Question 1

Can extended warranty become part of a loyalty program?

Accepted Answer

Potentially, yes. Protection can provide a reason for retailers or brands to remain connected with customers after purchase. Assistance, useful engagement and selective rewards can then be layered around the ownership journey, provided the core protection experience remains strong.

Question 2

What is the Risk + Reward + Relationship model?

Accepted Answer

Risk refers to the core protection proposition. Reward introduces positive value during ownership, while Relationship focuses on creating an ongoing connection with the customer beyond a claim or individual transaction.

Question 3

Why should retailers connect loyalty with product protection?

Accepted Answer

Retailers may have relationships across several products and brands within the same household. A broader ownership program could help connect protection, service, engagement and future purchase opportunities across that relationship.

Question 4

What types of rewards could complement an ownership program?

Accepted Answer

Depending on the program, benefits could include ownership milestones, maintenance-related benefits, family or lifestyle rewards, upgrade privileges, referral recognition or next-purchase benefits.

Question 5

Can AI support extended warranty and ownership programs?

Accepted Answer

AI could potentially support approved troubleshooting, product guidance, maintenance information and service journeys when appropriately connected to product and customer information.

Question 6

Should rewards be added if claims handling is poor?

Accepted Answer

No. The priority should remain Trust → Service → Engagement → Reward. Rewards cannot compensate for unclear coverage, delayed repairs or poor claims experiences.

RewardCare Tag