Company: Toco Warranty, Los Angeles, CA
Company Description: Toco Warranty offers month-to-month breakdown protection against vehicle breakdowns. Toco’s easy, affordable, & stress-free solutions shield customers from unpredictable disruptions, protecting their assets, families, and budgets. Toco's emphasis on customer satisfaction, company culture, and community outreach creates an industry-leading experience and legacy that goes beyond the point of sale.
Nomination Category: Business Development Awards Categories
Nomination Sub Category: Business Development Achievement of the Year - Financial Services Industries
 Nomination Title: Evolving Excellence in a Crowded Space
- Which will you submit for your nomination in this category, a video of up to five (5) minutes, explaining the nominated achievement since July 1, 2021, OR written answers to the questions? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video. If you are submitting written answers to the questions for this category, provide them in the spaces below.
“WHOOOO!!!!”
Ric Flair screams at you from the TV set. Perhaps next time it will be Vivica Fox, Chris Berman, or Ice Tea. CarShield spends a lot of money hiring celebrities to promote their product. That costs a lot of money.
Toco spends that kind of money also… but on claims.
Intro:
Toco Warranty is the highest overall rated provider of Vehicle Service Contracts(AKA extended warranty). Toco earned these accolades by investing in our customers’ claims and their success rather than paying expensive celebrities to promote our product on TV or radio.
Toco Warranty is a pioneer in the extended warranty space, creating the first program to be a month-to-month, subscription-based service. This approach means that instead of customers being locked into 3–7-year contracts, Toco gives the customer a service that they can cancel at any time. That means that every month, Toco has the onus of winning the customer’s business. Unlike its competitors in the market space, Toco administers and is on risk for customer claims, creating a full-stack customer experience that is managed and fulfilled by Toco. Toco’s Concierge team works with the customer from the initial claim call to the last, remaining in constant communication regarding a claim and providing support for the customer along the way to ensure that a vehicle breakdown has minimal impact on the lives of our customers.
The “other guys” sell the product and then leave the customer in the hands of whichever third-party administrator handles the claims. This creates customer confusion, conflict, and a lack of accountability.
Wouldn't you want to put your trust in a business that owns the customer experience at every touchpoint including reputable sales principles, honorable claim adjudication, and Stevie award-winning customer service?
Or, do you want to put your trust in a company that promotes using the "Dirtiest Player In The Game”?
- Explain why the achievement you have highlighted is unique or significant. If possible compare the achievement to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
Total 238 words used.
Toco's new Business Development strategy creates long-term, scaleable growth that has increased Toco's customer base and created hundreds of potential new jobs. Each avenue has either already or is projected to offer improvements to Toco's operations that will reduce acquisition costs and increase customer value, count, & lifespan.
Toco At Work offers a unique and more accessible way for customers to protect their vehicles through payroll deduction. Bi-weekly payments have eliminated customers going past due on their payments. The customer Retention rate improved to 95.6%, although customers still cancel due to selling the vehicle, switching employment, or other life changes.
Toco Affiliates create opportunities for revenue beyond the Toco bounty. When a small repair facility provides the customer, Toco also gives the customer a $0 deductible when going back to that facility for repairs, increasing stickiness for the facility and prompting future business.
Year Over Year Metrics:
- Sales
- Reduced customer acquisition costs by 72%
- Increased sales conversion from 38% to 47%, resulting in $489,062 additional sales revenue. (YOY)
- 143% improved Customer Acquisition Cost (YOY)
- 2021- 2022= Every $1 spent in Lead Cost resulted in $1.61 Revenue
- 2022- 2023= Every $1 spent in Lead Cost resulted in $3.78 Revenue
- Customer Service
- Past Due Rate
- Direct to Consumer 14.8%
- Affiliate Customers 8.7%
- Toco At Work 0.0%
- Customer Retention rates
- Direct to Consumer 87.6%
- Affiliate Customers 91.2%
- Toco At Work 95.6%
- Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 139 words used.
Links & Attachments
Thank you for reviewing Toco's submission for “Business Development Achievement of the Year”. We believe this entry outlines a culmination of successful program architecture, training, implementation, and results. We believe this submission provides a high-level overview of Toco's company and products, mission/values/vision, YOY achievements, employee & customer experience, industry comparison, challenges overcome, and supportive hyperlinks/ metrics/ attachments as evidence of our success.
- Briefly describe the nominated organization: its history and past performance (up to 200 words):
Total 181 words used.
Historical Performance
Toco Warranty historically marketed vehicle service contracts much like our competitors, a blend between traditional (radio, tv, billboards) and digital (social media, Google SEO, email) marketing efforts averaging a customer acquisition cost of $750-$383.
In 2022-2023, Toco Warranty revolutionized its business model, moving away from “Direct to Consumer” marketing and moving to a more efficient, effective, and exponential sales path. Toco expanded the business through partnerships, business development, and a new employee benefit product launch targeting brokers and employees.
These new lines of customer acquisition reduced costs, increased customer count, and grew brand awareness at scale. Volume enrollments reduce the product cost without sacrificing the coverage or service. Toco now projects customer acquisition costs to be $143-$174, a 72% reduction. Toco At Work is now offered to hundreds of thousands of customers across the US.
Toco has also partnered with OpenBay to provide up to 25% off maintenance services for our customers. Openbay also provides the ability to shop for and schedule services. This partnership gives Toco customers value outside breakdowns and offers the customer more well-rounded vehicle protection.
- Outline the nominated achievement since July 1 2021 that you wish to bring to the judges' attention (up to 250 words):
Total 250 words used.
Toco At Work
In 2022-2023, Toco Warranty pioneered another new program, Toco At Work, becoming the first to market the Employee Benefit version of vehicle protection. This new product is offered through employers as either an employer-funded or voluntary benefit with a payroll deduct. Toco At Work offers three coverage levels for employers or employees to select, and the contracts are administrated by the Stevie award-winning Toco Administration and Concierge teams.
Business Development
Toco employs multiple Business Development Executives who focus on partnering with smaller “mom-and-pop” style service facilities, offering them a new revenue source with very little lift on their ends. When a facility agrees to become a Toco affiliate, Toco supplies them with $150 in marketing material to post in their repair facility (standups, brochures, posters, etc.) and provides a $250 bounty for all completed sales.
Partnerships
In 2023, Toco landed three large partnership contracts that will go into effect in 2024, reaching almost twenty million marketable customers via email, in-store activations, and white-label services. These well-known businesses include one of Canada's largest retail companies, a Tire Subscription Retailer, and the largest automotive services company in North America who chose Toco as their partner after receiving bids from all 8 of the top competitors in the VSC space. These partnerships expand Toco’s reach beyond vehicle breakdown repair and into automotive retail, tires, and services (oil changes, car wash, etc.). Toco won these bids based on a long history of customer satisfaction, operational efficiency, and a commitment to excellence.
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