Extend Helps Tech Brands Like Oura Do Product Protection Smarter
Technology and fitness go hand-in-hand. What would exercise be without wearables, digital guidance, virtual reality, fitness trackers, smart cardio equipment and streaming fitness classes?
But with technology comes a price tag, and inevitably, mechanical and electrical glitches and breakdowns. Parts may need to be repaired and replaced after wear and tear. Further, items purchased online can be damaged, lost or stolen in transit.
So, a critical piece of the sale process for tech brands is product protection. It’s a necessary evil. Brands must offer peace of mind to consumers who are laying out $200, $300, or $500-plus for a piece of equipment or a wearable.
But what if there was a product protection program that flipped the script? That reimagined antiquated extended warranty and shipping protection programs by eliminating many of the issues customers face with legacy providers, boosting customer confidence and retention. What if it even drove incremental revenue?
Oura CEO Tom Hale shares how integrating the right protection plan can empower brands as well as their customers
Technology and fitness go hand-in-hand. What would exercise be without wearables, digital guidance, virtual reality, fitness trackers, smart cardio equipment and streaming fitness classes?
But with technology comes a price tag, and inevitably, mechanical and electrical glitches and breakdowns. Parts may need to be repaired and replaced after wear and tear. Further, items purchased online can be damaged, lost or stolen in transit.
So, a critical piece of the sale process for tech brands is product protection. It’s a necessary evil. Brands must offer peace of mind to consumers who are laying out $200, $300, or $500-plus for a piece of equipment or a wearable.
But what if there was a product protection program that flipped the script? That reimagined antiquated extended warranty and shipping protection programs by eliminating many of the issues customers face with legacy providers, boosting customer confidence and retention. What if it even drove incremental revenue?
Extend is a product protection platform launched in 2019 that is working to do just that. The brand has partnered with over 800 manufacturers across a range of industries, including fitness and wellness.
Oura Chooses Extend
We were intrigued here at Athletech News, so we spoke to Tom Hale, CEO of leading health wearable company Oura, which has aligned itself with the platform, to ask him, “Why Extend?”
“At Oura, we believe in using technology to solve problems. Previously, protection plans made it hard to process claims, perhaps purposely so that people wouldn’t bother with the hassle,” Hale told ATN .“We realize the value of protection plans – and in earning the trust of our members – by making the claims process as frictionless as possible. Based on our work with Extend, it seems that the trends are changing and we’re happy to see it.”
“We were impressed with Extend’s reputation as a top product and shipping technology company and knew that a partnership would bring value to our members,” the Oura CEO adds.
About Extend: Easy Claims & Incremental Revenue
The Extend Protection Plan begins when the manufacturer’s warranty ends. Its AI-driven technology resolves claims and offers speedy replacement or reimbursement resolutions for customers online.
“We’ve found that by enabling quick repairs or replacement, the Extend Product Protection Platform offers peace of mind and helps our members have confidence that this investment will serve them for many years to come,” Hale says.
Further, tech brands can drive incremental revenue with Extend’s unique model that kicks back a portion of each protection plan sale. Manufacturers also save on replacement costs and customer support overhead.
Reducing Customer Acquisition Cost
Oura’s partnership with Extend also encompassed a co-branded Facebook and Instagram campaign featuring Extend Product Protection messaging.
“We wanted to compare the impact and efficiency of the Extend Product Protection messaging to our existing brand benchmarks,” Hale says of the social media effort. “So our teams worked together to build a marketing campaign.”
The campaign – which addressed consumer concerns and potential reservations associated with buying an Oura Ring — led to significant reductions in overall Customer Acquisition Cost (CAC) and “was so successful, we kept them in the market for over eight months,” Hale notes.
Customized Plans
Extend’s technology matches products to customized plans to ensure customers have the right protection after the manufacturer’s warranty runs out.
Hale told ATN that when completing the Oura checkout process, customers have the option to upgrade for a one-time fee to a two- or three-year protection plan, which covers the items offered in the one-year manufacturer warranty plus a host of scenarios ranging from breakage from drops, cracks and collision to damage from power surge or electrical failures.
“For our business, we’re able to leverage Extend’s industry expertise to offer the extended warranty and satisfy the range of regulations that govern these programs, so that we can focus on our core business,” Hale says.
Read the article on the Athletech News website.
