In order to maximize retail margins and customer loyalty in a post-COVID-19 world, retailers will need to reconsider every aspect of their operations, from floor planning, staff training, vendor management, and customer engagement strategies, to their extended warranty programs.
As retailers emerge from COVID-19 isolation, many will find their business model turned upside down. Gone are the days (for now) of crowded showrooms full of customers testing gadgets, impulse buyers, and long checkout lines. Instead, expect to see social distancing measures such as scheduled appointments, contactless buying, and curbside pickups to become the norm. The impact is a reduction in overall transactions, resulting in declining gross revenues. Now more than ever, maximizing retailer margins on each customer transaction is critical.
In order to maximize margins and ensure sustainability, retailers would be served well if they use this time to reset and reconsider every aspect of their operations. Everything from floor planning, staff training, vendor management, and customer engagement strategies must be re-evaluated. More than ever, retailers must find new ways to attract and convert every potential customer while continuing to service and retain them for years to come.
We all remember the financial crisis of 2008-2009 and marvel at the resiliency of our retail partners. Few retailers would dispute the impact that their extended warranty program had on their ability to recover from the brink of potential bankruptcy.
About the Author
Mike Ryan has over 25 years of experience in the service contract industry, holding senior leadership positions in compliance, underwriting, product development, and sales and marketing at AIG, AmTrust, Starr Indemnity and Fortegra Financial. In his current role, Mr. Ryan is senior vice president of marketing and business development at Consumer Priority Service.
Consumer Priority Service (CPS) is a leader and disruptive innovator in the field of service plans. The company offers extended warranty coverage for virtually all types of consumer purchases, ranging from high-end consumer electronics, to computers, major appliances, power tools, lawn & garden equipment, and much more.
CPS delivers award winning service and is rated the number one service provider in its class. All plans are backed by an A.M. Best Rating of “A-” (Excellent) Insurance carrier. Learn more about CPS by visiting www.cpscentral.com.