NEW YORK, March 13, 2024 (GLOBE NEWSWIRE) -- Many retailers offer their customers a basic extended warranty, but to increase sales brands should look to add additional features to their protection programs, according to a new report from Cover Genius, the insurtech for embedded protection. The Retail Protection Report, surveying 11,408 global consumers across 12 countries, explores product protection experiences, revealing insights from consumers and offering valuable perspectives for retailers seeking to enhance their customer journey.
Sixty percent (60%) of survey respondents said offering a combination of coverage options (e.g. shipping protection, accidental damage, return protection, etc.) would increase their likelihood of buying protection. This could signify an opportunity for retailers to reduce cart abandonment rates and maximize customer lifetime value with robust protection offerings.
“We’ve seen firsthand that up to 83% of denied claims occur because of incidents that aren’t covered by an extended warranty. Yet, extended warranties, especially in the United States, are often all consumers are offered by retailers because it's the easiest to integrate,” said Angus McDonald, CEO and Co-founder of Cover Genius. “This data shows that customers want more from retailers, such as shipping protection in the case of package theft or accidental damage coverage for incidents like spilling coffee on a new laptop. Cover Genius enables our retail partners to easily integrate more comprehensive protection options through a single API, allowing them to meet customer demand without requiring additional investments in legal, technical, or other resources.”
Additional takeaways from The Retail Protection Report include:
- Consumers want, and are willing to pay more, for product protection: The majority of consumers surveyed globally (76%) expressed interest in receiving protection offers from their favorite retailers, manufacturers, and payment apps at checkout or post-purchase primarily because of convenience. Not only do consumers want protection from their favorite brands, but they are also willing to pay an extra 21% when considering product protection for their purchases. This presents an opportunity for brands to increase revenue per transaction simply by offering the right protection in the right place, at the right time, and at the right price.
- Consumers value protection for their most expensive purchases: Per the findings, consumers are most interested in protecting their high-value purchases (personal electronics, home appliances, and luxury goods), and are primarily looking to avoid potential repair and replacement costs. Extended warranties (56%) are most frequently purchased, suggesting consumers and retailers might be overlooking the value of accidental damage coverage, which provides additional coverage for repair and replacement costs.
- Consumers are more satisfied and will recommend a brand after a positive claims experience: Offering the right protection is just a part of the customer journey. The survey examined how brands can drive customer satisfaction, and found value in an easy and frictionless claims experience. The vast majority of consumers (87%) would recommend a brand they had a positive claims experience with to a friend.
The Retail Protection Report: Consumer Insights and Key Takeaways for Retailers, conducted by SurveyMonkey and commissioned by Cover Genius, surveyed more than 11,400 global consumers to explore experiences with product protection across 12 countries. Download the full global report and country-specific insights for the United States, Mexico, Brazil, Sweden, Germany, France, the United Kingdom, Poland, Spain, Australia, India and South Korea for more information.
About Cover Genius
Cover Genius is the global insurtech for embedded protection. Through XCover, its award-winning global distribution platform, it protects the customers of the world’s largest digital companies with seamless, end-to-end experiences. Licensed or authorized in over 60 countries and all 50 US States, the insurtech enables partners to embed and sell multiple lines of insurance and other types of protection, resulting in an industry-leading post-claims Net Promoter Score (NPS) and more than 30 million happy customers.
For more information, visit covergenius.com.
