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HugsFurniture increased net profits by 27% and boosted customer trust in the brand!


4 min

The furniture industry is fiercely competitive. It is challenging to stand out from competitors, establish a trustworthy brand image, and provide customers with value while ensuring profitability. According to the CSIMarket report, the furniture industry's net profit margin averages around 2.4%. Different merchants devise different strategies to overcome these hurdles. This case study focuses on how implementing extended warranties is one such strategy that can notably impact a business positively. This approach can boost profits, forge deeper customer connections, and require minimal time and resource investments from the merchant.


Situated in Stoney Creek, Hamilton, HugsFurniture stands out as a furniture emporium specializing in mattresses, bed frames, and home furniture. They sell through brick-and-mortar stores and as well as online. Their mission revolves around revolutionizing the home furniture shopping experience. Setting themselves apart as an indoor furniture destination, they boast a diverse collection of renowned brands such as Stearns & Foster, Tempurpedic, and Beautyrest. Customers have the opportunity to physically test mattresses and electric beds, ensuring they make the perfect choice before making a purchase. HugsFurniture takes pride in its expert staff, unwavering commitment to quality, and personalized care extended to its customers, reshaping the conventional furniture buying process.

The primary aim of HugsFurniture was to offer an additional layer of assurance to ensure their clients felt confident in their furniture and mattress investments. Recognizing the importance of addressing customer concerns regarding product durability and after-sales service, the merchant sought to provide a sense of security and trust in their offerings.

Strategic Implementation and the Transformative Partnership with SureBright

HugsFurniture partnered with SureBright to seamlessly integrate extended warranty solutions to meet their goals. The extended warranties provided coverage for up to 10 years, exceeding the manufacturer warranty period by a significant margin. The coverage was comprehensive, encompassing accidental damage, such as spills and stains from various sources like foods, beverages, medications, and biological fluids. Additionally, it offered protection against manufacturing defects, mechanical issues, and structural damages.


The process of integration was quick and efficient. For online sales, all the HugsFurniture needed to do was download the SureBright Shopify App, a task completed in under 5 minutes. For instore sales, they just opened an account on the SureBright Retailer POS Portal. SureBright took care of setting up all the stores and handling related operations, including claims management. This program demanded almost no time or resources from merchant, allowing them to focus entirely on their core business operations. Remarkably, they still reaped all the intended benefits from the warranty program.

Key Actions Taken:

Extended Warranty Options: HugsFurniture introduced various extended warranty plans, allowing customers to choose the level of coverage based on their preferences and budget

Clear Communication: Everyone ensured transparent communication about the extended warranty benefits, terms, and conditions. This information was prominently displayed on the website, during checkout, and in marketing materials.

Streamlined Claim Process: SureBright simplified the claims process, ensuring customers could easily file warranty claims if needed. Clear instructions and dedicated customer support were made available to assist customers through the claim process.

Results and Impact

Net Profit


Adoption Rate


Enhanced Customer


Sales and Profits Surge: The introduction of extended warranties resulted in a clear uptick in sales. With no expenses linked to warranties for the merchant, the revenue generated directly bolstered the bottom line. This shift contributed to a substantial 27.3% increase in net profits.

Strong Attachment Rate: HugsFurniture witnessed an impressive 16% adoption rate of extended warranties, signalling robust customer interest and confidence in the product protection offerings.

Enhanced Customer Trust: HugsFurniture observed a significant improvement in customer trust and loyalty. The assurance of extended warranties reassured customers about the quality and durability of the products, resulting in positive reviews and wordof-mouth referrals.


HugsFurniture's choice to implement SureBright extended warranties emerged as a pivotal decision that not only amplified profits but also cultivated deeper customer trust and loyalty. Through the provision of extended warranties, they successfully improved customer trust, leading to enhanced sales and a fortified brand reputation within the furniture industry. This case study underscores the significance of customer-focused approaches in propelling business profitability and elevating customer satisfaction in the realm of e-commerce through SureBright extended warranties.