6 Benefits of Offering Embedded Insurance
Small retailers have the opportunity to build strong relationships and trust with their customers through personalised interactions and attentive customer service. By addressing frequent customer queries and enhancing after-sales support, they can significantly boost customer loyalty and reduce turnover, creating a more dedicated and satisfied customer base.
By embedding insurance into the customer purchase journey, a furniture retailer can mitigate some of these issues, in the following ways:
More consumer touchpoints: By offering or including insurance with all furniture purchases, the retailer generates extra opportunities to interact with their customer, boosting engagement and fostering trust.
Positive experiences: Customers can obtain some level of peace of mind if they have any concerns about product quality and longevity. This leads to a more positive overall experience, improving trust and credibility.
Elevate your post-sale experience: Retailers can engage with the claims process directly, offering swift resolution through repair and like-for-like replacements. While reducing the need for direct customer support, which will be provided by skilled and dedicated claims professionals. This streamlines the post-sale process, and enhances customer outcomes and satisfaction.
Establish a trusted brand: Offering insurance-backed warranties can improve attachment and reduce customer churn by providing added value and assurance. Customers are more likely to remain loyal to a retailer that offers comprehensive protection for their purchases. Big players like John Lewis do this on some of their products, to achieve just this outcome.
Additional revenue: A simple, tech-enabled embedded insurance solution presents an opportunity for retailers to capture additional income through the premiums they generate for insurers. Servicing customer claims through providing product repairs and replacements, is another available revenue stream also.
Decrease your footprint: Businesses can demonstrate their commitment to a sustainable future by increasing the longevity of products through repair and re-use, and thereby keeping them out of landfill. Combined with ethical product manufacture, this can improve customer sentiment.
In summary, partnering with Bolt Cover embedding insurance into a retail business model allows retailers to address existing challenges, improve customer satisfaction, foster trust, and create new avenues for revenue generation.
Contact Bolt Cover to get you and your retail business hooked into the next iteration of embedded insurance!
*Source: BCG article Jan-2024
