It’s November. Some people are just starting to think about the holiday season. But for nimble retailers, it’s the time of the year to make any final changes to holiday season plans.
It won’t be surprising to hear that Black Friday is the single biggest spending day of the holiday season. U.S. shoppers spent a whopping $62 billion during Cyber Week 2021. Come the end of November, retailers have a lot of money on the line — sometimes it’s the difference between being profitable or not that year.
Most of you will be well into planning to make the most of Cyber Week, which includes online spending from Thanksgiving Day through Cyber Monday. You’ve finalized ad buys, you’re writing email campaigns, and you’re optimizing your website so it can handle the crush of traffic.
You don’t have much time left to add new things to the mix. That’s why we’ll keep it simple: Offering product protection from Clyde can seriously boost your margins this holiday season, and it only takes about a week to launch. Here are four incredible reasons why you should put product protection at the top of your wishlist tomorrow:
133% increase in revenue from product protection plans sold
We’ll start with a top-notch metric that will impact your top-line revenue.
Last year, Clyde customers saw 133% more revenue from product plans during Cyber Week than they did the week before.
One more time: 133% more revenue. And that’s just from product protection plans. BFCM is a busy time of the year for product sales in general, and our numbers show that that’s true for extended warranties as an offering, too.
Revenue on its own is great — but that specific revenue is also unlocking customer lifetime value and loyalty, which means it’s the gift that keeps giving.
2.8x more product plans sold week-over-week
The way people think about the goods they’re purchasing is changing. More than 70% of consumers from Gen X to Gen Z rank a company’s commitment to sustainability as more important than its brand recognition. Consumers want to buy greener and buy less while shaping their identity through their purchases.
Add to that the economic pressures that are looming, consumers are being extra thoughtful about where they spend their money (and what it says about them).
Those factors, plus a step-change in the way product protection is designed (making it more customer-centric and less confusing) have meant that product protection plans are more popular than ever. People like having the option of repairing a product or replacing part of it over the environmental and financial waste that comes with repurchasing a product. And they will seek it out. Last BFCM, Clyde customers saw 2.8x more product plans sold during Cyber Week and we expect to see similar results this year.
Shoppers know they want product protection plans, and they’ll be looking for retailers who can offer them.
18% increase in transactions that included a product protection plan
Most ecommerce businesses hit daily transaction highs on Black Friday. In 2021, we saw that for Clyde customers as well — not only for their own products but also for transactions that included a product protection plan.
Compared to regular sales days, 18% more transactions for Clyde customers included a protection plan on Black Friday and Cyber Monday.
That could be because shoppers were buying presents and wanted to give something else on top of their gift: the peace of mind that their recipient would be covered in case of a product issue or accidental damage.
Or maybe shoppers were buying big-ticket items and wanted to make the most of that purchase. In fact, people who typically don’t buy product protection plans often look for them during holiday shopping due to larger-than-normal purchases. Either way, holiday season shopping makes people want to buy product protection and Clyde’s brand-native prompts and seamless integration process can make that easy.
’Tis the season for standing out to your discerning customers. Offering product protection with Clyde can help. Sign up for a demo today and see how we can help you own the post-purchase experience through Black Friday and beyond .
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