Why Warranties Are About Customer Love, Not Fear
Extended warranties sometimes get a bad rap.
That’s often because it’s not always clear how they work. Some warranties turn up the risk aversion angle — ”you need this or else you’ll be screwed when something goes wrong” — which can unfairly play into customers’ fears about product failure.
But it’s not just that that fear exists; it’s that some companies actually lean into it. Northwestern University reported that people think that the products they purchase are two to three times more likely to fail than they actually are.
Other times, merchants themselves are the ones who shy away from offering them, because they don’t want their products to be associated, even obliquely, with issues.
But that leaves them at risk for losing customers if and when something does happen, either by accident or by product failure.
The extended warranty market as a whole is an experience that’s ripe for reinvention, which is why Clyde’s ownership enrichment platform reimagines the process on both sides, for merchants as well as their customers.
Centering customer love
When’s the last time you bought something that you really, truly loved?
There’s an old business saying that goes, “People don’t like to be sold to — but they love to buy.”
That’s because when we buy something, we’re completing a goal. Solving a job to be done. Think about these examples:
A burgeoning filmmaker who buys a laptop so she can edit her first feature length project
A dad who buys an electric hoverboard so his son can get his birthday wish
A retiree who buys a blender so they can make their favorite breakfast smoothies
A woman who buys a watch so she can celebrate her new job
Even if researching, choosing, and spending the money on the laptop, hoverboard, blender, or watch was a drag, having the thing — owning it, or preparing it to be gifted — is something to be loved.
Creating a great customer experience along the way confirms that your customers will walk away with their purchase happy and fulfilled, per PwC.
The consultancy found that 73% of customers say that experience is an important factor in their purchasing decisions, ranking higher than both price and product quality.
You can’t buy that kind of product awareness or loyalty — the same report found that 65% of customers say that a positive experience with a brand is more influential than the best advertising.
That’s why Clyde’s offerings, from purchase protection to product registration to issue resolution, are all about connecting people with the products and brands they love by creating simple, frictionless, customer-centric experiences.
Millennials and Gen Z build their identities through what they buy . It’s no longer enough to square up with your competition on price — retailers need to provide enjoyable product experiences in order to stand out from the crowd.
That can look like offering membership clubs or loyalty programs , hosting events, providing accident protection, sharing exclusive content, facilitating easy repairs and replacements, and more. But it needs to be something special.
Product protection falls into that bucket because it’s about supporting customer peace of mind — and thus securing their loyalty for life.
Offering extended warranties doesn’t mean you don’t stand by your products. It means you’re investing in yet another way to delight them: giving customers a safety net in case life happens.
Extended warranties often include accident protection. Who among us has not dropped a camera in water or driven over a toy?
And in the case that the issue does end up being something in the manufacturing of your product — don’t you want to stand by your customer’s trust in you by repairing or replacing it?
After all, these 25 brands that offer lifetime warranties are some of the most beloved in business, from Patagonia to Shinola. You don’t look at one of their tents or watches and think, “Oh, this thing comes with a warranty in case something happens to it? That definitely means it’s poorly made.” These manufacturer’s warranties (often called “limited warranties”) are, as the name implies, limited. For additional coverage, many beloved brands, such as Apple, offer extended warranties as well.
Clyde’s platform provides that peace of mind and enjoyable ownership experience with powerful tech that’s quick to set up and easy for merchants to manage. One dashboard keeps you updated on everything that’s going on.
How Clyde does it
Instead of cloaking extended warranty options in fatalistic, fear-inducing language, Clyde keeps things simple and clear for merchant and end purchasers.
It takes less than a minute to submit a claim, and there’s no fumbling with receipts or purchase orders — customers are prompted to register as soon as they receive your product or are automatically registered if they purchase an extended warranty, so all their information is pre-loaded.
Claims resolution happens quickly and often automatically, and can integrate with your existing customer success tools.
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