Background
Founded in 2012 by Zhifei Li, Mobvoi set out to define the next generation of human-machine interaction. Starting as the first Chinese firm to build voice recognition technology, Mobvoi expanded to launch their first consumer electronics product in 2016: the TicWatch.
Since then, Mobvoi has exploded into a billion dollar global retailer with a strong presence across Asia, Europe, and North America. Mobvoi offers best-in-class consumer electronics products ranging from smartwatches and earphones to treadmills and smart home accessories.
Challenge
As their products grew increasingly popular in China, Mobvoi looked to expand globally. While evaluating the US market, Mobvoi noticed that many of their competitors offered product protection on their websites. “The majority of consumer electronics retailers in the US were offering some kind of extended product protection to their customers,” said Michael Wang, Senior Product Manager. “We saw that many prospective customers were choosing to purchase from those other retailers because they got some additional peace of mind in the form of long-term protection plans.”
For these shoppers looking to purchase wearable electronics products that they would likely use on a daily basis, additional protection was clearly top of mind. To stand out in the market and increase conversions on-site, Mobvoi needed to match this offering and find a way to offer even more value to their customers.
“Working with a partner who could guide us through the product protection space was very important to us. With so many consumer electronics retailers offering product protection already, we needed to hit the ground running with our program.”
- Michael Wang, Senior Product Manager
Solution
Mobvoi decided to partner with Mulberry to give their customers access to best-in-class coverage and customer service. While competitive protection plans simply covered product defects, Mobvoi worked with Mulberry to go beyond extending the manufacturer warranty. They ultimately launched a program that gives their customers protection against accidents including drops, cracks, collisions, and more, in addition to protection against product defects.
“Implementing Mulberry was quick and straightforward for us both technically and strategically,” said Wang. “Not only was Mulberry’s technology easy to integrate into our on-site experience, but also the Mulberry partner success team was extremely helpful guiding us through the process of launching our first product protection program.” Beyond support with the technical integration, Mulberry served as a consultative partner guiding Mobvoi through the more strategic elements of their launch. Working closely with the Mobvoi team, Mulberry conducted competitive and industry research on pricing, coverage, and merchandising to help Mobvoi go-to-market with the best possible offer. Mulberry and Mobvoi decided on a go-to-market promotion along with the launch that would drive awareness of the product protection offering by giving customers one year of accident protection for just $1.
Results
When Mobvoi ultimately launched their accident protection program, they immediately saw sales increase for their US site. “From customer reactions to the new protection plans, it was clear that some of our US customers were hesitant to purchase without the additional peace of mind they could get with product protection,” Wang said.
Customers shopping on Mobvoi’s US website during the $1 product protection promotion were 30% more likely to purchase than before the protection program was launched. Even after the promotion, when product protection returned to more standard prices, Mobvoi enjoyed a higher conversion rate than before the launch, which helped them grow their presence over time in the US market.
“Offering product protection with Mulberry is a win-win situation for Mobvoi. With a single partnership we can give our customers top-tier coverage that they’re seeking out on consumer electronics products while also driving incremental profit for our business.”
- Michael Wang, Senior Product Manager
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