Time and time again, shoppers turn to product protection plans to cover their expensive purchases. Our latest consumer study digs into why and what impact it has on the shopping experience. We surveyed 1,500+ US adults about when and why they purchase product protection, and what impact that has on their relationships with brands.
Read on for the highlights or download the full study here.
Product protection: Another reason to choose a brand
47% of shoppers would be more likely to choose a brand if they offer product protection plans, and 32% would not make a purchase if the brand didn’t offer protection plans.
Product protection plans--also known as extended warranties or service plans--help consumers feel more confident that their purchase will last as long as intended, even if there’s an unexpected accident. Particularly with expensive purchases, consumers may keep searching until they find a brand that will offer a protection plan for that item.
But the impact of product protection doesn’t stop at checkout. If a customer ends up filing a claim and has a positive claims experience, 81% of those consumers would be more likely to recommend the company/product or to make another purchase.
A mishap with a product—whether a defect or an accident—can leave a customer frustrated. But that moment of frustration can be turned into delight with the way the issue is handled. If the claims experience is positive, it’s beneficial all around. Not only is the customer’s issue resolved, allowing them to enjoy the product for its lifetime, but the brand gains a happy customer for the long term.
The problem with product protection today: Offers too little for too much
Product protection has been around for a long time, but it has historically left consumers unsatisfied. The key reasons? Offering too little coverage for too high a cost.
Price is by far the #1 deterrent to purchasing a protection plan—customers feel they’re often just too expensive to be worth purchasing. Plan coverage and price are the two most important aspects to shoppers when they consider buying a plan, even more than brand trust.
Want customers (and your brand) to realize the full benefit of offering product protection? Take a close look at what you’re offering and at what price.
Parents of all kinds especially desire product protection
Parents—of tiny humans or animals—are among the shoppers most interested in product protection. And it makes sense—when it comes to accidents, there are plenty to go around in those households.
More than nine out of ten (91%) of consumers with kids and 82% of those with both kids and pets were likely to buy a product protection plan, compared to only 74% of child-free and pet-free consumers.
When it comes to winning over customers, product protection can be a significant benefit for retailers that both results in a purchase and builds a long-term relationship.
But it’s not enough to simply offer the plans—you also need to offer comprehensive coverage at a compelling price and deliver a great experience if an issue leads to a claim.
Customers know what they want in product protection. Offering it is how you win over loyal customers.
To review the full results of the study, download the PDF here.