The math simply isn't adding up for retailers these days. The triple threat of inflation, supply chain breakdowns and widespread labor shortages, have driven up operating costs and eroded margins for retailers of all sizes. So what can merchants do in the short term to avoid passing those costs down to customers?
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Ben Rayas, Clyde’s Director of Program Management, has spent the better part of the last eight years becoming a leading voice within the warranty industry. Dating back to his time at SquareTrade, Ben has tracked the evolution of warranties from an effective offering in brick-and-mortar environments to a valuable customer loyalty tool being utilized by eCommerce merchants of all sizes.
In our half hour discussion, Ben explained how products like AppleCare and the Buy-Now, Pay Later revolution have enhanced the effectiveness of warranty programs and why companies can now rely on warranty programs to drive down costs. With operating costs soaring for merchants, this is a can’t-miss conversation.
If you'd prefer a quick list of topics that Ben discussed, scroll below for our top three takeaways.
1. The Value Of Repairs
When factoring in raw material costs, warehousing, shipping, and unavoidable market conditions that are slowing down claims resolutions, merchants are taking a closer look at the viability of repairs over replacements. Sending a repair professional to a customers home or connecting them with a local repair shop is one way brands can shrink resolution windows from weeks to days for customers. But the potential to delight your customers extends beyond those two options into what Ben refers to as "digitally-assisted repair." You can heard him explain it below.
2. Expanding Your Customer Data Pool With Registrations
Customer data is the lifeblood of any retail business. As a merchant, you can pay to acquire that data or you make sure that you're collecting it properly from the customers who buy and use your products. The latter, also known as first-party data can shape future product decisions, inform marketing campaigns, and streamline communications around recalls, replacements, or repairs. For more on this topic, check out our recent deep dive into registration data, and the best practices to acquire it .
3. Lowering Your CAC With A Warranty Program
Tracking your customer acquisition cost over time is a good way to gauge the health and long-term viability of a business. There are a host of tactics to achieve the ultimate goal of any eCommerce business, which is to reduce customer acquisition costs. We recently detailed the four most effective tactics here . Big picture, by turning first-time buyers into brand loyalists, you can also reduce your marketing, advertising and outreach spend. Warranties and registrations play a part in that customer retention. By creating additional touch points (warranties) and collecting data from a more comprehensive pool of customers (registrations), brands can cut back on their spending without sacrificing revenue at the end of the day. To hear Ben talk through this topic and how vital Clyde and warranty programs can be to a merchants bottomline, listen to our full webinar here .
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