Case Study: Oyster Helps Zooz Boost Sales by Offering Customers Peace of Mind and Protection

“Oyster was an absolute no-brainer for us as a business and it is working for our customers”.

Partner Background

Zooz Bikes is a trailblazing company. Founded in Chicago in 2017, Zooz is the first company to give eBikes a motorcycle-style seat on a BMX bike frame. Chris Zahner, CEO and one of the founders of Zooz, explains that the company “leverages an acute design paired with niche lifestyle functionality, which has resulted in a passionate riding community that loves the product.” Zooz has been a massive hit, fulfilling all 1,200 preorders of its $2,600 eBike in 2021 and experiencing significant growth throughout 2022.

Problem

One problem Zooz noticed is that with a passionate riding community comes a desire to protect their beloved purchases. This generally takes two forms: damage and theft.

Passionate riders result in more frequent use, which leads to increased exposure to damaging the bike when riding it. When someone damages their bike in an accident, a common reaction is to try and push the issue onto the retailer - “your bike broke”, rather than “I damaged your bike”. This is not a great situation for a retailer to find itself in. It adds additional overheads in terms of time spent dealing with customer inquiries, plus any costs involved to fix issues flagged as important to maintain strong customer relationships. As Chris explains, “Zooz do not want to absorb the cost if the customers are damaging the product”. 

Theft is also a huge factor for many prospective bike and eBike customers. This issue is amplified for Zooz because of a high concentration of sales in urban areas, where theft is perceived as a higher risk. With an item such as A Zooz eBike, not only is there the monetary cost associated with replacement, there is a also a big emotional cost attached to the loss of the bike. The perceived risk of theft often acts as a deterrent to consumers buying the product in the first place. Why invest in something for over $2,000 if you assume the chances of it being stolen are high? Chris frequently gets comments on social media along the lines of  “I would love to buy the bike, but it will disappear in a minute where I live”.

Before Oyster, there was no solution the Zooz team could offer their customers to help in these areas. 

Solution & Benefits

Zooz decided to tackle these problems by integrating with Oyster “because it specifically addressed the issues that Zooz has experienced”.

Benefit 1: Full Protection

Oyster offers comprehensive and tailored protection. Rather than applying a “cookie-cutter” approach in the same way most homeowners or renters policies do, Oyster’s product is designed for bikes and eBikes. This allows Zooz to offer protection to their customers that “specifically covers an item that they want to cover”.

Oyster also goes above and beyond that of a product warranty, which typically only covers mechanical defects for a limited time after purchase. As Chris explains, “Oyster offers protection that goes beyond the scope of the warranty, as well as after the warranty”.

Providing full protection for the most important risks helps to offer peace of mind to Zooz’s customers. They know they can ride their bike, safe in the knowledge that they are protected should they damage them. 

Benefit 2: Increased Conversion

Offering insurance at checkout helps to alleviate customer concerns about the cost and risk associated with purchasing an eBike.

Firstly, Oyster helps to protect customers if their bike gets stolen, which helps drive customer satisfaction. Secondly, Oyster helps to eliminate any concerns the customer has when deciding whether to buy the bike, which leads to higher conversion rates. As Chris explains, “Oyster helps customers overcome a potential objection and provides peace of mind when considering a purchase”.

Benefit 3: Fast & Zero Cost Integration

With an eCommerce store running on Shopify, Zooz was able to install Oyster’s no-code integration in under 20 minutes and deliver customers an instant quote and accurate understanding of their eBike insurance right at the point-of-sale. 

The speed and ease of the integration were a huge plus for the business and allowed it to continue focusing on core operations without any distractions. “We didn’t have to set it up ourselves on the website and we didn’t have to go through a lengthy onboarding process”. Importantly, the product is also completely free to access as a merchant, “we don’t have to pay a dime.”

Overall, the implementation of Oyster at checkout has been a successful solution for Zooz Bikes. By offering insurance at checkout, the company has been able to improve the shopping experience, alleviate customer concerns, and increase sales and customer satisfaction. 

“Oyster was an absolute no-brainer for us as a business and it is working for our customers”.

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If you’re a retailer looking for an omnichannel solution to boost sales and offer better customer experiences, Oyster can help. Schedule a demo here and we’ll be in touch.