Navigating an uncertain market with product protection
Car and Truck Remotes’ sales are closely linked to the performance of the auto industry. In 2021, auto sales slowed due to a disruption in the supply chain caused by the global resurgence of COVID-19. This pushed Car and Truck Remotes to seek innovative solutions to generate additional revenue and stay a step ahead of their competition.
Mariusz Sobanski, GM of Car and Truck Remotes, keeps a close eye on consumer trends to ensure his company is always putting customers’ needs first. He noticed that product protection is becoming more ubiquitous across retailers of all sizes and felt that, as a value-added service, it was important for Car and Truck Remotes to start offering product protection to their customers.
“Product protection isn’t just a trend,” he said, “but a must-have for merchants looking to remain competitive.”
And as a business that isn’t yet a household name, Car and Truck Remotes needed a way to instill further consumer confidence in their products and keep customers coming back for future purchases. So Mariusz started looking for a product protection partner who would not only deliver best-in-class coverage, but an elevated customer experience.
Expanding value-added services to improve the customer experience
Prior to partnering with Extend, Car and Truck Remotes offered a 90-day warranty. This caused friction for any customers who reached out to their customer service team after the warranty expired, and put Car and Truck Remotes in the difficult position of having to decide whether to eat product costs to do right by their customers. It was too costly and resource-intensive for the company to expand their own product protection program in-house, so they sought out a third-party partner for help. After looking into Extend’s product and speaking with the team, Mariusz felt confident he’d found the perfect match.
The unparalleled benefits of Extend
Responsive, supportive customer service
From his first interactions with the team at Extend, Mariusz was so impressed with the communication and support he received that he didn’t feel the need to consider any other potential partners.
“Our conversations with Extend’s customer support team sealed the deal for me,” he said. “You rarely hear a company say they’re going to go the extra mile for your customers. Usually companies draw a clear line in the sand about what they will and won’t do, but knowing that Extend wasn’t going to be just another 1-800 customer service number that people hate to call made me confident that our customers wouldn’t be disappointed with them.”
Staying ahead in a highly competitive marketplace by building brand trust
While retail giants like Walmart and Amazon can comfortably offer product protection, Mariusz noticed that nearly all of Car and Truck Remotes’ smaller competitors don’t offer product protection. Partnering with Extend has given the brand a competitive advantage and is helping them build a strong brand reputation of trustworthiness and reliability. And thanks to Extend’s streamlined claims experience, Car and Truck Remotes customers who’ve filed claims are staying within the brand’s loyalty loop by adding protection to their replacement items.
Driving customer loyalty: from transactional to relational commerce
Car and Truck Remotes initially struggled to own the post-purchase relationship. By the time a key or remote fails — which usually happens years after it was purchased — customers often forget where they purchased it from. But with a product protection plan from Extend, when a key or remote gets damaged, customers are coming back to Car and Truck Remotes for a replacement — keeping the customers within their brand ecosystem.
Generating incremental revenue with no additional inventory
Revenue increased by 7.9%, overall attach rate is 9.7%
After only a month of partnering with Extend, Car and Truck Remotes achieved record sales and increased revenue by 7.9%. They’ve also been able to generate an additional income stream through Extend’s revenue share model. Their overall attach rate is 9.7%, which has provided a substantial source of passive income without requiring them to stock additional inventory.
Increased consumer confidence has boosted AOV by 7.5%
Thanks to an increased level of trust and confidence in Car and Truck Remotes’ products, customers now feel more comfortable purchasing higher-cost items and more items in a single purchase. As a result, Car and Truck Remotes’ AOV has increased by 7.5%.
Car and Truck Remotes customers are now buying with the peace of mind that they’re protected against accidental damage and unexpected mishaps. That sense of security has positioned Car and Truck Remotes as a trusted industry leader in both replacement keys and remotes and exceptional customer experience. Life happens — Extend helps keep it a smooth ride.