How to increase Average Order Value by 62%
How can you increase customer loyalty, AOV and overall revenue with a single solution? At Cover Genius, we partner with some of the world’s largest e-commerce companies such as eBay to do just this, all from offering a tailored insurance or warranty solution at the checkout.
Customers seek the value that a well crafted insurance policy brings, especially when they are purchasing high value items. When it came to these items that were valued at $500 or more, 87% of people purchased an insurance policy or warranty when it was offered*. This is because customers are willing to pay for a sense of security when it comes to protecting their valuable goods.
However, this doesn’t just apply for high value items. 48.4% of customers would buy more items online if they were offered insurance or warranty at checkout*, showing that customers are willing to pay to ensure their purchases are covered in the instance of damage or theft. This also drives loyalty as customers feel a greater sense of satisfaction that their retailer is providing peace of mind.
Global events such as the COVID-19 pandemic have also shifted customers’ perceptions of insurance products, where our studies showed a 1200% increase in attach rates (aka “conversion rates”) for insurance offerings across all verticals, including retail. As customers engage more with these protection products, retailers have the opportunity to increase their AOV by integrating insurance and warranties into the customer purchase path, thus increasing their bottom line revenue and resulting in CLTV uplift.
Overall, there is a vast benefit to offering your customers insurance or warranty at the checkout, given customers’ larger propensity to take out protection. By partnering with Cover Genius, we can help you explore how to increase customer loyalty, AOV and your bottom line.