What Is an Attach Rate? Overview, 11 Facts

An attach rate is the percentage of leads or contacts who have been successfully sent to the sales pipeline by a marketing campaign or sales campaign.

This number is calculated by dividing the number of people who have been successfully sent to the sales pipeline by the total number of contacts or leads in the data set.

What Is an Attach Rate?

In any case, you have undoubtedly lost money. You have left your consumer base susceptible to competitors that have a diversified product selection and can offer greater value to your customers.

What Is an Attach Rate?

An attach rate, also known as an attachment rate, is a sort of evaluation that forecasts the quantity of supplementary items that are anticipated to be sold alongside a core product.

How To Determine the Attach Rate

Determining the attach rate often entails estimating the number of complimentary units of a certain product that will be sold for usage with the primary product within a specific time period.

A maker of CDRs, for instance, may forecast the average number of units that the average user will purchase yearly for usage with a laptop.

This sort of prediction frequently needs the use of historical data as well as an awareness of market developments that are currently occurring and are predicted to occur over the period under consideration.

Typically, the final attach rate is stated as a ratio between the number of units sold of the attached product and the number of units sold of the main or primary product.

Understanding the Attach Rate

It is vital to estimate an attach rate for each of these linked products since the nature of the supplemental items that are sold because of their relationship with a core product might be fairly varied.

In the case of a DVD player, they may comprise DVD discs, cleaning agents designed to remove dust from the disks, and even replacement casings for the DVDs.

A producer would estimate an attachment rate for each of these connected products as a way of estimating demand, and then set production limits accordingly.

Assessing the attach rate for a supplementary offering may also assist producers determine when it is appropriate to phase out and, in certain cases, discontinue production of a specific product. During the second half of the 20th century, the arrival of CDs surpassed the popularity of vinyl recordings.

What Is an Attach Rate?

As stereo equipment makers began phasing out turntables as a standard component, record companies shifted their attention to audio cassette and CD production, while gradually decreasing the amount of vinyl records they manufactured each year.

Concurrently, makers of vinyl record cleaning supplies and stereo needles began to limit manufacturing while integrating CD-compatible cleaning kits. By comprehending the variations in the attach rate, manufacturers were able to alter their product lines and maintain their market viability.

What is Service Contract Attach Rate?

Simply put, the attach rate is the proportion of product sales transactions that contain a service contract at the moment of sale. According to study conducted by Aberdeen Group, a 5% increase in the attach rate might result in a 9% increase in total service revenue.

Imagine the additional revenue that would be generated if the attach rate was increased by 10 or 15%. The attach rate is a potent lever field service managers may employ to increase profitability.

What Causes Low Attach Rates?

The following are the most typical offenders:

  • Lack of focus: If you do not measure and track attach rate, and if no one is responsible for it, the number is likely to be low.
  • Lack of sales incentive: Are your sales representatives and service technicians adequately incentivized to provide a service contract at the point of sale, either through financial incentives or additional recognition?
  • Lack of training: Your service contract will be difficult to sell if your sales representatives and technicians are unable to adequately communicate its value proposition to clients.
  • Lack of preparedness: When a service technician is unable to upsell at the point of sale, the likelihood of selling a service contract decreases substantially.

What’s the Impact of Low Attach Rates?

Your potential income is diminished by the sale of items without a service contract.

“As a service company, you don’t want time and materials (T&M) revenue because you can’t build a cost infrastructure based on unpredictable income,” explains ServiceMax’s vice president of worldwide customer transformation, Patrice Eberline.

“Signing a client to a service contract as soon as feasible is a foolproof strategy to increase income through predictability.”

How Can You Improve Attach Rates?

Follow these three steps:

What Is an Attach Rate?

  1. Track your attach rate. Make service contract sales a strategic priority and use attach rate to determine your baseline performance and measure progress.
  2. Incentivize contract sales. Give technicians extra incentive to capitalize on upsell and cross-sell opportunities while onsite with the customer.
  3. Empower service technicians with mobile technologies. Using iPads or other mobile devices, make it simple for service technicians to show consumers with a variety of pricing, discounts, and SLA choices for service contracts. Once a consumer chooses a service plan, a technician is able to generate a service contract on the spot to finalize the deal.

How do you calculate an attach rate?

It’s a straightforward formula. Divide the number of add-on items sold, known as secondary products, by the number of single products sold, known as main products, then multiply the result by 100.

Consider the following example. A furniture business that specialized in selling high-end couches and sells 1,200 every year also offers, for an extra fee, a protection plan that covers the majority of potential sofa damage.

They have sold 913 policies of protection. (913 sold protection plans divided by 1200 sold couches) times 100 Equals 78% attachment rate.

If you are a business owner or salesperson and your attachment rate is poor, it is reasonable to infer that one of two things has occurred.

Either you have fallen prey to being a one-trick pony and have settled into a specific comfort zone selling one thing, or you have failed to explain to your clients the value of the other items and services you offer.

In any case, you have undoubtedly lost money. You have left your consumer base susceptible to competitors that have a diversified product selection and can offer greater value to your customers.

What Is an Attach Rate?

Understanding Business’s Attach Rate

What Is a Business’s Attach Rate?

Attach rate, also known as attach ratio, is the number of add-on products/units sold in comparison to the core product/unit. For example, how much merchandise is sold in comparison to the amount of event tickets sold?

Attachment rate aids in determining the health of an organization. If attach rates are high, it is likely that your clients are pleased with your goods. They are so satisfied that they want to buy more from you.

It also indicates that your sales and marketing teams are operating well and that your customers are aware of and driven to purchase complimentary products.

If a company’s attach rate is poor, your clients may not find value in your product/service, or they may be unaware that you provide more products and services. Inquire with your customers about the obstacles they experience, and alter your product or sales and marketing strategy accordingly.

To get the attach rate, divide the total number of secondary units sold by the total number of main units sold. Multiply this result by 100.

Examples of Business Attach Rates

What is the correlation between the number of new automobiles sold and the number of maintenance packages sold at dealerships? The attach rate would be 36% if 42 new automobiles and 15 maintenance packages are sold in a single month.

(15 / 42) X 100 = 36%

How many premium features are purchased for each subscription to a freemium software? Attachment rate is 42% if your firm receives 60 freemium software signups per month and sells 25 premium feature add-ons to that set of customers.

(25 / 60) X 100 = 42%

The attach rate would be 83 percent if a bike store sold 30 bicycles and 25 helmets in the same month.

What Is an Attach Rate?

(25 / 30) X 100 = 83%

Attach Rate Forecasting

Estimate the attach rate similarly to how you would forecast revenue. Ensure that you examine internal and external factors that may alter these values. These variables may include seasonality, personnel, market shifts, product modifications, and economic situations.

For instance, if your attach rate for printers (75 sold) to reams of paper (50 sold) in Q3 is 67 percent, but you expect a decline in printer sales in Q4 (60 sold) while keeping paper ream sales (50 sold), you may plausibly predict an increase in attach rate to 83 percent.

What do I do to Increase my Attach Rate?

Get out of your own way! Change is difficult, but I see business owners and sales representatives alike grow too accustomed to selling a single product much too often.

As a result of the globalization of goods and services, competition for customers is intense and profit margins are often reduced. You must be willing to “sell” more than one “product” if you want to generate more money and protect your consumer base.

Deliver value. Frequently, the goods that you sell complement one other. Take the time to learn about your clients, to comprehend their issues, and to offer them a combination of goods that correspond with their company objectives and desires.

When you accomplish this, not only are the services you provide valued, but so are you as a sales representative and the firm as a whole.

Follow up with your current customer base. Even though you missed the boat the first time around, it does not mean you are forced to swim to shore. As a result of our present health problem, many of us are spending less time selling and more time at home.

This is the ideal moment to examine your CRM system. Take the effort to precisely identify your attach rate (sales representatives and business owners) and build a plan for selling to these consumers after the transaction.

Stop wasting money. Calculate and comprehend your success rate. Once you have determined where you stand, you can implement the appropriate approach to increase the number of secondary items sold, meet your goals, and eventually improve your company or, in the case of a sales representative, earn more money and retain clients.

You are ultimately responsible. Take the time to be confident in the items you supply, to listen to your clients and prospects, and to present them with business-impacting products and services.

Start establishing relationships with the clients to whom you have only sold a primary product. “Twenty years ago was the finest time to plant a tree. Currently ranks as the second-best time.”

FAQs

What are ancillary services in real estate?

Ancillary services are brokerage revenue streams that are distinct from commissions. The most prevalent auxiliary services include mortgage, title, and escrow.

This is due to the fact that they are so intrinsically linked to each completed transaction. Additional auxiliary services include property management, mentoring, and real estate instruction.

What Is an Attach Rate?

Why do ancillaries in real estate matter?

Numerous brokerages employ supplementary services to boost their earnings. However, they are frequently constrained by RESPA. This law prohibits clients from being compelled to utilize supplementary services.

Numerous brokerages spend a great deal of effort determining how to increase customer usage of their supplementary services while being compliant.

What is attach rate?

Attach rate refers to the proportion of a brokerage’s customers that utilize supplementary services.

Why does attach rate matter?

A high attach rate is the objective of brokerages that rely on auxiliary services. Tracking attach rate is a useful indicator of the allure of auxiliary services to potential customers.

Each transaction may be more profitable if the attach rate is higher. It may also be used to determine the profitability of a brokerage relative to its competitors.

What is the average attach rate in real estate?

The average attach rate for title and mortgage services in the sector is around 15%. Attachment charges might vary widely depending on the brokerage and product offers.

Redfin’s stated goal for title attach rates in 2019 is greater than 50 percent. However, their mortgage interest rates are far cheaper. Experts believe that 20 to 30 percent of HomeServices of America’s customers utilize the brokerage’s other services.

Conclusion

An attach rate is the number of views per person. This tells you how many people have actually watched the video. If you are selling a product or service that you know has a lot of demand, then you can use this information to decide whether to continue with the video or not.

For example, if you have an online course and your email list is small but growing, then you can see from the data how many people are interested in it. It’s important to note that the attach rate will vary depending on your audience.

For example, a brand new business will have a higher attach rate than a big company with more traffic.

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