3 Steps to Increase Online Warranty Sales
It’s projected that there will be more than 230 million online shoppers by 2021, an increase of nearly 21 million consumers over a five-year span. As the ubiquity of ecommerce grows and opportunities for in-person interactions decline, adequately educating consumers on products and services will become increasingly more challenging—particularly when it comes to communicating the benefits of protection programs.
To be sure, online warranty sales can be a huge value-add for retailers. But to really give their warranty program revenue a boost, retailers should consider three important strategies that can help ensure consumers understand the benefits of extended protection.
Educate Them Up Front
Want to help shoppers fully grasp the value of protection plans? Communicate the benefits of warranties throughout the online shopping experience. Instead of only offering protection plans as an afterthought or throw-in at checkout, retailers should suggest them alongside product descriptions when a consumer initially clicks on an item. This way, customers see warranty messaging while browsing early on and will associate the protection with the product.
If warranty protection plans are only positioned as an “upsell,” low conversion rates will remain the norm. However, if relevant messaging is present throughout the shopping experience, you can familiarize customers with the value of protection well before the point of purchase.
Consider Website Updates
In one recent survey, 71 percent of consumers cited a ‘good online customer experience’ as critical, and 70 percent claim they won’t return to a website after a negative experience. With an informative and easy-to-navigate website structure, consumers are more likely to reach checkout without confusion and frustration, and less likely to leave the site before finalizing their purchase.
Curious how your website stacks up? Answering the following questions can provide insight:
- Does your website have an appealing and modern look and feel?
- Does your site accurately reflect the true nature and personality of your business and your team?
- Does your site offer a warranty landing page that provides clear explanations of the policy terms and conditions?
- Is your site a constant and measurable source of new customers, additional business, and increased revenue?
- Does your site connect with your customers’ needs, desires, and outcomes versus being an online brochure? And…
- Is your website mobile optimized? In other words, is it properly structured for simple viewing and navigation on a smartphone without increased difficulty or reduced legibility?
Your answer to that last question is absolutely essential. More than half of internet traffic is on mobile, and that’s expected to grow to 75 percent this year. If you’re not already on board, consider adding a mobile strategy for viewers to easily access and experience your site, your products, and your protection programs.
Find the Right Partner
We get it: small and mid-sized retailers may not have the time or resources to implement a full strategy to market warranty offerings online. But with a vertically-integrated partner retailers can easily access the support they need—from underwriting and compliance, to administrative and marketing support—to seamlessly and efficiently cater to their customers.
A partner who can also deliver ongoing tech support? Well, that’s even better. With the increase in complexity of today’s smart home and business technology, as well as integrated automation, a helping hand from a tech support team that’s always readily available becomes a huge value-add for your customers.
The Long-Term Benefit
Retailers who take the time to implement an online warranty sales strategy now can enjoy benefits long term. An investment in product protection has been shown to boost customer satisfaction. Plus, warranties offer a major opportunity for retailers to bring in some serious cash. How much? Warranty Week puts the U.S. service contract market at $40 billion annually, and retailers like Best Buy claim that as much as four percent of their annual revenue is gleaned from protection plans. Not bad.
From an additional line of revenue to increased customer retention, a clear online warranty strategy can help set you apart from the competition and let customers know you’ve got their back.