In a fast-paced, competitive ecommerce environment, retailers are looking for any way to differentiate themselves. Loyalty programs, seasonal sales, and extended warranty offers are some of the key ways retailers use to get a step ahead of the competition.
With a variety of options available, retailers want to make sure they’re investing in differentiators that add value, rather than devalue, their brand.
Here are 3 key things an extended warranty does to add value to your brand:
1. Creates a Holistic Protection Program
By offering an extended warranty alongside a manufacturer’s warranty, a customer is given full confidence that their product will be covered. Limited warranties are limited by design to ensure that a customer is covered in the event that the product just stops working. However, life still happens when customers are using a product, and limited warranties typically don’t cover those types of damages.
This is where a third-party extended warranty provider can come into play. Consumers can’t control if their pet has an accident on the rug or if coffee spills on their laptop while working from home. Common accidents like these would be covered by an extended warranty. By offering product protection, retailers can improve the customer experience and improve brand loyalty.
2. Leverages Expert Customer Service
As a retailer, the customer is your past, present, and future and the ultimate key to growth & success. When something goes wrong, you want to be the main point of contact with the customer to help them resolve their concern. Maintaining an in-house claims team can be costly, time-consuming, and spread out resources that could be put toward growing your business.
For businesses looking to provide an excellent warranty customer service experience, partnering with a warranty specialist can be the solution. Third-party extended warranty providers can provide a unique perspective because they have extensive experience handling claims across verticals. They can leverage their expertise to help troubleshoot problems, resolve claims, and ultimately make the customer whole.
3. Capitalizes on Ecommerce Ghosts
Ecommerce customers abandon their carts for a variety of reasons. When a customer goes to purchase an item and isn’t offered product protection, they’re more likely to leave the site and look elsewhere. We call these customers "ghosts". They’re a key demographic of customers who are critical to both your brand perception and revenue stream. Retailers who fail to offer product protection are often missing out on giving these customers the experience that would help them feel confident in completing their purchase.
Customers are growing more tentative in increasingly saturated industries. They want to make sure that they are getting the most value in their purchase. The robust manufacturer’s warranty that you’ve worked to create and uphold is one step towards assuring them. To that demographic of would-be ghosts, an addition of an extended warranty is critical to keep them on your site and increase conversion rate.
Increase Your Brand Value Today
With the ability to offer holistic product coverage, customer service expertise, and capitalize on ecommerce ghosts, extended warranties can add a lot of value to your brand. All three of these pieces are important to consider as you evaluate whether to implement an extended warranty offering to your retail customers. These three points demonstrate why an offering like this will enhance your customer experience by driving confidence.