Customers who buy warranties keep coming back. Here’s the data
In today’s competitive retail landscape, customer retention is an increasingly important metric in order to both capture and keep market share. In order to boost customer loyalty and ensure they come back, consider integrating insurance and warranty into your customer’s purchase path. Studies and our partnerships with some of the world’s largest ecommerce companies such as eBay have demonstrated this claim.
Once customers make a retail product insurance purchase, there is a strong likelihood of a repurchase – 82% of people who bought insurance from a retailer would buy it again in the same way in the future*. This results in increased ancillary revenue, and overall CLTV (Customer Lifetime Value).
Including an insurance/warranty offering can further boost customer engagement, as these protection products can be auto-renewed or set as a subscription service to ensure your customers keep coming back. By introducing and implementing more touchpoints with the customer, you provide an opportunity to increase revenue. Also, this renewable revenue stream results in a higher CLTV.
In addition, partnering with insurtechs like Cover Genius can generate higher customer satisfaction and loyalty. This is because we have much higher NPS scores (+65!) than traditional insurers, given our simple and speedy claims process via XClaim. A positive claims experience without any headaches ensures that your customers will keep on purchasing insurance/warranty at the checkout!
Overall, adding an insurance or warranty offering helps you retain your customers and guarantee long term loyalty. However, there are multiple other benefits such as increased customer engagement, higher CLTV, and a higher NPS.