2017 state of the industry - registria...• moms remain a force in product registration, especially...

2017 STATE OF THE INDUSTRY: Consumer Trends in Product Registration

01. INTRODUCTION

REGISTRIA BY THE NUMBERS

1per second

COMPLETEDREGISTRATIONS

70%

of US majorappliances

PHOTOREGISTERSM

IS ON

Registria is an award-winning software-as-a-service company that enables the world’s leading product brands to deliver a powerful post-purchase customer journey for their buyers.

85million

PRODUCTREGISTRATIONS

PRODUCT REGISTRATION FOR THE NEXT GENERATION

Back in 2005, the number one reason cited by consumers for registering a product was to receive warranty information. In 2016, the primary reason remains the same. Based on that data, you would think that nothing has changed in the product registration world.

But you would be wrong.

In today’s connected world, quite a few things have changed in the last decade:

• A new generation of consumers are now influential shoppers, who do not remember a time when the Internet (or Mobile) did not exist.

• This group’s expectations of how businesses should interact with them are completely different than that of the generation before.

• The boundaries of what is acceptable to exchange with a business for something of value has undergone a seismic shift.

For Registria, these changes have had a profound impact on what product registration is, how it’s implemented, and why it’s important.

• We listened to our clients—global brands—and uncovered the shift in the role of product registration. Now, as we happily intended, our solutions are less about product registration and more about customer onboarding, kicking off the post-purchase customer journey and triggering a new aftermarket sales channel.

• Building upon our 2015 launch of Photoregister—our text-to-register mobile solution, we launched our chat-to-register on Facebook Messenger in 2016. This launch allowed us to profile who this chat-to-register buyer is for the 2017 report.

• We commissioned a survey of 1,500 US consumers to delve deeper into their preferences on how to register. The results of this survey highlight significant generational and income level differences.

This research has illuminated and changed how we partner with global brands to craft their customer’s journey. We hope that these insights will provide you a new framework in how to connect with a new generation of buyers.

ABOUT THIS REPORT

Registria analyzed product registration data from 100+ global brands over a 5 year period to identify:

• What are the disruptive trends in registration?

• Who are the consumers that register?

• How do these consumers register?

All data is derived from Same-Brand, US based companies over a five year period ended December 31, 2016, unless otherwise noted.

Reports compiled using activity derived from unique data sets, including proprietary surveys, manufacturer-published sources, and analyst reports.

Industries include:

• Major Appliances

• Small Appliances

• Consumer Electronics (Audio/Video)

• Consumer Electronics Accessories

• Computer Peripherals

• Sporting Goods

• Housewares

• Eyewear

• Power Tools

• Lighting/Plumbing

• Auto Parts

• Guns & Ammunition

OVERVIEW This is our second year to release this report. Many of the key trends remain the same:

• Shift to mobile registration is real: as more brands roll out Photoregister, 45% of their buyers are using mobile to register.

• Buyers who register are 2.3 times more likely to be “Super Buyers”—the top 5 % of buyers.

• Buyers who register via mobile continue to skew younger (<34 years old), but with the same median income range as paper and web (>$75-99K).

• Moms remain a force in product registration, especially moms of young children.

However, a few major shifts have occurred from 2015:

• Men are registering more than women (this is a total shift from 2005) especially using IoT and web channels.

• Hispanics are the top ethnic group who register this year, outpacing other ethnic groups.

• Housewares shifted to the top position among the consumer industries we track (Data Storage was top in 2015).

New to the 2016 Report:

• Our consumer survey shows that Millennial (18-34 years old) and wealthier (>$75K income) registrants say that it’s important to register products for VIP and loyalty programs.

• Survey of actual users of Photoregister—our mobile product registration solution—have rated the experience 4.7 stars.

• Registria’s chat-to-register launch on Facebook Messenger has yielded an initial profile of this user: young families in the nesting phase of their lives.

• Service Contract insights from an independent consumer market research study conducted by The Warranty Group (pages 27-32).

02. THE NUMBERS

BACKGROUND: 2017 SHARE OF WEB TRAFFIC BY DEVICE

LAPTOPS &DESKTOPS

MOBILEPHONES

TABLETDEVICES

OTHERDEVICES

45%50% 5% 0.12%YEAR-ON-YEAR CHANGE:

-20%YEAR-ON-YEAR CHANGE:

+30%YEAR-ON-YEAR CHANGE:

-5%YEAR-ON-YEAR CHANGE:

+33%

Source: Hootsuite Population: United Nations; U.S. Census Bureau; Internet: Internet Worldstats; ITU; InternetLiveStats; CIA World Factbook; Facebook; National Regulatory Authorities; Social Media: Facebook; Tencent; Vkontakte; LiveInternet.ru; Kakao; Naver; Nikiaghaei; Cafebazaar.ir; SimilarWeb; Ding; Extrapolation of TNS Data; Mobile: GSMA Intelligence; Extrapolation of eMarketer & Ericsson Data.

Mobile overtakes desktop as top traffic driver worldwide

IMPACT OF MOBILE

2014 2015

REGISTRATIONS BY CHANNEL

1.3%Growth

20.6%Growth

-8.1%Growth

20.2%Growth

Source: Registria Data, Sampling of 100+ Brands

Web & Mobile Paper

2016

22%Growth

-7%Growth

New methods to register drive continued registration growth

Introduced Chat-to-Register

2014 2015 2016

9%Growth

9.1%Growth

6.5%Growth

Introduced Text-to-Register

TOTAL PRODUCT REGISTRATIONS

All Channels

CHANNEL EVOLUTION

PAPER VS WEB BEFORE MOBILE

Registration Rates 8-18% 24-38% +375%

Completion Rates 56% 80-91% +63%

Registration (Within 24 hours) 4% 16.5% +312%

Warranty Attach Rates (First 90 days) 2.5% 3-9% +260%

POR Attach Rates (Point-of-Registration) 0% 3.7% New Sales Channel

26%

74%

72%

28%

Paper

Web

Mobile

1%

Chat-to-Register(Mobile Social)

2005 2014 2016

10 year snapshot shows channel shifts, following global digital trends

AFTER MOBILE & CHAT*

* Represents brands who have launched both channels.

45%

29%

25%


SPEED TO REGISTER

< 48 Hours 2 - 7 Days 2 Weeks 3 Weeks 4 Weeks 5 Weeks

100%

80%

60%

40%

20%

0

16.5%

44.4%

66.7%

82.6%

92.9%

100%

New product registration methods are speeding up the first touchpoint

In 2016, 44% are registered within one-week vs 23% in 2015.

4%

23%

49%

63%71%

97%

2015

2016


BENCHMARK: REGISTRATION RATES

0% 10% 20% 30% 40% 50%

TraditionalPaper Card

Mobile(PhotoregisterIcon on Card)

Mobile PhotoregisterSM benchmarks outperform significantly traditional paper card rates, especially when incentives are offered

Mobile(Photoregister

Icon on Product)

8-10%

18-20%

up to 38% 43% withincentive

24% withincentive

11% withincentive


REGISTRATION COMPLETION RATES

0%

20%

40%

60%

80%

100%

Desktop Mobile(Photoregister Code)

62.5% increase over desktop

Mobile Registration (Photoregister Code) eliminates the need for a customer to key product model and serial number data thereby increasing the accuracy of data collected and the registration page completion rate.

44% abandon registration

56% Completion

91% Completion

Completion rates have reached 91% with mobile-serialized product registration


03. WHO REGISTERS?

WHO REGISTERS PRODUCTS2005 vs 2016

2005

2016

The last decade of technology has completely changed the product registration landscape.

61%

female

77%

no children

$52Kmedian income

77%

prefer paperregistration

59%

male

61%

with children

$82Kmedian income

75%

prefer digitalregistration


100

228

326

323

254

245

244

231

224

222

216

203

190

Baseline

Registria

Housewares

Small Appliances

Lighting & Plumbing

Audio/Video

Data Storage

Sporting Goods

CE Accessories

Guns & Ammunition

Household Appliances

Power Tools

Eyewear

0 50 100 150 200 250 300 350

SUPER BUYERSConsumer who register products spend on average 2.3x more than the average US Household

Super Buyers havethe highest purchasing activity and purchasing capacity.

Super Buyers comprise the top 5% of consumers in the U.S.


GENDER: ROLE REVERSAL IN THE PAST DECADE

2005 2015 201661%

39%

47%

53% 59%

41%

Male Female

2005 vs 2016

The increase in male registrations may reflect the change in the types of products purchased today—such as consumer electronics and IoT products.


IoT PaperMobile Web

GENDER BY CHANNEL

72%

28%

53%

47%

51%

49%

65%

35%

Male Female

Men register more than women across all channels


AGE VS INCOME

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

18 -

25

26 -

30

31 -

35

36 -

40

41 -

45

46 -

50

51 -

55

56 -

60

61 -

65

66 -

70

71 -

75

Ove

r 75

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

18 -

25

26 -

30

31 -

35

36 -

40

41 -

45

46 -

50

51 -

55

56 -

60

61 -

65

66 -

70

71 -

75

Ove

r 75

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

18 -

25

26 -

30

31 -

35

36 -

40

41 -

45

46 -

50

51 -

55

56 -

60

61 -

65

66 -

70

71 -

75

Ove

r 75

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

< $15K

$15K

- $2

9K

$30K -

$39K

$40K -

$49K

$50K -

$59K

$60K -

$74K

$75K

- $9

9K

$100K -

$124

K

$125

K - $1

49K

$150

K - $1

99K

$250

K - $4

99K

> $50

0K

$200K -

$249K

16.00%

18.00%

20.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

< $15K

$15K

- $2

9K

$30K -

$39K

$40K -

$49K

$50K -

$59K

$60K -

$74K

$75K

- $9

9K

$100K -

$124

K

$125

K - $1

49K

$150

K - $1

99K

$250

K - $4

99K

> $50

0K

$200K -

$249K

16.00%

18.00%

20.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

< $15K

$15K

- $2

9K

$30K -

$39K

$40K -

$49K

$50K -

$59K

$60K -

$74K

$75K

- $9

9K

$100K -

$124

K

$125

K - $1

49K

$150

K - $1

99K

$250

K - $4

99K

> $50

0K

$200K -

$249K

16.00%

18.00%

20.00%

MOBILE WEB PAPER

MOBILE WEB PAPER

AGE

INCOME

Mobile skews younger but income distribution is the same for all channels


ETHNICITY

Hispanic

European Asian

Middle Eastern African American

Native American

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

IoT

MOBILE

WEB

PAPER

In 2016, Hispanics who registered used mobile more than other ethnic groups

146

149

135

125

199

98

69

50

132

100

126

67

100

107

111

118

76

75

67

56

60

73

52

71


KEY SEGMENT

New Moms

Moms of Preschool Kids

Green Moms

Fit Moms

Working Class Moms

Moms of Gradeschool Kids

Trendy Moms

Soccer Moms

Moms of Highschool Kids

Corporate Moms

Stay at Home Moms

Big City Moms

0 50 100 150 200 0 50 100 150 200 0 50 100 150 200

Even though men are registering more, moms remain a force in product registration, especially moms of young children

MOBILE WEB PAPER


04. CHAT-TO-REGISTER

BACKGROUND: 2017 GLOBAL DIGITAL SNAPSHOT

TOTAL POPULATION

7.476BILLION

INTERNETUSERS

3.773BILLION

ACTIVE SOCIALMEDIA USERS

2.789BILLION

ACTIVE MOBILESOCIAL USERS

2.549BILLION

URBANISATION:

54%PENETRATION:

50%PENETRATION:

37%PENETRATION:

34%

Source: Hootsuite Population: United Nations; U.S. Census Bureau; Internet: Internet Worldstats; ITU; InternetLiveStats; CIA World Factbook; Facebook; National Regulatory Authorities; Social Media: Facebook; Tencent; Vkontakte; LiveInternet.ru; Kakao; Naver; Nikiaghaei; Cafebazaar.ir; SimilarWeb; Ding; Extrapolation of TNS Data; Mobile: GSMA Intelligence; Extrapolation of eMarketer & Ericsson Data.

Mobile-Social* (Facebook, WeChat, WhatsApp, etc) is quickly becoming the platform of choice around the world

18-30 31-40 41-50 51-60 61+ 0-2 3-5 6-10 11-15 16-18 18-29

< $40K $40K-$59K

$60K-$99K

$100K-$149K

> $150KMarriedCouple

UnmarriedCouple

SingleFemale

SingleMale

95 154 153 100 49 210 207 161 136 158 188

72 99 126 114 114131 94 81 75

8%

23%

30%

22%

17%15%

26%

32%

25%

19%

11%

48%

14%

23%

15%

24%

16%

30%

17%

12%

HEAD OF HOUSEHOLD AGE PRESENCE OF CHILDREN (BY AGE)

MARITAL STATUS HOUSEHOLD INCOME

Our Chat-to-register launch yielded enough data to provide an initial profile of this user. Users are likely to be:

• 31-40 years old

• Married with young children

• Have income of $60-99K

2016 LAUNCH OF CHAT TO REGISTERChat-to-register users are young families in the beginning stages of nesting

Chat-to-register, is a chatbot service designed by Registria for Facebook Messenger.


CHAT-TO-REGISTER USERSAre more likely to be moms of children under the age of 5

221200

195179

164156155

148144144

136133131

126121119

116113110110110

108102

101

LIFESTYLE SEGMENTS

New Moms

Moms of Preschool KidsNew Parents

Working Class Moms

Moms of Gradeschool KidsSoccer Moms

Stay-at-Home Moms

Green Moms

Moms of High School KidsFit Moms

Online BuyersWorking Class Families

Outdoor Enthusiasts

Sportsman

High Spenders

Corporate Moms

Leisure Travelers

Auto EnthusiastsGreen Consumers

Luxury Sports

Big City Moms

New Movers

DIYers

Healthy & Fit

• Members of Chatbot Users are 2.2 times more likely to be in the New Moms segment as those in U.S. Baseline.

• They are 2 times as likely to be in the Moms of Preschool Kids segment.


CHAT-TO-REGISTER USERSAre Heavy to Super Buyers (top 5-10% of buyers), preferring to spend their dollars in retail stores and online

BUYER SCORE CHANNEL SPEND

Super Buyer

Heavy Buyer

Active Buyer

Moderate Buyer

Low Buyer

Web

Retail

Catalog

Overall

132

152

119

92

68

109

119

74

106


05. SERVICE CONTRACT INSIGHTSFROM THE WARRANTY GROUP

OVERVIEW Registration data can drive value for companies in a number of ways—by increasing the volume of product reviews, providing customer intelligence, and generating post purchase sales of accessories and service contracts. Registria’s own research shows that attach rates for warranties can increase substantially—from 2.5% up to 9%—once friction is removed from the registration experience through use of mobile technology.*

In this section, we included an independent study by The Warranty Group (TWG) that demonstrates the impact of warranty sales on customer loyalty and satisfaction.

More than 700 U.S. adults ages 18-70, participating in this study, purchased from at least one of the following categories over the course of a year.**

• Computers

• Digital Cameras

• Dishwashers

• Exercise Machines

• Gaming Systems

• Lawn/Garden Equipment

• Microwaves

• Mobile Phones

• Oven/Stoves

• Power Tools

• Refrigerators

• Tablets

• Televisions

• Washer/Dryers

*Source: Registria Channel Evolution statistics (Page 10).

The Warranty Group (TWG) is one of the world’s premier global providers of warranty solutions and related benefits, with operations in more than 35 countries and nearly 1,700 employees. TWG is a single-source solution that provides underwriting, claims administration, and marketing expertise to some of the world’s leading manufacturers, distributors, and retailers of consumer goods including automobiles, homes, consumer appliances, electronics, and furniture, as well as specialty insurance products and services for financial institutions. TWG partners with their clients to provide business intelligence and customer experiences that drive program performance and increased brand loyalty.

Visit thewarrantygroup.com for contact information.

**Source: US consumer research study conducted by TWG and IPSOS in December, 2015 among past 12 month consumer product buyers. Data is property of The Warranty Group, Inc. (TWG) and may not be used in any portion or format without TWG’s prior written consent.

PURCHASE AND ATTACHMENT RATESLarger consumer goods, which may require a repairman visit, tend to have higher attachment rates

Source: US consumer research study conducted by TWG and IPSOS in December, 2015 among past 12 month consumer product buyers. Data is property of The Warranty Group, Inc. (TWG) and may not be used in any portion or format without TWG’s prior written consent.

ExerciseMachines

Dishwasher Refrigerator Oven/Stove Washer/Dryer DigitalCamera

GamingSystem

Television Lawn/Garden Microwave MobilePhone

Computer Tablet Power Tool

4%

54%

47%

6%

45%

39%

34%32%

27% 27% 26%24% 24%

22%22% 22%

16%

6%8% 8%

11%

17%

8%11%

28%

17%

10%

P12M Purchase Rate P12M Attachment Rate

P12M Purchase Rate = Purchased within the past 12 months

P12M Attachment Rate = % of consumer product category buyers that purchased a service contract for their item.

9%

SC BUYERS MORE SATISFIED WITH THEIR PRODUCTSService Contracts (SC) Buyers give higher ‘extremely satisfied’ ratings than Non-SC Buyers

ExerciseMachines

Dishwasher RefrigeratorOven/Stove Washer/DryerDigitalCamera

GamingSystem

TelevisionLawn/GardenMicrowaveMobilePhone

Computer TabletPower Tool

21%

34%

50% 49%46%

27%

43%45% 44%

42%

47%

41%46% 48%

65%

80%77%

68%

48%

61% 62% 61%

57%60%

53%49% 49%

73%

Non-SC BuyersSC BuyersQuestion: Overall, how satisfied are you with each of the items you purchase?

Percentages: Percent of SC Buyers and Non-SC Buyers within each consumer product category who are extremely satisfied with the consumer product they purchased.


SERVICE CONTRACT BUYERS MORE BRAND LOYALSC Buyers are more likely to have purchased the same brand as ‘last time’ across several categories than Non-SC buyers

Non-SC BuyersSC BuyersQuestion: Was the item you owned prior to this the same brand or a different brand?Percentage: Those indicating they purchased the same brand this time as last time.

DigitalCamera

GamingSystem

MobilePhone

Oven/Stove Dishwasher Lawn/Garden Power Tool ExerciseMachine

Computer Television Microwave Washer/Dryer Tablet Refrigerator

80%

49%

75%

68%65%

25%

39%34%

47% 46%

39%

31%

24%

34%

41%

22%

16%

64%61%

58%54% 52% 52%

46%43%

40% 39%

62%

53%

39%


SERVICE CONTRACT BUYERS SKEW YOUNGER & MALEProfile of SC Buyers suggest opportunities to target specific demographics during registration

Non-SC Buyers

SC Buyers

48%

62%

43%52%

38%

57%30%

37%

28%

21%23%

20% 20%21% 21%

28%

20%

30% Total

GENDER AGE

AVERAGE ANNUAL INCOME AVERAGE NUMBER ITEMS PURCHASED IN YEAR

Male Female 18-34 35-44 45-54 55+

SC Buyers

Non-SC Buyers 1.7

2.7

Non-SC Buyers

$81,800

SC Buyers

$81,700

Total

$81,700


06. CONCLUSION

CONSUMER SURVEY & FEEDBACK

We wanted consumer feedback and here’s what they had to say:

Yes to mobile, no to additional downloads. 35% of people say they would prefer to have product information (setup, tips, warranty, etc.) delivered directly to their mobile device via an app they already use.

• This number increases significantly among younger and more affluent consumers: 51% of people age 25-34 say they would prefer this method, and 47% of people with income of $100K and above.

• Millennials actually prefer to be contacted by businesses via social and chat.

Millennials want special offers during registration. Yes, registering for warranties is important, but Millennials find that registering to receive special offers more compelling than other age groups.

VIP Programs appeal to wealthy registrants. People with higher income ($75k and up) think it’s more important to register products to stay connected with the brand for VIP and loyalty programs than people in lower income groups.

Photoregister works! End users rated Photoregister—our mobile registration solution—4.7 stars for overall ease of use. 3 in 10 people who use Photoregister report it is the first time they have registered a product.

Source: March 2017 study of 1,500 consumers conducted by Digital Research Group on behalf of Registria; Survey of 80,000 Photoregister users, February 2017 conducted by Registria.

CONCLUSION The first product registration cards were created by National Demographics and Lifestyles (NDL), a database development and marketing company based in Denver, Colo., and sent out in 1977 to brands like Rival Cookware and Whirlpool. Even then, the customers who mailed in product registration cards were the most receptive to receiving direct mail and other marketing information from consumer marketers. This report shows that this still holds true today – just that the communication method has changed as well as the expectations of today’s product buyers.

In today’s connected world, a new generation of consumers is now made up of influential shoppers who do not remember a time when the internet and mobile devices didn’t exist. And this group’s expectations of how brands and businesses should interact with them are completely different than that of the generation before.

The profile of who registers has completely changed. Men now register more than women. Higher income segments now register. Registration has crossed ethnicities. When the friction points of product registration are removed, and new ways to register are offered on platforms that customers use every day, product registration rates multiply 3-5X, creating massive customer databases for companies.

The role of product registration has changed. Product registration—after undergoing a technology facelift on mobile and social—has evolved beyond the intent of those original paper cards in 1977. It has become the connecter to the consumer, an onboarding event that triggers a customer journey that brands can craft for their own purposes. We have seen brands use our solutions to jumpstart ratings and reviews programs, create customer VIP programs, and generate a new point of sale for accessories, warranties, and other products. On the 40th anniversary of product registration, we bring you our benchmarks and insights, generated from the customer data of 100+ brands, to spark new ideas on the role of product registration and how it can help in evolving your company’s post-purchase customer journey.

1975

National Demographics & Lifestyles (NDL) Inc. Founded

1977

1988

R.L. Polk & Co. Purchased NDL

1998

Online Registration Launched

2000

Equifax Acquires Consumer Information Unit of Polk

2008

Registria isFounded

2010

Interaxis founded from Equifax registration assets after Equifax closes this business unit

2013

Registria and Interaxis Merge

NDL Pioneered Paper Registration 20

14

Mobile RegistrationLaunched(Photoregister for email and text)

2016

Photoregister for Web and Social Messenger Services launched

40TH ANNIVERSARY OF PRODUCT REGISTRATION

Registria is an award-winning Software-as-a-Service platform that supports streamlined ownership experiences for more than 100 of the world’s most recognizable brands. Purpose built for manufacturers, Registria integrates technology with digital marketing to connect a brand’s sales, marketing and service capabilities into a comprehensive solution. We enable brands to better understand their buyers, and for buyers to engage directly with the brands they buy throughout the ownership lifecycle . Registria recently launched Photoregister—a mobile registration solution—which provides the fastest way for consumers to register new product purchases via text, email, web, or social messaging

Learn more about Registria at registria.com

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2017 state of the industry - registria...• moms remain a force in product registration, especially...

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