Warranty Cards Reimagined
How warranty cards can hike customer lifetime value
Learn how to use the untapped potential of digital warranty cards to connect with consumers meaningfully and elevate customer lifetime value. Customers enjoy hassle-free access to product manuals, service details, and usage tips. This channel allows brands to cater to evolving customer needs and drive preference during the product upgrade cycle.
The Story
To modernize and maximize the potential of after-sale services, a visionary consumer goods company embarked on a unique journey. Moving away from traditional warranty cards, they introduced a “digital twin” for each product unit sold, encapsulated within a smart token. These tokens are more than just a digital representation; they come embedded with product serial numbers and a certificate of authenticity.
For customers, the transition was seamless. Upon product purchase, they were presented with this new form of warranty — a digital card based on a smart token, easily accessible within their digital wallet. Gone were the days of keeping track of physical cards or lengthy registrations. Every essential detail, from product specifics to warranty benefits, was just a click away.
As customers engaged with their products, the brand maintained a digital log of maintenance, upgrades, and even warranty extensions, ensuring transparency and trust.
Furthermore, for those looking to resell, this digital twin provided potential buyers with a comprehensive product history, bolstering the product’s resale value.
The Outcomes
- Upward trajectory in customer lifetime value metrics.
- Enhanced visibility and understanding of product owners, in a compliant manner.
- Higher perceived product value and product resale value through authenticity certificate.
- Lower operational costs.
- Compliance with regional regulations, such as the European Union e-warranty card.
How it Works
- For every physical product unit, generate its "digital twin" in the form of a product warranty card smart token.
- Embed product serial numbers and a certificate of authenticity within each token.
- Associate both base and extended warranty benefits to the smart token's ownership.
- Upon product purchase or post-purchase registration, transfer the smart token to the new owner.
- This token resides in the customer's non-custodial digital wallet and is owned by the customer.
- Concurrently, establish a customer record and tie the smart token in the brand's CRM crafts.
- The token becomes a two-way communication channel, facilitating interactions such as polls, offers, or token-driven experiences, as well as redeeming warranty benefits.
- By leveraging consumer-shared details (zero-party data) and interactions observed through the token (first-party data), the brand accumulates valuable, compliant insights.
- Document product milestones —maintenance, upgrades, warranty extensions—within this digital twin.
- With the rich insights gained in a compliant way from the customer interactions, brands can personalize offerings, experiences, and messages for each customer.
- In the same of a product resale to a new owner, the smart token certifies product authenticity, prior product ownership, remaining warranty, and maintenance history—raising the resale value.
- In ownership transfers to a new owner, the brand continues warranty benefits for the new owner, simultaneously presenting opportunities for upselling extended services or product accessories.
- When the product's lifecycle ends, brands can incentivize eco-conscious recycling, compliant with regional regulations.
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