone insurance industry is expected to register a CAGR (compound annual growth rate) of 12.7% from 2019 to 2025.

The primary reason behind the insurance industry’s rapid growth is the increase in the average repair cost of smartphones.

Every time someone gets their broken screen repaired, they would want to ensure they won’t have to spend on screen repair again (at least not anytime soon).

Thus, the best time to upsell a warranty program like Insured Gadgets is immediately after the screen repair.

What Is Insured Gadgets?

Injured Gadgets is a warranty program that provides customers up to $150 or $300 in screen damage coverage for up to one year. With Insured Gadgets, not only will your customers benefit, but you will also earn $60 per sale. This means if the average repair cost is $150, adding Insured Gadgets will increase 30% revenue in every single ticket.

You can upsell Insured Gadgets immediately after the screen repair or when a customer wants to replace their tempered glass. For instance, you could say something like:

“I have a better version of tempered glass that gives you either up to $150 or $300 in screen break coverage. You can then use your phone without the fear of dropping or breaking the screen.”

Key Things to Know About Injured Gadgets

  • The warranty covers the front glass and LCD screen of your device.
  • Excessive physical damage (like drops over six feet or device run over by a car), liquid damage, and damage not affecting your device’s front glass won’t be covered.
  • With Injured Gadgets, customers will get a tempered glass and liquid glass as well as a screen break cover.
  • The customer must register their device within 14 days of purchase in order to qualify for warranty coverage.
  • The warranty coverage will begin 31 days after your warranty registration is validated.
  • Your warranty will be covered throughout the United States, Alaska, and Hawaii.
  • A customer can make only one claim within a 12-month period.
  • There is no restriction regarding service facilities. A customer can submit an estimate for the repair from the shop of their choice.

Wrap Up

Upselling can increase your overall profit margin, customer satisfaction, and word-of-mouth marketing. However, it is essential to follow the upselling best practices to increase the chances of sales and reduce the probability of frustrating the customer.

Upselling a warranty program always works in favor of both the seller and the customer. It ensures customers almost free screen repair the next time it breaks and increases the sellers’ profit.

Do you upsell in your store? What strategies do you use? Let us know in the comments.