The mobile device repair industry is booming, reaching nearly $4 billion with no indication of slowing. When you consider the release of advanced models like the new iPhone X coupled with the limitations of many manufacturer warranties, that number begins to make sense. Should a consumer damage the allegedly unbreakable glass screen on Apple’s new X, his or her out-of-pocket repair cost is a whopping $279, thanks to a warranty that doesn’t cover drops.
To mitigate the possibility of damage, many consumers look to their retailer for protection accessories—like screen protectors or phone cases—to help them to avoid these types of costs. Always a great start. But, should something happen and one of these accessories doesn’t perform as expected, how can the original equipment manufacturer (OEM) assist their retailer partners for consumers in need of a solution? Let’s take a look.
By partnering with a third-party insurance provider, OEMs can leverage product performance guarantees to solidify the quality and promise of their product. This type of protection delivers an additional benefit to owning a protection accessory, granting consumers greater peace of mind and satisfaction. And that’s not all: OEMs can help retailers work this guarantee into the price of the product to provide that extra backing with the ease of a single purchase.
The promise of product performance guarantees can also help retailers nurture consumer relationships and build lasting loyalty. But be advised: any wireless sales team will have to put in work to get the messaging just right. Thankfully, with the assistance of that third-party insurance provider, OEMs can help retail clients prepare their sales team for potential questions on product performance guarantees and how to explain their importance to customers. It’s yet another effort that can produce positive results for OEMs, retailers, and consumers alike.
Lastly, the relationship between an OEM and the right insurance provider extends beyond the guarantee. Together, OEM and provider can work to perfect their coverage—from the product itself to the language on the packaging—to help set themselves even further apart from competitors and create mutual success for the OEM and the retailer.
As consumers hang on to their mobile devices longer, the repair industry should continue to grow. As it does, OEMs can take advantage with the help of product performance guarantees that allow retail partners to deliver a little extra protection and peace of mind for their customers.
Roger High, is Fortegra VP of New Markets.