Global leader in Warranty Analytics Services offers insight into how Millennials perceive and purchase manufacturers’ warranty products.
In December 2018, After, Inc. launched its “Millennials and Extended Service Plans” study, to investigate the attitudes and behavior of Millennials regarding manufactures’ product warranties and Extended Service Plans (ESPs).
The After, Inc. study surveyed 500 Millennials age 22-37 who had purchased new products in the last six months across five categories: smartphones, tablets, laptops/desktops, printers and digital cameras. Participants were segmented by gender, household income, personal vs. business usage, where they bought the products, and whether or not they purchased an Extended Service Plan.
Some key findings of the After, Inc. study include:
- ESP attach rates were higher among men, higher income households (except smartphones where income is not a factor) and business vs. personal users.
- The highest ESP attach rate was with digital and video cameras (76%). Less than half of Millennials purchased ESPs in the other categories.
- The higher the device cost, the higher the ESP attach rate.
- Millennials want to learn about ESP benefits and cost before or at time of purchase.
- The primary reasons Millennials purchase ESPs is “to extend product life”, “peace of mind” and “high repair/replacement cost”.
- Reasons for not purchasing include “manufacturer warranty is enough” and “not a good value”.
- Millennials are highly influenced by reviews from customers and friends.
Based on their research, After, Inc. has three recommendations for ESP providers:
- Consider offering multiple ESP plans: a) less coverage for a lower price, which may encourage more price elastic Millennial buyers, and b) separate plans for personal vs. business, with lighter personal coverage and more robust small business coverage.
- Highlight your ESP offerings and benefits on your website so Millennials can conduct research before they purchase.
- Encourage product reviews on the Internet – incorporate into your ESP solutions page, social media, Amazon website, or other retailers’ websites. Make sure to monitor reviews and respond to create a two-way dialogue.
You can also find additional insights on the After, Inc. blog.
About After, Inc.
After, Inc. (www.afterinc.com) is a global leader in the warranty services industry. Its predictive analytics, data-driven marketing strategies, reporting and program administration are second to none.
After, Inc. has partnered with some of the world’s top brands to help transform their warranty businesses, driving customer satisfaction post-purchase, higher product reliability, deeper brand equity and additional revenue/profit opportunities.
Headquartered in Norwalk, Conn. with offices in New York City, After, Inc. is part of the EPIC Holdings family of companies, which also includes EPIC Insurance Brokers & Consultants and PowerGuard Specialty Insurance Services.
Senior Vice President- after, Inc.