Warranty Marketing Quick Tips – Managing an Effective Marketing Campaign

Here are 5 quick tips to help you manage an effecting warranty marketing campaign:

Audience Selection Talk to the right people.  Your first step is finding the right audience for your message.  Though this might seem obvious, the most effective campaigns are the ones that target customers who are most likely to be interested in purchasing a service contract.  Analyzing your customer data will reveal patterns that you can use in the selection strategy.  Our applications are based on predictive models that analyze thousands of behavioral, demographic and lifestyle data elements of customers who have purchased contracts in the past to determine the characteristics most likely to predict future purchases.

Creative The message counts.  The benefits of an extended service contract can be complex and difficult to explain, so the message has to be clear and concise.  Through testing, we’ve found that a business letter format is best.  Keep the copy crisp, direct and personalized to tap into unique interests and needs.  We vary the messages to quickly engage the reader, and offer links to web sites where additional detailed information can be found.  However, we keep the format consistent in order to create a sense of familiarity.

Multi Channel Using multiple means of communication will have a positive effect on customer engagement and conversion.  Customer opt-out requests must be respected, but exposure to a familiar and consistent message via different channels makes it easier to be in the right place when the customer is most receptive.  Direct mail remains king in these applications but we can complement more traditional DM with email, social media and, as Nate Baldwin, General Manager of After, Inc. noted recently, even outbound telemarketing. The more impressions, the more likely that the customer will engage as we meet them in a comfortable place.

Timing Say the right thing at the right time.  There are two times when a customer will be most interested in purchasing an extended service contract: close to the start of the manufacturer’s warranty and close to the end of that warranty.  However, we also know that repeating the offer throughout that warranty period will increase the overall conversion rates.  Testing helps us hone in on the most effective timing intervals, while our predictive models help us determine the right number of efforts per customer.

Flexible Response Channels Make it as easy as possible to complete the purchase.  The customer’s preferred payment channel and payment type is just as important as their preference for a communication channel.  Online purchases with mobile access provides a 24/7 option, personal contact with a call center operator and chat feature affords the consumer the opportunity to ask questions and clarify points before making their purchase decision, while the option of mail-in response with check payments may be the better choice for customers less comfortable with newer technology.  In our experience, customers may tap into all of these channels as they consider their purchase or complete their purchase in one simple and quick transaction.


The most effective marketing campaigns will follow these steps to identify and engage the customer, speak to them with a meaningful, personalized message and offer a barrier-free path to purchase.