Cinch Real Estate Red Flag Policy

Cinch Real Estate Red Flag Policy

Overview

To provide an outline of CINCH sales activity and CINCH eligible and ineligible commissionable activities.

Summary

An eligible Cinch sales call is when the customer indicates agreement to the sales activity and has a clear understanding of the activities being undertaken on their warranty.    Commissionable sales activity is if an associate’s efforts lead the customer to continue with the warranty; including the addition of available features such as options and auto-renewal with customer consent.   It is necessary to confirm the sales activity is applicable to the warranty; outlined below.  

Sales verification is completed on TS+R sales.   Any sale deemed invalid will not be eligible for commission payout and will incur disciplinary action; up to and including termination.

In all cases, you must be reasonable with your judgment.  Consent and a full understanding by the customer of the sales activity taking place is necessary.  Sales scripting MUST be used on all sales calls and MUST be verbatim.  If you are unsure whether the activity is a defined sales activity, eligible or ineligible for commission, or need clarification on proper dispositioning, please ask a supervisor or a Quality Assurance Specialist.

The below outlines defined sales activities, eligible and ineligible commission activities, and the correct dispositioning of these activities.   

Defined Sales Activities

  1. Renewal:  The processing of an additional year of warranty coverage.
    Requirements:     
    1. Accurate communication of warranty renewal coverage
    2. Includes communication of changes in coverage and/or price
    3. Agreement to process the renewal on the call interaction
    4. If the request was received via communication from another department (email, letter, etc.) agreement must still be obtained from the customer
    5. Agreement to a defined payment method
    6. Payment completion of the previous warranty year (s)
    7. Warranty renewal eligibility needs to be confirmed. 
    8. If set up for non-renewal per company request (Service Company Option, it is ineligible for renewal
    9. Properties being used for business purposes are not eligible
  2. Auto-Renew:  The set-up of a warranty to automatically renew for another year after the expiration date.   Auto-renewal will continue indefinitely unless discontinued by one of the involved parties (Cinch or the customer) or cancellation of the warranty occurs. Automatic renewal will include the continuation of payments being applied to the direct billing method established on the warranty.
    Requirements:
    1. Clear, accurate communication of the auto-renewal process including
      1. Warranty will renew automatically upon the current year’s expiration unless the customer calls to discontinue warranty coverage or the auto-renewal feature
      2. Payments will be applied to the billing method on file upon renewal
      3. Only warranties set for a direct billing method are eligible for auto-renewal 
        1. Invoice billing is not eligible for auto-renewal
      4. Explanation of the auto-renewal reminder letter the customer will receive 30-45 days before the plan expires.
        1. Communicate to the customer no action is needed on their part unless they wish to make changes to the warranty
    2. Warranty auto-renew eligibility needs to be confirmed
      1. If set up for non-renewal per company request (Service Company Option it is ineligible for renewal
      2. Properties being used for business purposes are not eligible for renewal
  3. Options:  The adding of coverage features not included in the basic warranty coverage plan.  Options include additional coverage for items, Premier Upgrade Plan (PUP), and deductible buy downs when available.
    Requirements:
    1. Warranty must be 30 days before or after the effective date to be eligible to add options
    2. If renewing the warranty 30 days or more from the new effective date, options can be added at the time of renewal
    3. Options applied to the previous warranty year must be confirmed with the customer for application to the new term
      1. Note:  Previous year options are not eligible for commission
      2. The only scenario in which options from the previous year are an eligible sales activity is if the customer clearly states they do not want to continue with the options on the renewal year, but you convince them to keep them on the renewal year.
    4. Only applicable options are available for sale 
      1. Review basic coverage to determine applicable options available
You must confirm all activity and gain customer consent to proceed.

Eligible sales activity includes the following:

  1. Customer makes a statement such as “I want to renew my warranty”
  2. Customer advises they received their renewal notice and agrees to process the renewal over the phone
  3. If the customer insists on paying by invoice (sales efforts MUST be made to obtain a direct billing payment method) and consent is given by the customer to renew the warranty during the phone interaction
  4. Customer’s warranty is expiring within the next 90 days and the associate proactively seeks the renewal and gains consent from the customer to renew the warranty over the phone during the current interaction.
  5. Options are reviewed with the customer and the customer agrees to add options/additions that are not previously included on prior warranty years. 
  6. Auto-renewal is not currently set up on the warranty, the associate sells the value of the feature and gains consent from the customer to add the auto-renew feature to the warranty during the current interaction. 
  7. If the customer renewed already (the below can be initiated by either the customer or the associate on the current call).  The associate must sell these options to the customer in adherence to the above requirements
    1. Review the warranty to determine if the customer is still within the eligible period to add options
    2. Review of the warranty and the customer is eligible to add the auto-renew feature
      1. Exception: The warranty cannot be set for non-renewal per the Service Company’s Option

Ineligible sales activity includes the following:

  1. Renewing, setting up auto-renewal, or adding options to a warranty without clear customer consent including the review of the actions the associate is undertaking
  2. Renewing a warranty when the customer indicates they will complete the sales activity online or via the mail.
    1. If the customer is not giving consent to proceed with the renewal activity but states they will complete it themselves online or by mail, the sale is ineligible
    2. If the customer insists on paying by invoice (sales efforts MUST be made to obtain direct billing) and no consent is given by the customer to renew the warranty during the phone interaction
  3. Completing any of the defined sales activities outlined above when the customer indicates they will “think about it”
  4. Making inappropriate statements that do not set proper customer expectations to entice a customer to renew the warranty, set up auto-renewal, or the adding of optional coverage such as “we cover everything!” and “all you ever have to pay is $XX!”
  5. Renewing the warranty or completing any other defined sales activity and setting the billing method to “invoice” in order to not automatically charge the customer while they make their buying decision 
  6. Completing the sales activity after the customer has communicated a desire not to proceed
  7. Completing the sales activity without customer billing method consent
    1. Invoice renewals are allowed but consent must be given by the customer before using this billing method
  8. Dispositioning options/additions that were on the previous warranty year as if added during the current interaction for commission purposes
  9. Dispositioning auto-renew which was on the previous warranty year as if added during the current interaction for commission purposes
This list is not all-inclusive and reasonable judgment must be applied.  Sales activity is defined as an activity in which a customer is eligible to enroll, renew and/or add or make changes to an existing warranty.  Consent and full understanding by the customer of the sales activity taking place is required.

Eligible Renewal/Option and Auto Renew Commission Dispositioning

The correct dispositioning of calls for commission purposes must reflect the activity which took place.  This includes the proper selection of billing types as listed below. 

Renewal


Scenario

Commission Payout Type

Renewed and Saved Credit Card or Checking Account on file.

Credit Card

Renewed as Invoice and Payment Taken in Full by Credit Card. A Credit Card or ACH is not saved for future billing.

Invoice

Renewed as Invoice. No direct billing method is saved on file.

Invoice

Warranty already set up as Auto Renew at the time customer calls but they insist on renewing early*

Credit Card (should already be set up as a direct bill), if not, set to Invoice. A direct billing method must be obtained.

All scenarios MUST be noted to reflect the activity which occurred.


*You must advise the customer that their warranty will automatically renew. If the customer insists on renewing today rather than waiting for the auto-renew to take place, commission paid out if one of the above scenarios applies.

Commission Payout Type Disposition: Credit Card


Commission Payout Type Disposition: Invoice

Optional Coverage


Scenario

Commission Eligible

Adding new options to an existing, eligible contract.

Yes

Adding new options to new enrollment.

Yes

Existing options renewed from the previous year.

No

Customer requests to remove options and you convince them to keep it.

Yes

All scenarios MUST be noted to reflect the activity which occurred.


Commission Eligible Option Disposition:

Auto Renew


Scenario

Commission Eligible

Warranty is already set up for auto renew

No

Warranty is not already set up on auto renew and the associate sells the benefits of auto renew

Yes

All scenarios MUST be noted to reflect the activity which occurred.


It is required that the customer confirms they are agreeing to set the warranty up for auto renew and billing for the new term will continue upon renewal.

Commission Eligible Auto Renew Disposition:

ROD Procedures

All sales call will be verified. You must initiate ROD on every sale to get paid commission. Failure to initiate ROD will result in an invalid sale.
  1. Enrollment – E Contract#
  2. Renewals – R Contract#
  3. Auto Renewal – AR Contract#
  4. Nonrenewal – NR Contract#
  5. Save – S Contract#
  6. Billing Updates – B Contract#
    1. For multiple scenarios
      1. Enrollment with ACH billing with a Save on a separate contract:: (E 90487456 S 92234578)
      2. Renewal with CC billing updated on a separate contract: (R90487456 90487456)
      3. Save and Credit billing update on same contract: (S 90487456 B 90487456)
ROD CAN ONLY BE INITIATED FOR CALLS MADE TO AND FROM YOUR PHYSICAL LINE. WE CANNOT INITIATE ROD FOR CALLS TAKEN ON THE DIALER.

Sale Confirmation/Verification Script

This script must be read verbatim before the close of your call.

Sale Confirmation/Verification Script

“<Customer Name>, just to confirm, we will be <Renewing your Cinch Warranty for an additional year/Enrolling you in the Cinch Warranty> effective <Date>

You will be billed <Monthly/Annually in full/in 3 installments> through your <Credit/Debit Card> and funds will be deducted on the <Day> each <Period> at the rate of <Amount>.”

If options/additions have been purchased:

“In addition, we are adding/continuing coverage on <Optional items being covered>. Including the deductible of <Amount>.”

If auto-renew:

“As discussed, for your convenience, your warranty will now automatically renew upon expiration.

Do you have any other concerns?”



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