Businesses must continually adapt to emerging trends to stay competitive, and with the evolution of technology, the way customers shop has undergone a significant transformation. This transformation has a direct impact on various aspects of retail, including the sales of extended service contracts.
At Centricity, our experts keep close tabs on industry trends so you can adapt quickly and meet the needs of your customers ahead of your competitors. Here, we recap several current retail trends and how they can influence your extended service contract sales:
- E-commerce Boom: With the convenience that e-commerce offers, traditional brick-and-mortar retailers face significant challenges. Consumers now have access to a wide range of products and services at their fingertips, and physical stores must convey the added value they provide to customers in order to compete for business. Online shoppers may be more hesitant to purchase products that don’t offer extended protection plans. Online retailers should offer product protection throughout the buying journey including on all relevant product pages, and pop-up offers at the shopping cart if customers forgot to add a service contract. Retailers should focus on their most compelling channels to present and emphasize the value of extended service contracts.
- Personalized Customer Experiences: Today’s customers expect personalized experiences tailored to their individual needs and preferences. Retailers should be tracking customer data and analytics to understand their target audience better and offer customized product protection. By highlighting coverage that aligns with each customer, you can increase attachment rate of extended service plans.
- Technological Advancements: From smartphones to smart home devices, consumers are investing in high-tech products with complex functionalities. This shift creates an opportunity for customers to realize the benefits of product protection. Retailers can position these contracts as essential to maximize the lifespan and performance of their technologically advanced purchases with technical support included as an added benefit.
- Sustainable Consumerism: Consumers are increasingly conscious of their environmental impact and seek products and services that align with their values. Extended service contracts can play a role in this trend by promoting repairability and reducing electronic waste. Retailers can highlight the eco-friendly benefits of service contracts, such as facilitating repairs instead of encouraging premature replacements.
While extended service contracts have long been offered by retailers, simply having extended service contracts available for purchase is no longer enough to generate sales. To effectively capture customer interest and drive conversions, retailers must proactively adapt their sales strategies.
With more than four decades in the retail industry, Centricity understands that the success of extended service contract sales hinges on the ability of retailers to align their offerings with prevailing retail trends.
To learn more about how Centricity can help your retail business grow, visit our website or contact us today.