The e-bike industry has been booming. More and more people are looking for sustainable transport and outdoor adventures. While many retailers sensed a growing opportunity and jumped in the market, this growth has now created very fierce competition among retailers. Despite the brand differentiations, e-bikes are very complex products combining electrical and mechanical systems. Standing out is difficult. Growing profits even more so.
This is further made challenging given customers’ worries about durability, especially when using bikes for adventures where failures would be unacceptable. Ensuring product protection becomes critical. The following is a case study of e-bike retailers like Magnum Bikes, Hamilton Electric Bikes, Levy Electric, Go Power Bike, and several others. The results presented here are cumulative.
E-bike retailers face three critical problems:
1. Increasing profits without raising prices
- The margins are very thin in a competitive market
- Price increases drive customers away
- Need for new revenue streams
2. Better customer experience without extra costs
- Customers want exceptional service
- Limited resources for additional staff
- Need to improve experience efficiently
3. Standing out from competitors
- New brands keep entering this market constantly
- Most have similar features and pricing
- It’s very hard to find a unique value proposition, and maintain it without competitors duplicating it
The core issue: E-bikes cost thousands, but manufacturer warranties only cover 12-24 months with limited protection. Customers worry about maintenance/failures during adventures or after warranty expires.
Sales soared-
With an impressive average warranty conversion rate of 20.2% that soared as high as 38% on some days, these e-bike retailers earned significant incremental revenue from warranty revenue share, which alone boosted their net profits by up to 14.4% on average at no cost.
This substantial net profit increase enabled them to scale and better compete in a fiercely competitive market. One of the larger e-bike retailers was even able to lower their product prices, attracting even more sales.
Higher trust-
The program significantly boosted consumer confidence, reinforcing the retailer’s reputation as a brand that stands by the quality and durability of its products. This is depicted in their improved customer conversions up to 18% and AOVs by up to 15%.
Loyalty boost-
The positive reception of the warranties cultivated a community of loyal enthusiasts. Return purchases and referrals surged, solidifying these retailers’ position as brands that adventurers could trust and rely on.
Tailored protection plans-
We implemented warranty programs that complemented manufacturer coverage with protection against accidental damage, wear and tear, and electrical/mechanical failures. This comprehensive coverage gave customers confidence to buy their e-bikes without worrying about costly repairs or replacements.
Transparent communication-
We displayed all the information in front of the customers, directly within their purchase journey. This ensured customers knew exactly what they were getting with their warranty plan. No long documents, no shady tactics. Direct, concise information shared upfront.
Effortless claims process- SureBright optimizes the warranty claim process, making it easy and efficient for customers to report issues and receive support. Customers can file claims using the customer portal, email, or telephone in under 2 minutes, even if they lose their receipts. The vast network of service providers and tight service level agreements ensured an exceptional customer experience whenever there was an issue with the e-bike.
E-bike retailers successfully transformed customer concerns into competitive advantages. By partnering with SureBright, they stood out in the market and increased sales, profits and customer trust.
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