Extend

Other competitors in the space are essentially passing merchants rate card, creating a back and forth collaboration process to determine how to price warranties. Typically cart-triggered modals are automatically generated.

In contrast, the Extend modal offer is presented as a result of the consumer taking that specific call to action. They can also provide Design/CX Team members who will collaborate with the merchant to find a design pattern that enables the best consumer experience with modal offers.

It’s worth noting that Extend bears the financial risk to process claims. They underwrite their own program. This is particularly advantageous for providing unorthodox warranty coverage scenarios – for example, if you want to cover unique breakage problems of your product (cracks, spills, breaks, user errors, workmanship, etc.)

Extend’s users warranties have a 90+ Net Promoter Score( NPS), meaning that users who purchase warranties and have an issue are extremely happy with the service they receive. It’s not surprising, since 98% of claims are adjudicated in less than 90 seconds, through a quick and easy live chat process.

To make a claim, users click the link from their Extend email, talk to a virtual assistant chatbot, and within 90 seconds (yes, less than two minutes) they’ll know if their claim has been accepted.

10% of customers purchase warranty plans. Of those who buy a warranty, 4.5% of them become repeat purchasers and these warranty purchasers/repeat buyers incrementally increase store revenue by ~2%. That is 2% of pure profit.

All of this leads to a more positive customer experience (especially their experience concerning the product) which leads to happier customers, more referrals, and all the other benefits that come from delivering true value to your customers.

For a typical Shopify or Shopify Plus brand, you’ll start by signing a Master Services Agreement (MSA) which will take 2-3 weeks to get up and running. Extend will work on their end to map plans to products. If you’re willing to give their team collaborator access, they will get everything in place here. They will clone your current theme, make updates (safely, in essentially a sandbox environment,) send these over to you for approval, and then push the theme live when you give the green light.

If you prefer not to grant Extend access, you will need to give your developer some code to insert on product detail pages and cart pages. Their API makes it possible to get setup on any platform.

Obviously, you’ll need to be selling warrantable products (products that have a manufacturer warranty) in order for them to put an extended warranty on the product. These will typically include categories like:

• Animals & Pet Supplies: Aquarium Filters, Biometric Monitors, Pet Crates, etc 
• Apparel & Accessories: Jewelry, Smart Watches, Sunglasses, Glasses, etc 
• Arts & Entertainment: Sewing Machines, Electronic Instruments, Drum Kits, etc 
• Cameras & Optics: Cameras, Webcams, Binoculars, Telescopes, Scopes etc 
• Electronics: Arcade Equipment, Audio, Circuit Boards, Computers, Video, etc 
• Furniture: Furniture Sets, Sofas, Office Furniture, Outdoor, Mattresses, etc 
• Hardware: Building Materials, Accessories, Pumps, Heating, Ventilation, etc 
• Health & Beauty: Monitors, CPAP, Health Wearables, Personal Care, etc 
• Home & Garden: Business & Home Security, Decor, Rugs, Fireplaces, etc 
• Luggage & Bags: Duffel Bags, Fanny Packs, Garment Bags, Accessories, etc 
• Mature: Sex Toys, Combat Knives, Ammunition, Guns, Pepper Spray, etc 
• Office Supplies: Office Equipment, Calculators, Label Makers, Typewriters, etc 
• Sporting Goods: Connected Home Fitness, Water Sports, Camping, Cycling, etc 
• Toys & Games: Board Games, Electronic Games, Drones, Robotic Toys, etc 
• Vehicles & Parts: Vehicle Electronics, Vehicle Parts, Electrical Systems, etc

If you’re selling within these verticals, adding an extended warranty service is a no-brainer. It’s free, it makes you money and it improves your customer experience and retentions. What are you waiting for?

For other verticals with unwarrantable products such as cosmetics and food, Extend represents less of an opportunity. However, if you have one or two products that are different (like a ring light or heat tools) which could be warrantable, then using Extend for a smaller range (even a single product) is not a problem.