Apple has a few things figured out. One, like all successful businesses, they know that a loyal customer base is one of the most important drivers of growth. Apple also knows that there are ways to increase customer loyalty in addition to simply developing amazing products. One way they increase loyalty and guarantee future revenue is by offering customers Applecare protection plans.
Studies show that there are two major consequences of upselling customers protection plans:
- Customers who invest in protection plans enjoy a greater sense of satisfaction with their purchase and are therefore more likely to recommend their friends buy an Apple product.
- Customers who purchase protection plans tend to be more brand loyal shoppers. By offering Applecare, Apple attracts a more loyal cohort of customers.
Both results spell out future business, not to mention the profit Apple earns from the sale of each protection plan. Applecare isn’t just a “nice-to-have” that puts customers’ minds at ease when they invest in a Mac or an iPhone, it’s an essential driver of Apple’s revenue.
If offering protection plans is inherently beneficial to business, why doesn’t everyone do it? The market for product protection plans is massive, at more than $40 billion annually. However, the vast majority of this market is comprised of transactions at the top five or so retailers in the country. There are a few reasons small- and medium-size businesses aren’t utilizing these programs to their benefit.
- Starting a product protection program takes months of administrative toil and technical know-how. The vast majority of businesses have neither the time nor resources to implement one.
- It’s not worth insurers’ time to partner with SMBs at scale. It’s only worth their effort if the business makes hundreds of millions, even billions of dollars.
- Business can’t afford to take on the risk themselves.
The obstacles preventing SMBs from offering their customers product protection plans are insurmountable for most businesses. As it stands, only the biggest retailers have the capacity to offer these types of programs.
Clyde equalizes the playing field by making it possible for any business to offer its customers product protection at the point of sale. With Clyde’s technology and partnerships with insurance companies, any business, regardless of its size, can begin increasing customer loyalty and driving more business via the sale of protection plans. Plus, the integration only takes five minutes, not six months. We offer accident coverage so your customers can beat on their product without concern. They’re covered and you make money, it’s a win-win.
Businesses have endless ways to utilize the extra profit. They can hire more sales reps, give employees a raise, or even donate it, just to name a few possibilities.
To learn more, visit joinclyde.com or drop us a line at email@example.com!