How Product Protection Fits Into Your Omnichannel Customer Experience — And Improves Profitability
The most successful merchants adapt to changing customer needs and buying behaviors.
Omnichannel marketing, where various communication and sales channels are integrated to create a seamless customer experience, first hit the scene more than a decade ago. It’s since grown in popularity to the point that customers now expect it: 72% of consumers expect a retailer to know their purchase history, no matter the channel.
As a result, adopting an omnichannel strategy brings a high return, with 89% customer retention for businesses that have embraced omnichannel. Pair that high retention with a 9.5% increase in annual revenue, and it’s not hard to understand the value of an omnichannel workflow or strategy.
An effective omnichannel strategy applies to the total customer experience, including value-added services like product protection. Extend partners with a number of retailers that have embraced an omnichannel approach for selling protection plans — and seen impactful results.
Online product protection offers drive purchases and peace of mind
Perhaps the most expected channel for ecommerce product protection offers is online through a retailer’s website. It’s also arguably the easiest sales channel since online offers don’t require human sales training.
With an experienced team of implementation experts and a flexible, API-first platform, Extend offers are easy to launch and conveniently placed on an ecommerce site. To maximize online product protection sales, a general rule of thumb is to place offers in three locations: on the product description page, in an interstitial modal that pops up when a customer adds a qualifying item to their cart, and in the cart itself.
This ensures that customers have multiple opportunities to review their options and understand the full value of the protection plan that’s offered by a merchant.
One ecommerce appliances retailer has taken advantage of all three Extend offer placements for accidental damage from handling (ADH) protection plans.
As a result, they’ve seen an 11% sitewide increase in conversions, as well as a 12.4% attach rate of protection plans on product purchases.
This merchant is improving their margins with incremental revenue from protection plan sales. They’re also giving their customers peace of mind that their products will be protected from drops and other accidental damage.
Protection plans sold in-store help retailers stand out from the competition
Offering product protection plans in retail stores enables merchants to serve customers in an engaging, personal manner. Many customers prefer to do research online and then go into physical stores to make their purchase. That way they have a chance to hold an item in their hands, speak with an expert, and have their questions answered.
In-store protection plan offers give customers the chance to talk to a sales associate about the benefits of product protection, especially as it relates to specific items.
For example, a large auto parts retailer valued at around $12 billion was struggling to differentiate themselves from the competition and retain their customers. They wanted to give customers more options and a better customer experience, so they activated in-store offers with Extend.
They went live with in-store product protection in nearly 4,000 locations across the US.
To date, they’ve sold more than 2 million protection plans, totaling more than $6.5 million in added revenue.
Extend’s value-added offering has given them a competitive edge and encouraged customer loyalty, as customers know they can get quality products and comprehensive protection whenever they visit a retail location.
Telesales extend the value of protection plans, increasing profits
When it comes to demonstrating customer support throughout the entire buying process, telesales remains one of the most effective methods. Not only does talking to customers over the phone help them feel more comfortable with their purchase, but it also gives telesales reps greater control over the support they offer — and their outcomes.
Take jewelry as an example: buying high-value jewelry is often the result of hours of research and weeks or months of saving. Telesales add value to a jewelry transaction throughout the buying process.
For example, customers can ask questions over the phone and obtain greater peace of mind, which helps nurture conversions since customers know that their valuable item will be protected.
Such was the case for a jewelry retailer with a $614 million market cap that sells protection plans on their website and has since added telesales to their omnichannel strategy. Adding telesales gave this retailer the opportunity to consult with customers and help them feel more confident in their purchase.
Since activating telesales from a single call center, this jeweler has sold more than 20,000 plans, leading to more than $6.2 million in incremental revenue.
Post-purchase email taps missed revenue opportunities for merchants
Using post-purchase email, merchants have a chance to capture additional revenue even after a purchase is made. For example, if a customer buys a product from a retail location but doesn’t add product protection to their purchase, they can still purchase protection within a specified period of time after their purchase. Email as a channel is incredibly powerful for driving post-purchase protection plan sales.
A popular home fitness company with a market cap of $4 billion enacted this strategy and has added a healthy stream of incremental revenue as a result. After a customer buys their fitness equipment, they’re often eager to get home and start using it immediately. This merchant has capitalized on customer excitement by using email to drive post-purchase engagement and protection plan sales.
To date, their omnichannel strategy has led to a 3% conversion rate and monthly protection plan sales averaging around $540K.
Drive incremental revenue and customer satisfaction with omnichannel protection plans
These merchant stories are just a few examples of how an omnichannel approach for selling product protection can drive profit and customer loyalty throughout the customer journey. And with Extend, retailers have expert support every step of the way and on every channel, whether it’s online, in-store, or via telephone.
Plus, Extend’s flexible, API-first platform is easy to integrate into any infrastructure and automatically maps every SKU, meaning that implementation is hassle-free and faster than the competition.
To get started with omnichannel product protection sales, click here to set up a demo.