The Retail Protection Report:
Shoppers want product protection directly from their favorite retailers, manufacturers, and payment apps, and are willing to pay more for the convenience of adding protection at checkout and post-purchase
When it comes to e-commerce experience, product protection is often overlooked by consumers until it’s too late — their item breaks or gets stolen from their doorstep.
In our survey of more than 11,400 global consumers, most respondents (76%) said they wanted to buy product protection directly from their favorite brands (retailers, manufacturers and payment apps), both within the checkout journey and post-purchase.
This presents an opportunity for brands to meet consumer demands for peace of mind while shopping. The Retail Protection Report: Consumer Insights and Key Takeaways for Retailers, conducted by SurveyMonkey and commissioned by Cover Genius, explores consumer experiences with product protection across 12 countries: the United States, Mexico, Brazil, Sweden, Germany, France, the United Kingdom, Poland, Spain, Australia, India and South Korea.
Consumer demand for product protection
The majority of consumers surveyed globally expressed interest in receiving protection offers from their favorite retailers, manufacturers and payment apps, with the primary reason being the convenience (55%) of adding protection either at checkout or post-purchase.
Not only do consumers want product protection from their favorite brands, but they’re also willing to pay an average of 21% more to secure it. Consumers are eager to invest in a sense of security while shopping, presenting an opportunity for retailers to grow revenue simply by offering the right protection at the right time.
When considering protection for future purchases, consumers are more likely to safeguard high-value items and mitigate risks associated with product defects, damage, or loss. In fact, the most popular categories that consumers chose to purchase product protection for are Personal Electronics (65%), Home Appliances (52%), and Luxury Goods (34%).
Offering the right kind of protection
Consumers primarily buy protection to mitigate potential repair and replacement costs. Although they often have a wide variety of product protection options to choose from, the most popular type of protection is Extended Warranties. 56% of consumers indicated that Extended Warranties were their most frequently purchased type of protection, followed by Shipping protection (17%).
Many retailers, at a minimum, offer their customers a basic Extended Warranty, but to increase conversions, brands should look to bolster their protection programs with features their customers want. 60% of survey respondents said offering a combination of coverages (e.g. shipping protection, accidental damage, return protection, etc.) would increase their likelihood of buying protection. For retailers, this could signify opportunities to reduce cart abandonment rates, while maximizing customer lifetime value.
A peek inside the claims experience
Purchasing protection is just a part of the customer journey. To drive satisfaction, brands must ensure an easy and frictionless claims experience. Positive claims experiences not only have a reputational benefit but also encourage the majority of consumers (87%) to recommend them to a friend.
Brands need to put in the effort to proactively improve their claims process to grow customer loyalty and repeat business. Fast claims times, a hassle-free submission process, and other factors like timely resolutions can positively impact the customer experience and ensure your brand is top of mind for future purchases.
