In the days leading up to Mother’s Day, customers are often searching for the perfect gift, such as a beautiful bottle of perfume. When faced with two similar options—similar in size, scent, and price—what might sway their decision?
A simple line in one product description stating “Free gift wrapping and shipping included” can make all the difference, clinching the sale.
That’s the power of augmented products—valuable add-ons enhancing the products a business sells. These augmented products can help attract more customers, inspire long-term loyalty, and make your company more money.
Here’s a look at various types of augmented products and how they add value for both businesses and customers.
What is an augmented product?
An augmented product is an additional service or feature, physical or non-physical, helping differentiate a core product from its competitors. These augmentations go beyond the physical product itself, providing additional value to the customer without changing the core product or its functionality.
Common forms of product augmentation that add to a positive buying experience include:
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Warranties
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In-store financing
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Online tutorials
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Free installation services
You don’t need to offer an augmented product to win business, but free perks certainly help. For instance, eight out of 10 consumers consider free shipping to be a top priority in their online purchasing. Some industries, like electronics and automobiles, come with built-in expectations of product warranties.
When an augmented product adds features exceeding customer expectations, you enhance your brand’s reputation and gain a competitive advantage in a crowded marketplace.
How an augmented product works
The augmented product concept is part of a multilayered product model, bundling a physical item with additional features to provide intangible benefits to consumers. For a true augmented product definition, we’ll break this product bundle into three components.
Core product
The core product is the fundamental benefit or value the customer is buying. For example, when someone buys a new laptop, the core product includes word processing, multimedia editing, and internet connectivity. When someone buys a car, the core product is transportation. When someone reserves a night in a hotel room, the core product is a place to sleep and rest. This product level focuses on a customer’s fundamental need, which the product directly addresses.
Actual product
The actual product is the tangible, physical item or service behind the core benefit. The actual product features the attributes that inspire a purchase: design, brand name, functionality, packaging, and overall quality.
In the laptop example, this would be the device itself—its processor, hard drive, screen, battery life, operating system, and brand, as well as its packaging. In the car example, this would be the literal vehicle, including various levels of trim (e.g., leather seats, all-wheel drive, etc.). In the hotel example, this would be the room itself, including the bed, desk, shower, and other physical attributes.
Augmented product
The augmented product includes added services or benefits that go beyond the basic function and physical form of the product. Augmented products work by building on the core product and actual product to create a more complete, compelling offering. They help differentiate a business in competitive markets by increasing perceived value, a factor that often retains customers.
In our laptop example, augmented products could include free trials for services (e.g., three free months of Apple TV+ when you buy a MacBook, or even a free carrying case). In the car example, augmented product examples include free roadside assistance and an extended warranty at no extra cost. In the hotel example, a room could come bundled with free Wi-Fi, complimentary breakfast, and free parking. All of these provide added value and may attract customers who were considering other lodging options.
Examples of augmented products
A product augmentation strategy can help your business meet customer needs and add extra value to each purchase. The best add-on goods and services are ones that naturally align with the core product you’re promoting.
For example, it makes sense for appliance retailers to offer interest-free financing in their marketing campaigns, but it would be odd for a cosmetics retailer to offer it due to the product price point. That’s why any thought of product augmentation should start by weighing your core product and the needs of your customer. Here are some augmented products to consider offering.
Free delivery
Offering free shipping enhances the customer experience by reducing the total purchase cost and improving convenience. Shopify users often offer free shipping as a sales incentive, especially during peak shopping seasons. On a large scale, Amazon Prime is known for bundling fast, free delivery with membership, which has won the ecommerce behemoth millions of loyal customers.
For example, home composting retailer Lomi offers free shipping on orders of more than $50. Since Lomi’s signature product is over $400, this effectively amounts to free shipping for most people. The actual product is the physical food disposal appliance. The product’s augmentation is the free, convenient shipping, bringing it directly to the customer’s home.
Product warranties
A product warranty is a promise from the manufacturer or seller to stand behind the product’s quality, offering repair, replacement, or a refund for a specific period. Warranties are common in industries known for relatively high prices, including the furniture industry, the electronics industry, and the automobile industry.
Sometimes companies extend these warranties during special sales, such as with a holiday offer for a 10-year warranty on a range of household appliances. Businesses of all sizes offer warranties. Samsung does on its appliances, but so does Nama—whose juicers and milk makers include a 15-year warranty on all parts.
Free trials
Think of free trials as free samples of a service. Offering free product trials is a marketing technique companies use to introduce their customers to subscription services. However, they also represent valuable add-ons that can help you stand out from other sellers.
For example, many Shopify Apps offer seven- to 30-day trials so users can evaluate the functionality and fit. The core product is the app’s functionality, but the ability to use it risk-free is an augmentation demonstrating its value to customers.
Additional services
Added services support the use or maintenance of the core product. Examples include installation, setup assistance, training, or customer support. For example, a furniture store might offer in-home assembly, while many technology companies provide online services to help customers navigate their software.
Some jewelers, such as Virabyani Fine Jewelry, offer complimentary resizing with the purchase of certain engagement rings, wedding bands, bracelets, or other types of jewelry.
Technology upgrades
In some cases, the ability to upgrade a product or get access to new technology is a key augmentation. For example, many customers purchase smartphones expecting operating system updates for several years.
Shopify Apps often come with regular updates to improve usability. Businesses can beam software updates to users’ devices for very little money. Meanwhile, the added functionality can inspire brand loyalty among customers, making it a win-win for both sides.
Accessories
You can also offer a physical augmented product: an accessory to enhance your customer’s core product experience. Examples include a free charging brick with a mobile phone or a free vase with a bouquet of flowers.
Novo Guitars includes a premium guitar case free of charge with every purchase of a new guitar. The case helps Novo ensure its instruments arrive intact, and the customer benefits from the case’s practical functionality.
Augmented product FAQ
What is an example of an augmented product?
An example of an augmented product is a free delivery and assembly service offered by a furniture company. For instance, when you buy a sofa, the company will send someone to deliver it and assemble it in your home.
What best describes an augmented product?
An augmented product is a core product enhanced with additional features or services—such as free delivery, an extended warranty, or tech tutorials—adding value and differentiating it in the market.
What is the purpose of an augmented product?
The purpose of an augmented product is to provide purchasers with additional benefits to enhance the functionality of the core product (e.g., early boarding bundled with an airline ticket).
