In a fast-paced, competitive ecommerce environment, retailers are looking for any way to differentiate themselves. Loyalty programs, seasonal sales, and extended warranty offers are some of the key ways retailers get a step ahead of the competition.
With a variety of options available, retailers want to make sure they’re investing in differentiators that add value, rather than devalue, their brand.
Three ways an extended warranty adds value to your brand
1. It creates a holistic protection program
By offering an extended warranty alongside a manufacturer’s warranty, a customer is given full confidence that their purchase will be covered. Limited warranties are restricted by design to ensure that a customer is covered in the event that the product just stops working, but no more. However, life still happens when customers are using a product, and limited warranties typically don’t cover accidental damages.
This is where a third-party extended warranty provider like Mulberry can help. Consumers can’t control if their child takes a pen to the couch or if coffee spills on their laptop while working from home. Common accidents like these would be covered by a Mulberry extended warranty. By offering product protection, retailers can improve the customer experience and improve brand loyalty.
2. It leverages expert customer service
As a retailer, the customer is your past, present, and future and the ultimate key to growth & success. When something goes wrong, you want to ensure the customer's concern is resolved asap. Maintaining an in-house claims team can be costly, time-consuming, and especially challenging if you're running a lean team. With a product protection partner like Mulberry, your customer issues are our worry, not yours.
For businesses looking to provide an excellent warranty customer service experience, partnering with a warranty specialist can be the solution. Third-party extended warranty providers can provide a unique perspective because they have extensive experience handling claims across verticals. They can leverage their expertise to help troubleshoot problems, resolve claims, and ultimately make the customer whole.
3. It capitalizes on ecommerce ghosts
Ecommerce customers abandon their carts for a variety of reasons. When a customer goes to purchase an item and isn’t offered product protection, they’re more likely to leave the site and look elsewhere. We call these customers "ghosts." They’re a key demographic of customers who are critical to both your brand perception and revenue stream. Retailers who fail to offer product protection are often missing out on giving these customers the experience that would help them feel confident in completing their purchase.
Customers are growing more tentative in increasingly saturated industries. They want to make sure that they are getting the most value from their purchase. The robust manufacturer’s warranty that you’ve worked to create and uphold is one step towards assuring them. To that demographic of would-be ghosts, an addition of an extended warranty is critical to keep them on your site and increase conversion rate.
Increase your brand value today
With the ability to offer holistic product coverage, customer service expertise, and capitalize on ecommerce ghosts, extended warranties can add huge value for your business. All three of these elements are important to consider as you evaluate whether to implement an extended warranty offering to your retail customers. Talk to our team about how Mulberry can add value for your customers.
