How Well Do You Know Your Customers?

Studies show that consumers complete most of their buyer’s journey before they contact retailers. In fact, the latest research since the onset of the pandemic indicates that many buyers delay contacting sellers until they’ve made up their minds on the purchase.

Consumers often will research solutions, rank the options that fit their needs and even establish the price they are willing to pay before they engage in their first conversation with retailers.

So what does this mean for retailers who want to sell product protection to consumers at the time of purchase?

Understanding customers’ needs and orienting your brand’s marketing toward answering their problems will engage prospects throughout their buyer’s journey.

Here are six tips for guiding the customer journey to ensure that product protection is including in a buyer’s final decision:

  • Retailers should make sure that product protection is prominently displayed on their eCommerce website. Shoppers should have a seamless way to read about the benefits of the program before they add something to their cart. Optimizing your online experience to include extended service contract options even during a consumer’s research process will speed their buying process and ensure products are protected from the point of sale.

 

  • Be sure to promote product protection in all your marketing efforts whether it be social media, videos or printed brochures. Millennials and younger buyers often make their decisions based on customer reviews and recommendations.

 

  • Communicate the benefits of an extended service plan by explaining the custom service benefits a consumer receives such as food replacement if a refrigerator fails or laundromat reimbursement if a washer or dryer breaks. Consumers will be able to visualize themselves using these perks.

 

  • Your sales team should be confidently recommending extended service contracts to their customers early and often in the buying process. If consumers have questions about the features and functionality of a product, make sure they know that product protection is available for purchase.

 

  • Understand your target audience and what motivates them to purchase specific products. Whether your most likely consumers are early adopters of new technology, Baby Boomers or women can affect what inspires each group to value your products. The more a consumer treasures a product, the more likely they will want to protect it.

 

  • For any customer that missed extended service plans during their research or at the time of the sale, make sure you are offering product protection even after their purchase. This can be an important revenue stream for retailers, and make customers feel valued. It’s Best Practice to charge a higher retail price if selling the extended service contract after the purchase. This incentivizes customers to add the product protection at the time of sale.

 

Plan to maximize revenue from extended service contract sales by implementing these tips. You’ll build customer loyalty that lasts a lifetime and grow your business.

Centricity partners with retailers and manufacturers to provide customized product protection solutions that drive revenue and result in loyal, happy customers. If you want to learn more about product protection plans and customized implementation and training for your team, contact us today.