Todd Anderson, Director of Bike and Powersports Gearheads at Extend partner Backcountry, is always looking for ways to put the customer first. It’s a common aspiration and continual effort for modern merchants.
Consider a recent customer issue: Backcountry shoppers provided feedback that their carbon mountain bike wheels were warping on their car racks due to their vehicle’s exhaust. The damage was in no way Backcountry’s fault, but Anderson still took ownership of the issue.
His solution? Offer a modern product protection plan that covers this unusual type of loss, allowing his customers to get back on the trails faster — while saving Backcountry $7 million in costs.
Backcountry isn’t the only company with customers who want product protection. Allied Market Research finds that the $120.79 billion global extended warranty market will hit $169.82 billion by 2027.
Not sure how to offer product protection? Start by looking at a few companies who do. These five brands bring shoppers peace of mind with Extend’s product protection plans. We tailor our plans for different industries, so merchants can keep the customers they worked so hard to gain.
David Contract, Marketing Team Lead at Extend merchant partner Baby Brezza, “wants to make parenting easier” with time-saving products. One of their popular items, the Formula Pro Advanced Baby Formula Dispenser, saves parents 30 minutes of feeding time per day.
But say a baby knocks over the formula dispenser and it breaks. The last thing busy parents want is to spend hours figuring out how to return or replace it. A 2018 Pew Research Center survey even found that 74% of U.S. parents with children under 18 sometimes felt too busy to enjoy life, compared with 55% of U.S. adults with older or no children.
Not to fear—Extend’s accidental damage protection plan has parents covered!
Extend’s plans cover appliances, electronics, and personal care products from an array of accidents that are a daily occurrence in a child-filled home. Plus, Extend rapidly adjudicates claims in 90 seconds or less, so the warranty process is convenient for busy moms and dads.
Ever lost your car remote or key? When this not-so-fun situation happens, the retailer Car and Truck Remotes is there to help consumers make a replacement.
The company’s founder Mariusz Sobanski noticed that other key companies didn’t offer product protection, even though people damage their keys all of the time. Sobanski decided to distinguish his brand by offering Extend plans to his customers.
“Most of our competitors do not offer warranties,” he says. “The fact that we can offer a warranty on a key is a good first impression for new customers.”
Because cars are long-term purchases, Sobanski knows that people are unlikely to remember where they purchased their additional remote keys. He sees Extend’s product protection plans as a valuable way to keep customers connected to his company.
“If a customer buys an extended warranty on a key, they’ll tend to keep that email or that receipt, so it’s a way for them to come back to us when they need a key for their new car,” says Sobanski.
And the revenue sharing from our plan sales? Icing on the cake.
For most people, mattresses aren’t a small impulse purchase. They’re expensive, and customers expect to use them for years. So naturally, many shoppers are uneasy about buying mattresses because they can be higher-ticket items.
Product protection plans ease this anxiety. When the shopper knows they can safely enjoy their mattress for the next decade at least, they feel better making such a big purchase.
Before Extend, small merchants like Bear couldn’t offer product protection plans because legacy insurance companies rarely invested in small retailers or insured mattresses. Plus, Steve Catanzaro—VP of eCommerce—only has a dozen full-time employees, so he doesn’t have enough manpower to internally resolve warranty claims.
That pain point is exactly what drew Catanzaro to Extend.
“[Extend] could respond to customers on claims almost instantaneously,” said Catanzaro. “That was a more progressive idea which Extend’s competitors didn’t have.”
Through Extend, Catanzaro offers a tailored product protection plan that covers accidental mattress damage for up to 10 years. The plan made economic sense to Bear, and its price made sense to Bear’s customers.
While Extend’s speedy resolution of claims is a huge customer benefit, it’s also a major plus for Catanzaro. He doesn’t have to worry about adjudicating claims himself, so he can focus more on what matters: selling really comfy mattresses.
Remember those Backcountry wheels that warped from the exhaust? Backcountry Director Todd Anderson wasn’t aware this was an issue until customers reported it to the company’s Gearheads. Shoppers asked if Backcountry could cover the loss since the manufacturer warranty fell short, so Anderson looked to Extend.
Extend created a plan for Backcountry called Launch Protect Plus that picked up where the manufacturer warranty left off.
According to Anderson, the plan was a huge value-add for their customers. Backcountry’s shoppers play hard, so inevitably their gear becomes so damaged that it can’t take another ride, climb, or hike. Extend’s plans cover their gear when those accidents happen. Plus the plan’s “lack of overhead” and “fantastic margins” made it an asset for the business.
He also found that his “long-term loyal customers” were most likely to buy the Extend plan. Why? Anderson believes the peace of mind that comes with knowing your product is covered keeps his customers coming back.
An engagement ring isn’t just any purchase—the customer is buying jewelry that their partner will wear for the rest of their life. It’s a major emotional and financial investment, to say the least!
Daniel Stoppel, Chief Strategy Officer for the jewelry retailer Jewlr, knows how much is at stake. He wasn’t satisfied with the company’s one-year warranty against manufacturing defects and workmanship. For a product expected to last decades, the warranty doesn’t go far enough.
Stoppel hoped that offering more product protection would attract new customers to the site. “We’re not a household name,” he says, “so we have many first-time shoppers."
"The more things we have to highlight our legitimacy, the more confidence we instill, and the more conversions we hope to drive," Stoppel said.
Thanks to Extend, Stoppel is seeing the conversions he hoped for. He reports that “revenue was better when we were showing Extend’s plans as options as opposed to when we didn’t.” The reason? Stoppel saw a marked increase in order values when customers purchased an Extend plan.
It doesn’t matter how much your company prioritizes product quality—accidents happen, and customers will need to make exchanges. Shoppers understand this reality, so many are uneasy making online purchases without some sort of product protection.
Extend plans give customers the confidence they need to click “Buy Now.” Our plans also handle the claims process, so merchants don’t have to worry about quickly resolving warranty issues.
If you’re looking to offer your customers the added value a product protection plan can provide, contact us here.