Increase Revenue and Customer Satisfaction with Product Protection Plans

Increase Revenue and Customer Satisfaction with Product Protection Plans

Product protection plans should be a retail priority heading into 2024. As the resale market explodes, plans provide benefits for both businesses and customers looking for reassurance with pre-owned purchases.

Why Plans Matter in the Resale Market

According to ThredUp’s 2023 Resale Report, the secondhand retail market is projected to double by 2027, reaching $350 billion globally. With more competitors entering the space, retailers need differentiation. Protection plans provide this by giving customers extra peace of mind. For retailers, plans drive revenue, encourage repeat business, and increase customer loyalty.

Benefits for Customers

Protection plans give customers confidence in their pre-owned purchase. Plans fill gaps left by limited manufacturer warranties and shield against unexpected issues arising down the road. If anything happens, plans allow for easy repairs, replacements, and continued support from trusted retailers. The cost of a plan is minimal compared to paying full price again after damage or normal wear. Customers gain invaluable peace of mind.

Benefits for Retailers

For retailers, protection plans represent an extra income stream from plan sales on top of product revenue. When customers utilize plans for repairs or replacements, it drives return business and builds loyalty. Retailers also gain better control over risks and service needs associated with used inventory. Even when plans go unused, they still earn profits and redemptions pay off by encouraging future sales!

Implementing Protection Plans

The key for retailers is integrating protection plans into the regular sales process. Staff should be trained on communicating the benefits and value of plans to customers, and adding them into standard transactions can be easy with the right point of sale. The rewards in increased revenue and improved customer satisfaction make the small extra effort worthwhile.

Capitalizing on the Resale Wave

The accelerating resale wave provides the perfect opportunity to promote protection plans. Retailers can tap into the growing consumer interest in pre-owned while meeting the demand for purchase reassurance. Offering protection plans benefits your business and your customers.

Protection plans are a win-win for retailers and customers in the booming resale market. Take steps now to integrate plans into your sales process and see the benefits in 2024! Ready to implement Protection Plans with Bravo? Talk to sales.

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About the Author:

Tally Mack is a fifth-generation pawnbroker and eCommerce enthusiast. She loves traveling, being outside, and working out.

Before taking the reins as CEO, Tally served as Bravo's Vice President of Business Development, leading the company's sales and marketing organization. She's been instrumental in leading and executing many of the company's strategic shifts, including the acquisition of CompuPawn and the launch of UsedGuns.com.

Tally earned her Doctorate of Law (J.D.) from DePaul University College of Law in 2013 after attending the University of Colorado at Boulder, where she earned her B.A. in Communication Studies. She also completed the Key Executives Program from Harvard Business School in 2013.

Tally is a pawnshop lov