Jamie Hamer, Co-Founder at Loxa, talks about the importance of implementing a comprehensive furniture protection programme.
I still remember that sinking feeling when I knocked over a glass of red wine at my parents’ house. As the liquid seeped into their cream fabric sofa, I knew I was in trouble. That one clumsy moment cost me £2,000 to replace the entire sofa – money I simply didn’t have as a recent graduate. My parents, however, are not the type to let me off scot-free. If only they’d had furniture protection when they purchased it.
This personal disaster opened my eyes to a significant opportunity that many UK furniture retailers are overlooking – providing insurance with their products. At Loxa, we’ve seen first-hand how implementing a comprehensive furniture protection programme can simultaneously boost your bottom line and enhance customer satisfaction.
An Untapped Uplift in Revenue
Including a furniture protection plan typically costs between 1-4% of the product price, making it an accessible investment for a furniture retailer. Yet this seemingly modest addition can yield remarkable results: conversion increases of 11% can happen when properly integrated into the sales process, online and instore.
Consider a £1,500 sofa with a 5-year protection plan that would cost a retailer ~£36. While the customer recognises the benefit of complimentary peace of mind against accidents, stains and defects – retailers not only enjoy higher conversion, but also larger purchases and improved customer trust and sentiment. Furniture protection plans require minimal overhead to maintain, and much of the expense is offset by the savings seen in post-sale support costs, which are largely taken care of by the plan provider. It’s a classic win-win scenario that too many furniture businesses fail to capitalise on.
Beyond the Sale: Creating Customer Loyalty
When a customer has the security of a product protection plan and experiences a swift, hassle-free resolution to a claim, they develop lasting loyalty to your brand. According to research from Infosys, 78% of consumers are more likely to become repeat customers when retailers provide them with targeted, personalised offers – and a well-executed furniture protection plan can be exactly that kind of personalised service.
Implementation Made Simple
Adding insurance to your product offering doesn’t require a complex system build or changes to your infrastructure. Our simple e-commerce plug-ins can be deployed swiftly, without impacting your systems, or your day-to-day sales.
Specialist claims handlers manage the entire claims process for your customers, from initial reporting to resolution, allowing retailers to focus on their core business and lightening the load on their support teams. At Loxa, our specialist claims partners hold a Trustpilot rating of 4.7 – giving you peace of mind that your customers will be in good hands.
The Psychology of Protection
Understanding why customers value furniture protection reveals interesting insights. While practical considerations like having children or pets play a role, a furniture purchase represents a significant financial and often emotional commitment. Knowing their investment comes with long-lasting protection can be a powerful motivator in driving their decision to buy.
Higher-end retailers are strategically embracing this approach as they look to offer a fuller post-sale luxury service, recognising its power to enhance customer loyalty and create a significant point of differentiation in a competitive landscape.
Looking Ahead
The furniture protection market continues to evolve, with innovative offerings like fabric-specific treatments, as well as extended mechanical coverage creating even more compelling value propositions.
In my view, everyone should have the ability to have a furniture technician in their home to repair upholstery the next day after an accident – it shouldn’t take a £2,000 mistake like mine to recognise the value of insurance. At Loxa, we have the power to make this peace of mind accessible to every customer, online and instore, at the most competitive rates in the industry – while strengthening your retail business in the process.
About Loxa
Loxa (formerly Bolt Cover) is a retail insurance technology company that enables furniture businesses to seamlessly integrate protection products into their customer journey. Through innovative technology and strategic partnerships, Loxa creates new revenue streams for retailers while providing consumers with valuable protection for their purchases. The company’s mission is to ensure the future of retail includes fair, transparent, and seamless protection for consumers’ most valuable assets.
The brand underwent a recent refresh from Bolt Cover to Loxa as well as launching apps for both Magento and Shopify platforms. This strategic move expands the company’s reach and capabilities, enabling online retailers to seamlessly integrate protection products into their offerings. The new brand identity and expanded platform compatibility reflect Loxa’s commitment to transforming how retailers offer insurance and protection products to their customers.
